‘Jaws of death’: England could face water shortages within the next 25 years

England could experience water shortages within the next 25 years, the chief executive of the Environment Agency has warned. Because of the effects of climate change, the U.K. will have summers that are hotter and drier, which will lead to an increasing number of water shortages, Bevan noted. The speech will highlight the importance of reducing demand and increasing supply. This could be achieved through a range of methods, from cutting leakages and more water metering to increasing supply throu


England could experience water shortages within the next 25 years, the chief executive of the Environment Agency has warned. Because of the effects of climate change, the U.K. will have summers that are hotter and drier, which will lead to an increasing number of water shortages, Bevan noted. The speech will highlight the importance of reducing demand and increasing supply. This could be achieved through a range of methods, from cutting leakages and more water metering to increasing supply throu
‘Jaws of death’: England could face water shortages within the next 25 years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-19  Authors: anmar frangoul, christopher furlong, getty images news, getty images
Keywords: news, cnbc, companies, environment, death, jaws, supply, england, liters, face, need, increasing, uk, 25, waterwise, water, change, shortages, bevan


'Jaws of death': England could face water shortages within the next 25 years

England could experience water shortages within the next 25 years, the chief executive of the Environment Agency has warned.

James Bevan delivered remarks at the Waterwise Conference in London on Tuesday, and stated that in around 20 to 25 years from now, the country would face a “jaws of death – the point at which, unless we take action to change things, we will not have enough water to supply our needs.”

Because of the effects of climate change, the U.K. will have summers that are hotter and drier, which will lead to an increasing number of water shortages, Bevan noted.

He explained how, by the middle of the century, the amount of available water could drop by 10 to 15 percent, with many parts of the country facing “significant water deficits by 2050.”

Climate change, coupled with population growth, will result in an “existential threat” to “our economy, environment, security, happiness, way of life,” Bevan said. “We can choose to ignore this problem. Or we can choose to tackle it.”

The speech will highlight the importance of reducing demand and increasing supply. This could be achieved through a range of methods, from cutting leakages and more water metering to increasing supply through the construction of new desalination plants and reservoirs.

Crucially, people will also need to cut the amount of water they waste. “We need water wastage to be as socially unacceptable as blowing smoke in the face of a baby or throwing your plastic bags into the sea,” Bevan said. “We need everyone to take responsibility for their own water usage.”

Bevan noted that the average person in the U.K. currently uses 140 liters a day. This is a figure that Waterwise, an independent NGO, estimates can be cut to 100 liters a day.

People will need to undertake several measures to reduce their usage. These include taking short showers instead of deep baths, using low flush toilets, and turning the tap off while brushing teeth.

“If by 2050 we reduced per capita consumption to 100 liters a day, leakage by 50 percent, and did nothing else, it would provide enough water for an additional 20 million people without taking any more from the environment,” Bevan explained, noting that while the goal of long-term water resilience was ambitious, “it is also achievable.”


Company: cnbc, Activity: cnbc, Date: 2019-03-19  Authors: anmar frangoul, christopher furlong, getty images news, getty images
Keywords: news, cnbc, companies, environment, death, jaws, supply, england, liters, face, need, increasing, uk, 25, waterwise, water, change, shortages, bevan


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Russia will be fully compliant with OPEC-led supply cuts by April, energy minister says

Russian Energy Minister Alexander Novak said on Sunday that Moscow will be fully compliant with OPEC-led supply cuts over the coming weeks. “As for the target output level that forms part of the signed agreement, we plan to reach those figures by the end of March (or) beginning of April. The producers meet in mid-April to review their oil supply cut agreement, which is scheduled to last through the first-half of 2019. OPEC’s share is 800,000 b/d, to be delivered by 11 members — with Iran, Venezu


