$60 to $70 is a fair price for a barrel of oil, Egypt’s petroleum minister says

There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla. “It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy. If we see prices go down below a certain price then we will see a slowdown in investments,” he


There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla. “It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy. If we see prices go down below a certain price then we will see a slowdown in investments,” he
$60 to $70 is a fair price for a barrel of oil, Egypt’s petroleum minister says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: holly ellyatt, mohd jailanee othman, eyeem, getty images
Keywords: news, cnbc, companies, barrels, production, fair, million, egypts, barrel, minister, 60, prices, producers, day, petroleum, opec, oil, price, 70


$60 to $70 is a fair price for a barrel of oil, Egypt's petroleum minister says

There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla.

“It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy.

“If prices of crude increase significantly we would start to see inflation and an exaggeration in the slowdown in consumption from the other side. If we see prices go down below a certain price then we will see a slowdown in investments,” he said.

“So, actually, the fair equation is to have a balanced price between the producers and the consumers whereby each party is happy and to continue the growth of the global economy.”

Egypt is a significant oil and natural gas producer in the Middle East although it’s not a member of OPEC and its output is dwarfed by members of the oil producing group and other non-OPEC producers like Russia.

Egypt is aiming to boost production modestly in 2019, to 670,000 barrels a day, although its output still trails that of others in the region. The latest figures from OPEC’s monthly report in January showed that Egypt’s oil producing neighbors to the west, Libya and Algeria, produced 928,000 barrels a day and a million barrels a day respectively in December. OPEC lynchpin Saudi Arabia produced 10.5 million barrels a day.

OPEC and non-OPEC producers including Russia (collectively known as ‘OPEC plus’) have collaborated in recent years on cutting or increasing their oil production in a bid to stabilize oil prices which have been volatile since 2014.

They last agreed in December to cut oil production by 1.2 million barrels a day in order to put a floor under prices, which have fallen due to rising oil supply and lackluster demand amid an uncertain global growth outlook.

On Monday morning, Brent crude futures were trading at $61.87 a barrel while West Texas Intermediate (WTI) crude futures was trading at $52.25 a barrel. Prices took a dip in the early trading session on Monday after data showed drilling activity in the U.S., now the world’s largest oil producer, had increased again, pointing higher production.

The OPEC-Plus deal has not yet been realized fully with Russia slower to meet the desired output cut. Once the 1.2 million barrel a day cut was reached, El Molla said “I think it will adjust, and reach, the desired outcome of price.”

Speaking to CNBC’s Dan Murphy at the Egypt Petroleum Show, ‘EGYPS, ‘taking place in Cairo, El Molla said oil markets were “somehow close” to a price that can keep both oil producers happy because although oil prices have fallen from peaks of around $114 a barrel in mid-2014, production costs have also fallen with technological advances.

“With the advancement of technology, new ways of producing oil have added new volumes to the market and this technology means you’re reducing the cost per barrel, and what might have been accepted a few years ago back when we were talking about $100, or $90 or $80, a barrel oil wouldn’t be accepted now.”


Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: holly ellyatt, mohd jailanee othman, eyeem, getty images
Keywords: news, cnbc, companies, barrels, production, fair, million, egypts, barrel, minister, 60, prices, producers, day, petroleum, opec, oil, price, 70


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Music streaming service Spotify to buy podcast producers Gimlet Media and Anchor

Music streaming service Spotify on Wednesday announced plans to acquire privately held podcast producers Gimlet Media and Anchor. Terms of the deals were not disclosed. “These acquisitions will meaningfully accelerate our path to becoming the world’s leading audio platform, give users around the world access to the best podcast content, and improve the quality of our listening experience as well as enhance the Spotify brand,” Daniel Ek, Spotify co-founder and CEO, said in a statement. This is br


Music streaming service Spotify on Wednesday announced plans to acquire privately held podcast producers Gimlet Media and Anchor. Terms of the deals were not disclosed. “These acquisitions will meaningfully accelerate our path to becoming the world’s leading audio platform, give users around the world access to the best podcast content, and improve the quality of our listening experience as well as enhance the Spotify brand,” Daniel Ek, Spotify co-founder and CEO, said in a statement. This is br
Music streaming service Spotify to buy podcast producers Gimlet Media and Anchor Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-06  Authors: cnbccom staff
Keywords: news, cnbc, companies, updates, streaming, buy, media, statementthis, worlds, podcast, anchor, world, producers, users, quality, gimlet, music, service, spotify


Music streaming service Spotify to buy podcast producers Gimlet Media and Anchor

Music streaming service Spotify on Wednesday announced plans to acquire privately held podcast producers Gimlet Media and Anchor.

