OPEC+ Said to Weigh Bigger Production Cut

Brent crude, the European benchmark, was trading just above $65 a barrel while USA crude futures stood just below $56 - its lowest mark for 12 months. The oil cartel expects oil demand to grow by 1.29 million barrels per day in 2019, down 70,000 bpd from its projection last month.

However, Russia's key partner in the production cut deal, Saudi Arabia, has expressed concern over the oil price slump in the past month.

President Vladimir Putin said he discussed the price of oil with USA counterpart Donald Trump when they met in Paris briefly on Sunday, adding that Russian Federation is happy with current prices.

The BSE oil and gas index was among the top sectoral gainers rising 2.16% or 292 points to 13,852 level.

Oil struggled to find its footing on Wednesday after plunging 7 percent the previous session, with surging supply and the spectre of faltering demand scaring off investors.

Fearing a renewed glut like in 2014, when prices crashed under the weight of oversupply, the Organization of the Petroleum Exporting Countries (OPEC) is discussing supply cuts.

The reason being that the sanction coincided with when OPEC was duly guided to monitor oil supply quota allocated to countries that are its members, while at the sametime, placed a ceiling on the barrels of oil produced daily by some members, including Nigeria.

"It is becoming clearer that as we move closer towards 2019, the market will see a sizeable surplus at least over the first half of 2019", ING said.


Financial firms hedging the risk incurred by selling put options to oil producers generated added downward pressure when prices fell toward option strikes, Goldman Sachs said in a note.

Global benchmark Brent crude oil futures were down 9 cents at.38 per barrel.

The IEA also cut its forecast for demand for OPEC crude by 300,000 bpd in 2019.

What has been made apparent by OPEC and the IEA is that oil demand growth is slowing, while oil supply, most notably from the U.S. is rising to record levels at a rapid rate.

Much of the expectations of the supply cuts were driven by earlier comments from Khalid Al-Falih, energy minister for Saudi Arabia, who told media that producers need to cut about 1 million barrels per day (bpd) from October production levels.

Oil rose, ending its longest string of declines amid strengthening signals that OPEC and allied producers are considering production cuts as soon as next year. It was just a little over a month ago when the price of oil spiked at $76 a barrel around the first of October.

Meanwhile, in the USA, crude inventories rose by 10.27 million barrels last week, while gasoline and distillate supplies declined, according to a report from the Energy Information Administration on Thursday.


Popular
  • Netanyahu calls Paris conversation with Putin 'very important'

    Netanyahu calls Paris conversation with Putin 'very important'

    President Donald Trump attend a First World War armistice anniversary ceremony at the Arc de Triomphe in Paris on November 11. Some took the opportunity to mock Trump's continued chummy relationship with the Russian leader. "You're very smart people".
    Election 2018: GOP holds Senate, Democrats move closer in House

    Election 2018: GOP holds Senate, Democrats move closer in House

    He reiterated that he was reviewing Interior Secretary Ryan Zinke job as well, following numerous reports of ethical violations. Shortly thereafter, however, it was announced that Attorney General Jeff Sessions had been forced out.
    Google Pixel Slate pre-orders begin ahead of apparent November 22 release

    Google Pixel Slate pre-orders begin ahead of apparent November 22 release

    The Pixel Slate most people will choose is the $800 Core m3 variant, which also has 8GB of RAM and 64GB of storage. However, the APK version is available for Pixel series users to get a taste of what the Night Sight mode brings.
  • Ferocious winds whip California fires as death toll rises to 31

    Ferocious winds whip California fires as death toll rises to 31

    The entire town of Paradise was wiped out and yesterday, hot and dry "devil winds" kicked up in fire-ravaged Southern California . The National Weather Service warned early Monday that "dangerous fire weather" was expected to continue in California.
    Florida Just Voted for a Major Voting Rights Win

    Florida Just Voted for a Major Voting Rights Win

    The voters apparently listened , passing Amendment 4 , and re-enfranchising some 1.4 million potential voters. This added to Florida's already lengthy wait list as the state now has a backlog of more than 10,000 cases.

    New Mac mini packs a huge punch

    Apple announced a new Mac Mini at the Apple event on Tuesday, the biggest update the mini desktop has ever received. The faster option is a 3.2GHz 6-core 8th-generation Intel Core i7 , with Turbo Boost up to 4.6GHz for $300 more.
  • Fly Jamaica plane carrying dozens of Canadians makes emergency landing in Guyana

    Fly Jamaica plane carrying dozens of Canadians makes emergency landing in Guyana

    Invor Bedessee, a Toronto resident, took to social media shortly after the incident to post an account of his flight. Fly Jamaica said the airline is now making arrangements to fly the plane's passengers out of Guyana.
    Trump Uses False Accusation Against Brett Kavanaugh To Inflame His Base

    Trump Uses False Accusation Against Brett Kavanaugh To Inflame His Base

    I saw it online. "I was angry and I sent it out", the woman told investigators, according to Grassley's letter. Grassley said looking into Munro-Leighton's claims diverted resources on a time-sensitive manner.
    Tesla Model 3 to arrive in the United Kingdom  in RHD mid 2019

    Tesla Model 3 to arrive in the United Kingdom in RHD mid 2019

    Tesla had disclosed on September 18 that it received a "voluntary request" for documents from the Justice Department. Orders for the company's Model 3 in Europe and China would be taken before the end of this year, Tesla said .
  • NBA Twitter explodes as Jimmy Butler heads to Philadelphia

    NBA Twitter explodes as Jimmy Butler heads to Philadelphia

    Butler told the Timberwolves in September he wanted to be traded, and it took weeks for the team to find a deal it would accept. The 76ers are shipping Dario Saric , Jerryd Bayless , Robert Covington and a 2022 2nd round pick in exchange.
    Red Dead Redemption 2 Is The Third Biggest Entertainment Launch In History

    Red Dead Redemption 2 Is The Third Biggest Entertainment Launch In History

    Red Dead Redemption 2 players will want to grab the legendary bear pelt in order to craft an awesome outfit for Arthur Morgan. Red Dead Online is planned for launch in November 2018, initially as a public beta, with more news to come soon.
    Sec. Mattis Has Approved Sending More American Troops to the Southern Border

    Sec. Mattis Has Approved Sending More American Troops to the Southern Border

    The Pentagon approved a request for additional troops at the southern border, likely to total several hundred , to help the U.S. In April, frustrated by lack of progress on the wall, Trump ordered the National Guard to help secure the border.

CONNECT