Russian Energy Minister Alexander Novak said on Sunday that Moscow will be fully compliant with OPEC-led supply cuts over the coming weeks. “As for the target output level that forms part of the signed agreement, we plan to reach those figures by the end of March (or) beginning of April. The producers meet in mid-April to review their oil supply cut agreement, which is scheduled to last through the first-half of 2019. OPEC’s share is 800,000 b/d, to be delivered by 11 members — with Iran, Venezu
Russia will be fully compliant with OPEC-led supply cuts by April, energy minister says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-17  Authors: sam meredith
Keywords: news, cnbc, companies, cuts, russia, opecled, months, supply, minister, compliant, extension, fully, agreement, target, discussed, output, novak, energy


Russia will be fully compliant with OPEC-led supply cuts by April, energy minister says

Russian Energy Minister Alexander Novak said on Sunday that Moscow will be fully compliant with OPEC-led supply cuts over the coming weeks.

“As far as the meeting is concerned we, of course, discussed the situation with the execution of the agreement (and) we stressed once again that Russia is discharging its obligations in accordance with the agreement to smoothly achieve the target output,” Novak told CNBC’s Dan Murphy in Baku, Azerbaijan, according to a translation.

“As for the target output level that forms part of the signed agreement, we plan to reach those figures by the end of March (or) beginning of April. This is earlier than in the same period two years ago by about one month.”

His comments come three months into a fresh round of production cuts from the so-called OPEC+ alliance. The producers meet in mid-April to review their oil supply cut agreement, which is scheduled to last through the first-half of 2019.

The Middle East-dominated group, alongside non-OPEC allies such as Russia, agreed to reduce output by 1.2 million barrels per day (b/d) for six months.

OPEC’s share is 800,000 b/d, to be delivered by 11 members — with Iran, Venezuela and Libya exempt from cuts.

When asked whether Russia would support an extension to the cuts, Novak replied: “It is a little premature to talk about this. The deal after all covers the first six months of the year so any extension will be discussed in May or June this year.”


Company: cnbc, Activity: cnbc, Date: 2019-03-17  Authors: sam meredith
Keywords: news, cnbc, companies, cuts, russia, opecled, months, supply, minister, compliant, extension, fully, agreement, target, discussed, output, novak, energy


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Chinese companies are reporting delays in getting paid by business partners

Companies in China are increasingly having difficulty getting paid. “This context has led to pressure for Chinese companies, who have resorted to using longer payment terms to sustain business,” Carlos Casanova, Coface’s Hong Kong-based economist for Asia Pacific, said in his firm’s China Payment Survey 2019, released Thursday. The longest payment terms were seen in the automotive and broader transportation sector as well as the construction and energy sectors, according to Casanova’s report. Co


Companies in China are increasingly having difficulty getting paid. “This context has led to pressure for Chinese companies, who have resorted to using longer payment terms to sustain business,” Carlos Casanova, Coface’s Hong Kong-based economist for Asia Pacific, said in his firm’s China Payment Survey 2019, released Thursday. The longest payment terms were seen in the automotive and broader transportation sector as well as the construction and energy sectors, according to Casanova’s report. Co
Chinese companies are reporting delays in getting paid by business partners Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-15  Authors: kelly olsen, giulia marchi, bloomberg, getty images
Keywords: news, cnbc, companies, terms, reporting, partners, slowing, paid, survey, supply, getting, trade, delays, total, companies, chinese, business, payment, war, pressure


Chinese companies are reporting delays in getting paid by business partners

Companies in China are increasingly having difficulty getting paid.

The country’s slowing economic growth, tighter credit conditions and rising bond defaults are putting pressure on corporate cash flows, according to a survey by French trade insurer Coface.

Growth in the world’s second-largest economy slowed to 6.6 percent in 2018, the worst showing since 1990. Efforts by authorities to rein in high debt levels by constricting credit were a factor behind record corporate bond defaults, while the trade war with the United States also weighed on businesses and consumer spending.

“This context has led to pressure for Chinese companies, who have resorted to using longer payment terms to sustain business,” Carlos Casanova, Coface’s Hong Kong-based economist for Asia Pacific, said in his firm’s China Payment Survey 2019, released Thursday.