Terms of the deals were not disclosed.

“These acquisitions will meaningfully accelerate our path to becoming the world’s leading audio platform, give users around the world access to the best podcast content, and improve the quality of our listening experience as well as enhance the Spotify brand,” Daniel Ek, Spotify co-founder and CEO, said in a statement.

This is breaking news. Please check back for updates.


Company: cnbc, Activity: cnbc, Date: 2019-02-06  Authors: cnbccom staff
Keywords: news, cnbc, companies, updates, streaming, buy, media, statementthis, worlds, podcast, anchor, world, producers, users, quality, gimlet, music, service, spotify


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EU to hit Chinese e-bikes imports with tariffs

The anti-dumping and anti-subsidy duties are the latest in a series of EU measures against Chinese exports ranging from solar panels to steel, which have sparked strong words from Beijing. The Commission found Chinese exports of e-bikes to the European Union more than tripled from 2014 until September 2017. It has also said Chinese producers benefit from controlled aluminium prices as well as advantageous financing and land rights conditions and tax breaks. The European Bicycle Manufacturers Ass


The anti-dumping and anti-subsidy duties are the latest in a series of EU measures against Chinese exports ranging from solar panels to steel, which have sparked strong words from Beijing. The Commission found Chinese exports of e-bikes to the European Union more than tripled from 2014 until September 2017. It has also said Chinese producers benefit from controlled aluminium prices as well as advantageous financing and land rights conditions and tax breaks. The European Bicycle Manufacturers Ass
EU to hit Chinese e-bikes imports with tariffs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-18  Authors: giulia marchi bloomberg, bloomberg, getty images
Keywords: news, cnbc, companies, prices, worlds, companies, producers, bicycle, chinese, eu, duties, european, manufacturers, imports, exports, hit, tariffs, ebikes


EU to hit Chinese e-bikes imports with tariffs

The anti-dumping and anti-subsidy duties are the latest in a series of EU measures against Chinese exports ranging from solar panels to steel, which have sparked strong words from Beijing.

The Commission found Chinese exports of e-bikes to the European Union more than tripled from 2014 until September 2017. Their market share rose to 35 percent, while their average prices fell by 11 percent.

It has also said Chinese producers benefit from controlled aluminium prices as well as advantageous financing and land rights conditions and tax breaks.

Taiwan’s Giant, one of the world’s largest bicycle makers, which has factories in China as well as in the Netherlands, would be subject to a rate of 24.8 percent.

EU producers include Dutch groups Accell and Gazelle, Romania’s Eurosport DHS and Germany’s Derby Cycle Holding.

The European Bicycle Manufacturers Association said it applauded the move that it said would shield 800 small and medium sized companies employing 90,000 people.

However, it warned that Chinese e-bike manufacturers were already making their way to Europe via third countries where they were being repackaged.

LEVA-EU, a group including importers opposed to duties, said the tariffs were protectionist and absurd, saying they would hit consumers and other smaller European companies and went against the EU’s climate change goals.