The longest payment terms were seen in the automotive and broader transportation sector as well as the construction and energy sectors, according to Casanova’s report.

Coface queried 1,500 Chinese companies and found that 62 percent reported delays in getting paid last year.

Many companies have complex supply relationships. Automobile manufacturers, for example, need to procure steel, plastic and electronic components and numerous transactions occur along the supply chain. That dynamic is also at play in other industries, such as construction.

A total of 40 percent of respondents said payment delays increased last year, higher than the 29 percent recorded in 2017.

Coface said 90 percent of the surveyed companies are privately owned while 10 percent are state owned.

Pressure from the slowing economy and the trade war eventually caused authorities to pause last year in their efforts to pare down total debt, estimated at more than three times the size of China’s GDP, in order to try and support overall growth.


Company: cnbc, Activity: cnbc, Date: 2019-03-15  Authors: kelly olsen, giulia marchi, bloomberg, getty images
Keywords: news, cnbc, companies, terms, reporting, partners, slowing, paid, survey, supply, getting, trade, delays, total, companies, chinese, business, payment, war, pressure


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OPEC stresses need for 2019 oil supply cuts as rivals pump more

OPEC, Russia and other non-OPEC producers, an alliance known as OPEC+, agreed in December to reduce output by 1.2 million bpd from Jan. 1 to prevent excess supply building up. “While oil demand is expected to grow at a moderate pace in 2019, it is still well below the strong growth expected in the non-OPEC supply forecast for this year,” OPEC said in the report. OPEC sources have said an extension of the supply-cutting pact beyond June is the likely scenario. In the report, OPEC said its oil out


OPEC, Russia and other non-OPEC producers, an alliance known as OPEC+, agreed in December to reduce output by 1.2 million bpd from Jan. 1 to prevent excess supply building up. “While oil demand is expected to grow at a moderate pace in 2019, it is still well below the strong growth expected in the non-OPEC supply forecast for this year,” OPEC said in the report. OPEC sources have said an extension of the supply-cutting pact beyond June is the likely scenario. In the report, OPEC said its oil out
OPEC stresses need for 2019 oil supply cuts as rivals pump more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-14  Authors: omar marques, sopa images, lightrocket, getty images
Keywords: news, cnbc, companies, supplycutting, oil, opec, demand, million, pump, russia, need, stresses, report, supply, bpd, 2019, rivals, cuts, forecast


OPEC stresses need for 2019 oil supply cuts as rivals pump more

OPEC on Thursday cut the forecast of global demand for its crude this year as rivals boost production, building a case to extend a supply-cutting deal with Russia and other allies beyond the first half of 2019.

In a monthly report, the Organization of the Petroleum Exporting Countries said 2019 demand for its crude would average 30.46 million barrels per day, 130,000 bpd less than forecast last month and below what it is currently producing.

OPEC, Russia and other non-OPEC producers, an alliance known as OPEC+, agreed in December to reduce output by 1.2 million bpd from Jan. 1 to prevent excess supply building up. The cut lasts for six months initially.

“While oil demand is expected to grow at a moderate pace in 2019, it is still well below the strong growth expected in the non-OPEC supply forecast for this year,” OPEC said in the report.

“This highlights the continued shared responsibility of all participating producing countries to avoid a relapse of the imbalance and continue to support oil market stability in 2019.”

OPEC sources have said an extension of the supply-cutting pact beyond June is the likely scenario. The group and its allies are due to meet in April and June to discuss policy.

In the report, OPEC said its oil output fell by 221,000 bpd month-on-month to 30.55 million bpd in February. That amounts to 105 percent compliance with pledged cuts, according to a Reuters calculation, up from January’s rate.


Company: cnbc, Activity: cnbc, Date: 2019-03-14  Authors: omar marques, sopa images, lightrocket, getty images
Keywords: news, cnbc, companies, supplycutting, oil, opec, demand, million, pump, russia, need, stresses, report, supply, bpd, 2019, rivals, cuts, forecast


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OPEC, long a villain in America’s eyes, is now trying to flip the script

For many Americans, OPEC is the villain of the oil market, a secretive cabal whose members enrich themselves at the expense of the rest of the world by withholding petroleum and driving up the cost of the precious resource. “We have been operating in silos for too long, and this is not good practice in today’s globalized world,” OPEC Secretary Mohammed Barkindo told reporters gathered in Houston for CERAWeek by IHS Markit, one of the year’s biggest energy conferences. The admission was just one


For many Americans, OPEC is the villain of the oil market, a secretive cabal whose members enrich themselves at the expense of the rest of the world by withholding petroleum and driving up the cost of the precious resource. “We have been operating in silos for too long, and this is not good practice in today’s globalized world,” OPEC Secretary Mohammed Barkindo told reporters gathered in Houston for CERAWeek by IHS Markit, one of the year’s biggest energy conferences. The admission was just one
OPEC, long a villain in America’s eyes, is now trying to flip the script Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-13  Authors: tom dichristopher, mary catherine wellons, ali mohammadi, bloomberg, getty images, athanasios gioumpasis, nick oxford, mandel ngan, afp, nerijus adomaitis
Keywords: news, cnbc, companies, villain, trying, script, world, oil, think, americans, opec, long, week, flip, americas, market, withholding, eyes, supply, group


OPEC, long a villain in America's eyes, is now trying to flip the script

For many Americans, OPEC is the villain of the oil market, a secretive cabal whose members enrich themselves at the expense of the rest of the world by withholding petroleum and driving up the cost of the precious resource.

This week, the group’s chief representative suggested that OPEC itself bears some responsibility for that perception — if only because it has neglected to tell its own story.

“We have been operating in silos for too long, and this is not good practice in today’s globalized world,” OPEC Secretary Mohammed Barkindo told reporters gathered in Houston for CERAWeek by IHS Markit, one of the year’s biggest energy conferences.

The admission was just one example of how OPEC is seeking to take ownership of its reputation and change the way Americans think about the group. Under Barkindo’s stewardship the group is increasingly communicating with U.S. audiences at conferences, think tanks and other events.

The key message is that OPEC is a stabilizing force in a volatile oil market prone to a destructive cycle of boom and bust. By opening the taps or throttling back supply, OPEC can keep oil flows and crude prices at sustainable levels — not too high to hurt consumers, but not too low to choke off necessary investment in future supply.


Company: cnbc, Activity: cnbc, Date: 2019-03-13  Authors: tom dichristopher, mary catherine wellons, ali mohammadi, bloomberg, getty images, athanasios gioumpasis, nick oxford, mandel ngan, afp, nerijus adomaitis
Keywords: news, cnbc, companies, villain, trying, script, world, oil, think, americans, opec, long, week, flip, americas, market, withholding, eyes, supply, group


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Saudi oil minister Khalid al-Falih says no OPEC+ output policy change until June

Saudi oil minister Khalid al-Falih said on Sunday it would be too early to change OPEC+ output policy at the group’s meeting in April and that China and the U.S. would lead healthy global demand for oil this year. Falih said the group was unlikely to change its output policy in April and if required would make adjustments in June. “We will see where the market is by June and adjust appropriately,” Falih said after a meeting with Indian oil minister Dharmendra Pradhan in New Delhi. On Jan. 1, OPE


Saudi oil minister Khalid al-Falih said on Sunday it would be too early to change OPEC+ output policy at the group’s meeting in April and that China and the U.S. would lead healthy global demand for oil this year. Falih said the group was unlikely to change its output policy in April and if required would make adjustments in June. “We will see where the market is by June and adjust appropriately,” Falih said after a meeting with Indian oil minister Dharmendra Pradhan in New Delhi. On Jan. 1, OPE
Saudi oil minister Khalid al-Falih says no OPEC+ output policy change until June Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-10  Authors: heinz-peter bader
Keywords: news, cnbc, companies, minister, khalid, saudi, change, alfalih, supply, output, policy, falih, oil, cuts, opec, production


Saudi oil minister Khalid al-Falih says no OPEC+ output policy change until June

Saudi oil minister Khalid al-Falih said on Sunday it would be too early to change OPEC+ output policy at the group’s meeting in April and that China and the U.S. would lead healthy global demand for oil this year.