Company: cnbc, Activity: cnbc, Date: 2019-01-18  Authors: giulia marchi bloomberg, bloomberg, getty images
Keywords: news, cnbc, companies, prices, worlds, companies, producers, bicycle, chinese, eu, duties, european, manufacturers, imports, exports, hit, tariffs, ebikes


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Here’s exactly how much oil OPEC members and allied nations intend to cut in 2019

Six weeks after agreeing to slash production, major oil producers are finally giving investors some clarity on exactly how much crude they’ll take off the market. OPEC on Friday released a table laying out production quotas for each of its 14 members and the 10 allied countries participating in the deal. However, over the following weeks, international benchmark Brent crude prices fell another 18 percent. The continued slide reportedly prompted OPEC to urge oil producers to publicly release thei


Six weeks after agreeing to slash production, major oil producers are finally giving investors some clarity on exactly how much crude they’ll take off the market. OPEC on Friday released a table laying out production quotas for each of its 14 members and the 10 allied countries participating in the deal. However, over the following weeks, international benchmark Brent crude prices fell another 18 percent. The continued slide reportedly prompted OPEC to urge oil producers to publicly release thei
Here’s exactly how much oil OPEC members and allied nations intend to cut in 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-18  Authors: tom dichristopher, bloomberg, getty images
Keywords: news, cnbc, companies, slash, nations, allied, production, producers, opec, 2019, prices, cut, quotas, deal, members, intend, heres, crude, oil, weeks, exactly


Here's exactly how much oil OPEC members and allied nations intend to cut in 2019

Six weeks after agreeing to slash production, major oil producers are finally giving investors some clarity on exactly how much crude they’ll take off the market.

OPEC on Friday released a table laying out production quotas for each of its 14 members and the 10 allied countries participating in the deal. The two dozen nations agreed last month to slash a combined 1.2 million barrels per day in order to prevent a repeat of the oil glut that caused crude prices to tank from 2014 to 2016.

However, over the following weeks, international benchmark Brent crude prices fell another 18 percent. The continued slide reportedly prompted OPEC to urge oil producers to publicly release their production quotas to boost the market’s confidence in the cuts.

While oil prices have risen for the last three weeks, OPEC has nevertheless decided to publish the output levels under the deal, which runs through the first six months of 2019. The so-called OPEC+ alliance meets April 17-18 to assess the impact of the cuts.

Here’s how much each of the countries in the deal will endeavor to keep off the market:


Company: cnbc, Activity: cnbc, Date: 2019-01-18  Authors: tom dichristopher, bloomberg, getty images
Keywords: news, cnbc, companies, slash, nations, allied, production, producers, opec, 2019, prices, cut, quotas, deal, members, intend, heres, crude, oil, weeks, exactly


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USDA calls back 2,500 workers from shutdown furlough as farmers wait for trade war bailouts

The USDA operates more than 2,100 FSA offices and nearly half are expected reopen for at least three business days, starting Thursday. The FSA offices serve an important function in processing and administering crop insurance and farm loan programs. An unidentified USDA spokesperson responded to a CNBC inquiry Wednesday by indicating that “983 out of 2,124 FSA offices are reopening.” The nation’s largest organization of farmers and ranchers applauded the USDA’s announcement that it will temporar


The USDA operates more than 2,100 FSA offices and nearly half are expected reopen for at least three business days, starting Thursday. The FSA offices serve an important function in processing and administering crop insurance and farm loan programs. An unidentified USDA spokesperson responded to a CNBC inquiry Wednesday by indicating that “983 out of 2,124 FSA offices are reopening.” The nation’s largest organization of farmers and ranchers applauded the USDA’s announcement that it will temporar
USDA calls back 2,500 workers from shutdown furlough as farmers wait for trade war bailouts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-16  Authors: jeff daniels, aaron p bernstein
Keywords: news, cnbc, companies, war, trade, calls, fsa, farm, bailouts, farmers, sign, workers, wait, reopen, shutdown, usda, temporarily, offices, producers, furlough, trump


USDA calls back 2,500 workers from shutdown furlough as farmers wait for trade war bailouts

The U.S. Department of Agriculture announced Wednesday it plans to temporarily reopen about half of its Farm Service Agency offices around the country and call back about 2,500 employees furloughed because of the partial government shutdown.

The USDA operates more than 2,100 FSA offices and nearly half are expected reopen for at least three business days, starting Thursday.

About 800,000 total federal workers are either furloughed or working without pay during the shutdown, which started days before Christmas after President Donald Trump refused to sign any spending bills that don’t include more than $5 billion in funding for his proposed southern border wall. Democrats have rejected any proposal to fund the wall.