The Organization of the Petroleum Exporting Countries and its allies such as Russia — known as the OPEC+ alliance — will meet in Vienna on April 17-18, with another gathering scheduled for June 25-26.

Falih said the group was unlikely to change its output policy in April and if required would make adjustments in June.

“We will see what happens by April, if there is any unforeseen disruption somewhere else, but barring this I think we will just be kicking the can forward,” Falih said.

“We will see where the market is by June and adjust appropriately,” Falih said after a meeting with Indian oil minister Dharmendra Pradhan in New Delhi.

OPEC member United Arab Emirates (UAE) said on Sunday it would continue to meet its obligations to cut supply under the producer agreement.

“We will continue to deliver on the OPEC & Non-OPEC commitment for voluntary production adjustments until the global market is re-balanced,” Minister of Energy and Industry Suhail al-Mazrouei said on Twitter.

On Jan. 1, OPEC+ began new production cuts to avoid a supply glut that threatened to soften prices. The group agreed to reduce supply by 1.2 million barrels per day for six months.

Sources recently said the most likely scenario is that the current supply cuts will be extended in June but much depends on the extent of U.S. sanctions on OPEC members Iran and Venezuela.

OPEC’s share of the cuts is 800,000 bpd, to be delivered by 11 members — all except Iran, Libya and Venezuela, which are exempt. The baseline for the reduction was in most cases their output in October 2018.

For Saudi Arabia, the world’s top oil exporter, Falih said output in April was expected to remain at this month’s level of 9.8 million bpd.

“Aramco is finalizing their April allocations today or tomorrow so we will know more on Monday. But my expectation is that April is going to be pretty much like March.”


Company: cnbc, Activity: cnbc, Date: 2019-03-10  Authors: heinz-peter bader
Keywords: news, cnbc, companies, minister, khalid, saudi, change, alfalih, supply, output, policy, falih, oil, cuts, opec, production


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Goldman Sachs preaches caution on commodities: ‘They are no longer significantly undervalued’

Goldman Sachs is warning that this year’s commodity price rally may be running out of steam, so investors should tread carefully and monitor data before going long oil and metals. Commodities have bounced 12 percent this year after a steep sell-off in the final months of 2018. At this point, Goldman analysts say fundamental supply and demand will have to drive further gains — and they’re not yet sure whether the figures will underwrite a further rally. “The risk-reward of being outright long com


Goldman Sachs is warning that this year’s commodity price rally may be running out of steam, so investors should tread carefully and monitor data before going long oil and metals. Commodities have bounced 12 percent this year after a steep sell-off in the final months of 2018. At this point, Goldman analysts say fundamental supply and demand will have to drive further gains — and they’re not yet sure whether the figures will underwrite a further rally. “The risk-reward of being outright long com
Goldman Sachs preaches caution on commodities: ‘They are no longer significantly undervalued’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: tom dichristopher, kham
Keywords: news, cnbc, companies, oil, opec, supply, undervalued, months, market, long, goldman, commodities, preaches, longer, point, sachs, significantly, output, caution


Goldman Sachs preaches caution on commodities: 'They are no longer significantly undervalued'

Goldman Sachs is warning that this year’s commodity price rally may be running out of steam, so investors should tread carefully and monitor data before going long oil and metals.

Commodities have bounced 12 percent this year after a steep sell-off in the final months of 2018. At this point, Goldman analysts say fundamental supply and demand will have to drive further gains — and they’re not yet sure whether the figures will underwrite a further rally.

Goldman acknowledges that the market has moved past temporary drags like the longest-ever U.S. government shutdown, while China is embarking on a more expansionist policy. But the bank is still preaching caution.

“While this looks like it would point to even more upside for commodities, we believe that commodities have now reached a level where they are no longer significantly undervalued relative to their current fundamentals,” the investment bank’s commodity analysts said in a research note Monday.

“The risk-reward of being outright long commodities is therefore less compelling now compared to a few months ago, and we recommend a neutral portfolio position in commodities.”

In the oil market, Goldman believes demand is holding up despite gloomy forecasts. On the supply side, the bank says Saudi Arabia is taking a “shock and awe” approach to cutting output, while production in Venezuela and Iran is bound to fall further as the two OPEC members remain under U.S. sanctions.

That could push Brent crude oil futures toward $70-$75 in the near term, but Goldman sees prices slipping in the second half of 2019 on an anticipated increase in output from OPEC countries and U.S. drillers.


Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: tom dichristopher, kham
Keywords: news, cnbc, companies, oil, opec, supply, undervalued, months, market, long, goldman, commodities, preaches, longer, point, sachs, significantly, output, caution


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Qualcomm rolls out 5G chips for cars, PCs and home broadband

Qualcomm Inc on Monday announced 5G networking chips for a range of applications beyond smart phones, aiming to bolster a business that has lost Apple Inc as a major customer and faces unprecedented levels of competition. Qualcomm chips will supply the 5G connectivity in devices such as Samsung Electronics Co Ltd’s Galaxy Fold smart phone. And MediaTek Inc, Samsung and Huawei Technologies Co Ltd have all announced plans to make 5G chips, with Samsung and Huawei both planning to use the chips in


Qualcomm Inc on Monday announced 5G networking chips for a range of applications beyond smart phones, aiming to bolster a business that has lost Apple Inc as a major customer and faces unprecedented levels of competition. Qualcomm chips will supply the 5G connectivity in devices such as Samsung Electronics Co Ltd’s Galaxy Fold smart phone. And MediaTek Inc, Samsung and Huawei Technologies Co Ltd have all announced plans to make 5G chips, with Samsung and Huawei both planning to use the chips in
Qualcomm rolls out 5G chips for cars, PCs and home broadband Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-25  Authors: justin sullivan, getty images
Keywords: news, cnbc, companies, rolls, chips, 5g, samsung, supply, pcs, phones, mobile, business, qualcomm, broadband, cars, announced, networks


Qualcomm rolls out 5G chips for cars, PCs and home broadband

Qualcomm Inc on Monday announced 5G networking chips for a range of applications beyond smart phones, aiming to bolster a business that has lost Apple Inc as a major customer and faces unprecedented levels of competition.

San Diego-based Qualcomm is the world’s biggest supplier of mobile phone chips and has told investors it expects a big boost from 5G networks, which will start rolling out this year and feature higher speeds than current 4G networks. Qualcomm chips will supply the 5G connectivity in devices such as Samsung Electronics Co Ltd’s Galaxy Fold smart phone.

But Qualcomm faces challenges in its mobile chip business, with Apple selecting Intel Corp alone to connect its iPhones released last year to mobile data networks. And MediaTek Inc, Samsung and Huawei Technologies Co Ltd have all announced plans to make 5G chips, with Samsung and Huawei both planning to use the chips in some models of their own phones, eating into potential business for Qualcomm.

At the Mobile World Congress event in Spain on Monday, Qualcomm announced its plans to get its 5G chips into other markets beyond phones. Qualcomm said it working with Japanese e-commerce retailer Rakuten Inc’s mobile division to supply 5G chips for networking gear the retailer is rolling out in Japan.