“Until Congress sends President Trump an appropriations bill in the form that he will sign, we are doing our best to minimize the impact of the partial federal funding lapse on America’s agricultural producers,” USDA Secretary Sonny Perdue said in a release. “We are bringing back part of our FSA team to help producers with existing farm loans. Meanwhile, we continue to examine our legal authorities to ensure we are providing services to our customers to the greatest extent possible during the shutdown.”

The shutdown comes as agricultural producers around the country are preparing to make plans for the upcoming planting season as well as considering crop insurance and credit and loan programs. The FSA offices serve an important function in processing and administering crop insurance and farm loan programs.

An unidentified USDA spokesperson responded to a CNBC inquiry Wednesday by indicating that “983 out of 2,124 FSA offices are reopening.”

The nation’s largest organization of farmers and ranchers applauded the USDA’s announcement that it will temporarily reopen the FSA offices.

“We are delighted to hear it,” said Will Rodger, director of policy communications at the American Farm Bureau Federation. “It’s a good move and something our farmers need. It’s particularly welcome since FSA lends to new smaller and disadvantaged farmers as well as more established farms and ranches.”


Company: cnbc, Activity: cnbc, Date: 2019-01-16  Authors: jeff daniels, aaron p bernstein
Keywords: news, cnbc, companies, war, trade, calls, fsa, farm, bailouts, farmers, sign, workers, wait, reopen, shutdown, usda, temporarily, offices, producers, furlough, trump


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Abu Dhabi’s Mubadala has its eye on North American shale

While North American shale may be competition for OPEC members, some crude-exporting countries in the Arabian Gulf are simultaneously taking advantage of the commodity’s ability to fuel lucrative investments beyond oil. For the United Arab Emirates’ Musabbeh al-Kaabi, chief executive of Abu Dhabi’s Mubadala Petroleum and Petrochemicals, the shale revolution has the made North American gas and petrochemicals industry very attractive, bringing competitively-priced gas feedstock to the market. The


While North American shale may be competition for OPEC members, some crude-exporting countries in the Arabian Gulf are simultaneously taking advantage of the commodity’s ability to fuel lucrative investments beyond oil. For the United Arab Emirates’ Musabbeh al-Kaabi, chief executive of Abu Dhabi’s Mubadala Petroleum and Petrochemicals, the shale revolution has the made North American gas and petrochemicals industry very attractive, bringing competitively-priced gas feedstock to the market. The
Abu Dhabi’s Mubadala has its eye on North American shale Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-12  Authors: natasha turak
Keywords: news, cnbc, companies, abu, petrochemicals, north, investments, feedstock, american, alkaabi, energy, producers, gas, shale, mubadala, dhabis, big, eye


Abu Dhabi's Mubadala has its eye on North American shale

While North American shale may be competition for OPEC members, some crude-exporting countries in the Arabian Gulf are simultaneously taking advantage of the commodity’s ability to fuel lucrative investments beyond oil.

For the United Arab Emirates’ Musabbeh al-Kaabi, chief executive of Abu Dhabi’s Mubadala Petroleum and Petrochemicals, the shale revolution has the made North American gas and petrochemicals industry very attractive, bringing competitively-priced gas feedstock to the market.

The petrochemicals firm is a major component of Mubadala Investment Company, Abu Dhabi’s state-owned holding company. It operates as a sovereign wealth fund with assets of more than $226 billion, and is aimed at diversifying the emirate’s economy.

“We as an investor made big investments in the last 18 months, north of $12 billion dollars, and some of these big investments are happening in North America,” al-Kaabi told CNBC’s Hadley Gamble during the Atlantic Council Energy Forum in Abu Dhabi.

This was for two simple reasons, the CEO said. “It is a big market and it is enjoying a highly competitive feedstock. So we like the business in that part of the world because of these two reasons.” Feedstock refers to raw material, such as natural gas, used in petrochemical production. Gas dominate’s the company’s business, and al-Kaabi has previously highlighted North America as the focus of a strategic shift when it comes to petrochemicals thanks to the shale revolution.