Company: cnbc, Activity: cnbc, Date: 2019-02-25  Authors: justin sullivan, getty images
Keywords: news, cnbc, companies, rolls, chips, 5g, samsung, supply, pcs, phones, mobile, business, qualcomm, broadband, cars, announced, networks


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Saudi Arabia’s oil deal with Russia is now ‘more fragile than ever,’ analyst says

If achieved it would mean that since the December, Saudi Arabia has become responsible for 70 percent of the total OPEC+ target. The slow pace to cuts from Russian oil producers drew criticism from Saudi Arabia’s Energy Minister Khalid al-Falih, who told CNBC in January that Moscow had moved “slower than I’d like.” During 2018, oil prices were dragged lower by increasing U.S. shale supply and fears over global demand. Oil prices have steadily edged higher since the OPEC+ promise to cut supply an


If achieved it would mean that since the December, Saudi Arabia has become responsible for 70 percent of the total OPEC+ target. The slow pace to cuts from Russian oil producers drew criticism from Saudi Arabia’s Energy Minister Khalid al-Falih, who told CNBC in January that Moscow had moved “slower than I’d like.” During 2018, oil prices were dragged lower by increasing U.S. shale supply and fears over global demand. Oil prices have steadily edged higher since the OPEC+ promise to cut supply an
Saudi Arabia’s oil deal with Russia is now ‘more fragile than ever,’ analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: david reid, fayez nureldine, afp, getty images
Keywords: news, cnbc, companies, producers, arabias, arabia, cut, analyst, russia, russian, deal, saudi, opec, supply, fragile, oil, prices


Saudi Arabia's oil deal with Russia is now 'more fragile than ever,' analyst says

A rolling oil pact between Russia and Saudi Arabia which seeks to support prices by reducing output looks to be on shaky ground with only the Arab nation appearing to fulfil its promises.

Late last year, OPEC producing countries, and non-OPEC producers, led by Russia, agreed to cut supply by 1.2 million barrels per day(bpd), an arrangement known as OPEC+.

Saudi Arabia agreed to account for the bulk of OPEC nation cuts and has confirmed it will drop its crude oil production by a further 400,000 barrels per day to 9.8 million b/d in March. If achieved it would mean that since the December, Saudi Arabia has become responsible for 70 percent of the total OPEC+ target.

In turn, Russia was set to account for the greater share of non-OPEC cuts, but from October to the beginning of February had only decreased output by 47,000 barrels per day.

The slow pace to cuts from Russian oil producers drew criticism from Saudi Arabia’s Energy Minister Khalid al-Falih, who told CNBC in January that Moscow had moved “slower than I’d like.”

That barb led to a response from Russian Energy Minister Alexander Novak who said at the beginning of February that Russia was “completely fulfilling its obligations in line with earlier announced plans to gradually cut production by May this year.”

During 2018, oil prices were dragged lower by increasing U.S. shale supply and fears over global demand. President Donald Trump has repeatedly criticized OPEC on its decision making, claiming prices should be lower.

In November 2018 Trump tweeted that he hoped OPEC wouldnot cut oil output.

On Tuesday International benchmark Brent crude was trading at $66.39 a barrel at around 12 p.m. London time (7 a.m ET), down around 0.1 percent, while West Texas Intermediate (WTI) stood at $56.09, almost 1 percent higher.

Oil prices have steadily edged higher since the OPEC+ promise to cut supply and are now sitting at levels not seen since November 2018.

But Torbjorn Soltvedt, principal MENA politics analyst at Verisk Maplecroft, said in a note Tuesday that any end to Russian-Saudi coordination would likely add significant downward pressure on prices.

“Although our base case is still that Riyadh and Moscow find a compromise to extend the agreement, the pact is now looking more fragile than ever,” said Soltvedt.

The political analyst added that to save the pact he expected Saudi Arabia may even have to settle for “low levels of (Russian) compliance to save the pact.”

Verisk Maplecroft estimate that Riyadh needs $80 a barrel in order to fund its 2019 budget while in turn, Russian President Vladimir Putin has claimed that $60 is enough to satisfy Moscow’s needs.

The next meeting of OPEC and non-OPEC oil producers takes place in mid-April.


Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: david reid, fayez nureldine, afp, getty images
Keywords: news, cnbc, companies, producers, arabias, arabia, cut, analyst, russia, russian, deal, saudi, opec, supply, fragile, oil, prices


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Saudi Arabia’s oil deal with Russia is now ‘more fragile than ever,’ analyst says

If achieved it would mean that since the December, Saudi Arabia has become responsible for 70 percent of the total OPEC+ target. The slow pace to cuts from Russian oil producers drew criticism from Saudi Arabia’s Energy Minister Khalid al-Falih, who told CNBC in January that Moscow had moved “slower than I’d like.” During 2018, oil prices were dragged lower by increasing U.S. shale supply and fears over global demand. Oil prices have steadily edged higher since the OPEC+ promise to cut supply an


If achieved it would mean that since the December, Saudi Arabia has become responsible for 70 percent of the total OPEC+ target. The slow pace to cuts from Russian oil producers drew criticism from Saudi Arabia’s Energy Minister Khalid al-Falih, who told CNBC in January that Moscow had moved “slower than I’d like.” During 2018, oil prices were dragged lower by increasing U.S. shale supply and fears over global demand. Oil prices have steadily edged higher since the OPEC+ promise to cut supply an
Saudi Arabia’s oil deal with Russia is now ‘more fragile than ever,’ analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: david reid, fayez nureldine, afp, getty images
Keywords: news, cnbc, companies, supply, opec, prices, oil, russian, russia, fragile, producers, deal, analyst, cut, arabias, saudi, arabia


Saudi Arabia's oil deal with Russia is now 'more fragile than ever,' analyst says

A rolling oil pact between Russia and Saudi Arabia which seeks to support prices by reducing output looks to be on shaky ground with only the Arab nation appearing to fulfil its promises.

Late last year, OPEC producing countries, and non-OPEC producers, led by Russia, agreed to cut supply by 1.2 million barrels per day(bpd), an arrangement known as OPEC+.

Saudi Arabia agreed to account for the bulk of OPEC nation cuts and has confirmed it will drop its crude oil production by a further 400,000 barrels per day to 9.8 million b/d in March. If achieved it would mean that since the December, Saudi Arabia has become responsible for 70 percent of the total OPEC+ target.

In turn, Russia was set to account for the greater share of non-OPEC cuts, but from October to the beginning of February had only decreased output by 47,000 barrels per day.

The slow pace to cuts from Russian oil producers drew criticism from Saudi Arabia’s Energy Minister Khalid al-Falih, who told CNBC in January that Moscow had moved “slower than I’d like.”

That barb led to a response from Russian Energy Minister Alexander Novak who said at the beginning of February that Russia was “completely fulfilling its obligations in line with earlier announced plans to gradually cut production by May this year.”

During 2018, oil prices were dragged lower by increasing U.S. shale supply and fears over global demand. President Donald Trump has repeatedly criticized OPEC on its decision making, claiming prices should be lower.

In November 2018 Trump tweeted that he hoped OPEC wouldnot cut oil output.

On Tuesday International benchmark Brent crude was trading at $66.39 a barrel at around 12 p.m. London time (7 a.m ET), down around 0.1 percent, while West Texas Intermediate (WTI) stood at $56.09, almost 1 percent higher.

Oil prices have steadily edged higher since the OPEC+ promise to cut supply and are now sitting at levels not seen since November 2018.

But Torbjorn Soltvedt, principal MENA politics analyst at Verisk Maplecroft, said in a note Tuesday that any end to Russian-Saudi coordination would likely add significant downward pressure on prices.

“Although our base case is still that Riyadh and Moscow find a compromise to extend the agreement, the pact is now looking more fragile than ever,” said Soltvedt.

The political analyst added that to save the pact he expected Saudi Arabia may even have to settle for “low levels of (Russian) compliance to save the pact.”

Verisk Maplecroft estimate that Riyadh needs $80 a barrel in order to fund its 2019 budget while in turn, Russian President Vladimir Putin has claimed that $60 is enough to satisfy Moscow’s needs.

The next meeting of OPEC and non-OPEC oil producers takes place in mid-April.


Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: david reid, fayez nureldine, afp, getty images
Keywords: news, cnbc, companies, supply, opec, prices, oil, russian, russia, fragile, producers, deal, analyst, cut, arabias, saudi, arabia


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