“Other parts of global energy I would say, the energy industry, the price would be set by the high cost producers going forward,” al-Kaabi added. “And who are the high cost producers nowadays? The shale producers. And we will keep monitoring what is happening in that part of the world.”


Company: cnbc, Activity: cnbc, Date: 2019-01-12  Authors: natasha turak
Keywords: news, cnbc, companies, abu, petrochemicals, north, investments, feedstock, american, alkaabi, energy, producers, gas, shale, mubadala, dhabis, big, eye


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Russia plays down idea of forming joint organisation with OPEC given US sanctions risk

It is highly unlikely that OPEC and other oil producers would set up a joint structure due to the additional red tape it would create as well as the risk of U.S. monopoly-related sanctions, Russian Energy Minister Alexander Novak said on Thursday. The Organization of the Petroleum Exporting Countries and other top oil producers led by Russia have since the end of 2016 made an unprecedented joint effort to curb output and support prices. OPEC and Russia jointly produce more than 40 percent of the


It is highly unlikely that OPEC and other oil producers would set up a joint structure due to the additional red tape it would create as well as the risk of U.S. monopoly-related sanctions, Russian Energy Minister Alexander Novak said on Thursday. The Organization of the Petroleum Exporting Countries and other top oil producers led by Russia have since the end of 2016 made an unprecedented joint effort to curb output and support prices. OPEC and Russia jointly produce more than 40 percent of the
Russia plays down idea of forming joint organisation with OPEC given US sanctions risk Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-27  Authors: omar marques, anadolu agency, getty images
Keywords: news, cnbc, companies, joint, opec, producers, sanctions, novak, oil, forming, worlds, energy, plays, idea, unprecedented, additional, organisation, given, risk, russia


Russia plays down idea of forming joint organisation with OPEC given US sanctions risk

It is highly unlikely that OPEC and other oil producers would set up a joint structure due to the additional red tape it would create as well as the risk of U.S. monopoly-related sanctions, Russian Energy Minister Alexander Novak said on Thursday.

The Organization of the Petroleum Exporting Countries and other top oil producers led by Russia have since the end of 2016 made an unprecedented joint effort to curb output and support prices.

OPEC and Russia jointly produce more than 40 percent of the world’s oil.

Russia’s energy ministry had said that Moscow and OPEC lynchpin Saudi Arabia had reached a general agreement that the OPEC+ format should be “institutionalized” and extended until 2019 and beyond to monitor the market and take joint action if needed.

However, Novak said such an idea has been ditched.

“There is a consensus that there will be no such organisation. That’s because it requires additional bureaucratic brouhaha in relation to financing, cartel, with the U.S. side,” Novak told a briefing to reporters.


Company: cnbc, Activity: cnbc, Date: 2018-12-27  Authors: omar marques, anadolu agency, getty images
Keywords: news, cnbc, companies, joint, opec, producers, sanctions, novak, oil, forming, worlds, energy, plays, idea, unprecedented, additional, organisation, given, risk, russia


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Qatar to quit OPEC after more than 57 years, denies decision related to Saudi-led boycott

Qatar announced plans to pull out of OPEC on Monday, just days before a crucial meeting between the influential oil cartel and its allies. Speaking at a news conference, Qatar’s Energy Minister Saad al-Kaabi said the country would withdraw from OPEC on January 1, 2019, ending a membership which has stood for more than half-a-century. The decision comes after Qatar reviewed ways in which it could improve its global standing and plan its long-term strategy. The country’s energy minister said Monda


Qatar announced plans to pull out of OPEC on Monday, just days before a crucial meeting between the influential oil cartel and its allies. Speaking at a news conference, Qatar’s Energy Minister Saad al-Kaabi said the country would withdraw from OPEC on January 1, 2019, ending a membership which has stood for more than half-a-century. The decision comes after Qatar reviewed ways in which it could improve its global standing and plan its long-term strategy. The country’s energy minister said Monda
Qatar to quit OPEC after more than 57 years, denies decision related to Saudi-led boycott Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: sam meredith, barbara gindl, afp, getty images
Keywords: news, cnbc, companies, saudi, producers, oil, 57, denies, opec, saudiled, qatar, quit, decision, boycott, related, qatars, minister, energy, meeting


Qatar to quit OPEC after more than 57 years, denies decision related to Saudi-led boycott

Qatar announced plans to pull out of OPEC on Monday, just days before a crucial meeting between the influential oil cartel and its allies.

Speaking at a news conference, Qatar’s Energy Minister Saad al-Kaabi said the country would withdraw from OPEC on January 1, 2019, ending a membership which has stood for more than half-a-century.

The decision comes after Qatar reviewed ways in which it could improve its global standing and plan its long-term strategy.

While Qatar is one of OPEC’s smallest oil producers, especially when compared to the likes of de facto leader Saudi Arabia, it is one of the world’s largest producers of liquefied natural gas (LNG).

The country’s energy minister said Monday that the move represents a “technical and strategic” change, Reuters reported, and was not politically motivated.

Qatar’s Al-Kaabi also said the decision was not linked to the 18-month political and economic boycott of Doha.

Since June 2017, OPEC kingpin Saudi Arabia — along with three other Arab states — has cut trade and transport ties with Qatar, accusing the country of supporting terrorism and their regional rival, Iran. Qatar denies the claims, saying the boycott hampers its national sovereignty.

The Middle East-dominated group’s final meeting of the calendar year is now expected to be Qatar’s last. It has been an official OPEC member since 1961.


Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: sam meredith, barbara gindl, afp, getty images
Keywords: news, cnbc, companies, saudi, producers, oil, 57, denies, opec, saudiled, qatar, quit, decision, boycott, related, qatars, minister, energy, meeting


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Why a critical OPEC meeting may end with confusion and lower oil prices

When OPEC reached a deal with Russia and other producers in 2016 to end a two-year oil price slump, it was a relatively straightforward affair. The alliance announced it was slashing output, each country agreed to a specific production quota and international oil prices rallied about $7 a barrel. Markets responded to OPEC’s ambiguity by pushing oil prices higher, the opposite of what the cartel intended. John Kilduff, founding partner at energy hedge fund Again Capital, says traders may punish o


When OPEC reached a deal with Russia and other producers in 2016 to end a two-year oil price slump, it was a relatively straightforward affair. The alliance announced it was slashing output, each country agreed to a specific production quota and international oil prices rallied about $7 a barrel. Markets responded to OPEC’s ambiguity by pushing oil prices higher, the opposite of what the cartel intended. John Kilduff, founding partner at energy hedge fund Again Capital, says traders may punish o
Why a critical OPEC meeting may end with confusion and lower oil prices Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: tom dichristopher, leonhard foeger
Keywords: news, cnbc, companies, opec, oil, meeting, lower, confusion, output, prices, end, price, weeks, producers, market, critical, think


Why a critical OPEC meeting may end with confusion and lower oil prices

When OPEC reached a deal with Russia and other producers in 2016 to end a two-year oil price slump, it was a relatively straightforward affair. The alliance announced it was slashing output, each country agreed to a specific production quota and international oil prices rallied about $7 a barrel.

Heading into next week’s OPEC meeting, few analysts anticipate such decisive action or so clear-cut an outcome — even with the oil market near the bottom of the worst price plunge since the 2008 financial crisis.

To be sure, top OPEC producer Saudi Arabia and its Gulf allies are widely expected to orchestrate another output cut when producers meet in Vienna on Thursday. The signals are clear: Forecasters think the oil market will be oversupplied next year, the cost of crude has tumbled more than 30 percent in just eight weeks, and most OPEC members don’t stand a chance of balancing their budgets at current price levels.

But the group is dealing with a very different set of challenges than it faced in 2016, including a U.S. president who is fiercely opposed to price-boosting production cuts. Analysts now expect the meeting to culminate with an official statement that leaves the market scratching its head over just how many barrels OPEC intends to take off the market.

“I do think there will be OPEC math,” said Tamar Essner, director of energy and utilities at Nasdaq Corporate Solutions. “You’ll have to figure out the cuts from baseline levels. I don’t think it will be necessarily all that clear based on the statements.”

That could result in a repeat of OPEC’s June meeting. With oil prices rising rapidly, the group agreed to reverse course and hike output but offered little in the way of a blueprint.

The OPEC alliance agreed two years ago to keep 1.8 million barrels per day off the market, but by this last April, the group’s output had fallen by about 2.7 million bpd. Instead of clearly stating they would correct by restoring about 1 million bpd, producers vowed to return to 100 percent compliance. The group also failed to release revised quotas for each nation.

Markets responded to OPEC’s ambiguity by pushing oil prices higher, the opposite of what the cartel intended.

In the following months, U.S. crude rallied to a nearly four-year high at $76.90 a barrel, driven by fears of oil shortages ahead of U.S. sanctions on Iran. The price has since tumbled 35 percent over the last eight weeks, hitting a 13-month low at $49.41 on Thursday.

John Kilduff, founding partner at energy hedge fund Again Capital, says traders may punish oil prices if the OPEC statement once again disappoints the market.

“If this OPEC meeting falls apart, you could see prices rapidly fall down to potential support down to $42,” he told CNBC’s “Power Lunch” on Thursday. “There is a zone of congestion on the charts … between $45 and $50, so it will be a tough slog, but your downside objective is $42.”


Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: tom dichristopher, leonhard foeger
Keywords: news, cnbc, companies, opec, oil, meeting, lower, confusion, output, prices, end, price, weeks, producers, market, critical, think


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Oil’s Black Friday drop could hit drilling budgets for 2019

North American oil producers that have been increasing spending to take advantage of this year’s higher prices will dial back as November’s reversal fuels worries about a 2019 surplus, energy executives say. The drop comes as many oil producers are assembling drilling budgets for 2019. “Everybody’s going to get hit,” said Cole Frederick, co-founder of Peak Land Services, which helps oil companies acquire properties in Texas shale fields. He noted, however, that November’s price is well above the


North American oil producers that have been increasing spending to take advantage of this year’s higher prices will dial back as November’s reversal fuels worries about a 2019 surplus, energy executives say. The drop comes as many oil producers are assembling drilling budgets for 2019. “Everybody’s going to get hit,” said Cole Frederick, co-founder of Peak Land Services, which helps oil companies acquire properties in Texas shale fields. He noted, however, that November’s price is well above the
Oil’s Black Friday drop could hit drilling budgets for 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-24
Keywords: news, cnbc, companies, oils, smaller, hit, texas, 2019, frederick, producers, price, black, novembers, drilling, north, drop, oil, worries, budgets, crude


Oil's Black Friday drop could hit drilling budgets for 2019

North American oil producers that have been increasing spending to take advantage of this year’s higher prices will dial back as November’s reversal fuels worries about a 2019 surplus, energy executives say.

U.S. light sweet crude settled on Friday at $50.42 a barrel, down nearly 23 percent since October and the lowest in more than a year over worries about oversupply and the Sino-U.S. trade war. The drop comes as many oil producers are assembling drilling budgets for 2019.

“Everybody’s going to get hit,” said Cole Frederick, co-founder of Peak Land Services, which helps oil companies acquire properties in Texas shale fields. He noted, however, that November’s price is well above the lows that put hundreds of smaller companies out of business in early 2016.

“I was praying for $50 oil two years ago when the price was $26,” Frederick said in an interview. “If you’re a smaller guy, you’ve got to be more selective.”

Oil in West Texas and North Dakota traded at discounts to the U.S. benchmark of around $6 and $15 a barrel, respectively, as production outran transport space to carry crude to markets. In Western Canada, heavy oil on Friday fell to a $37 discount to U.S. crude futures.


Company: cnbc, Activity: cnbc, Date: 2018-11-24
Keywords: news, cnbc, companies, oils, smaller, hit, texas, 2019, frederick, producers, price, black, novembers, drilling, north, drop, oil, worries, budgets, crude


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