Oil rises 1% on settlement amid fears of supply shortages

[yota691]

Academic: The possibility of investing surpluses in resuming suspended projects

21/1/2018 12:00 am  Baghdad / Shukran al-Fatlawi The professor of monetary policy at the College of Management and Economics said that the rise in oil prices is important and positive, as it will reduce the burden of the federal budget deficit, as well as reduce the country's borrowing to international organizations such as the IMF and the World Bank. The resumption of investment projects was  expressed by academic d. Falah Thwaini expressed the hope that the exploitation of the resulting surplus in the price increase in the resumption of investment projects that have stopped work, which is not less than the implementation rate of 50 percent, in particular the agricultural and industrial projects   medium.  "It is possible to repay the debt of the country through the exploitation of surpluses resulting from the rise, especially after OPEC announced on Saturday, the rise in the price of the OPEC basket daily to more than $ 66 a   barrel. The growth of global demand and explained that oil prices have not reached this level since January 2014, as a result of the extension of Russia and other countries cut production, which was concluded in 2016, to help support oil prices, which fell below $ 50 a barrel. The Organization of the Petroleum Exporting Countries (OPEC) said on Saturday that the Organization's average price of 62.06 dollars per barrel in December, expected global oil demand growth in 2018 unchanged at 3.4 percent.  Crude oil prices hit a four-year high of $ 70 a barrel and oil prices have not reached that level since January 2014, but the rise came after OPEC members said they would continue to curb output. FAO Monthly Report "The average price of the OPEC basket for December reached 62.06 dollars a barrel, which represents an increase of 29 percent or 11.67 dollars from last year," the organization said in its monthly report, which was seen by the "morning", noting that "Brent prices gained The other by 1.23 percent to an average of these prices to 64.09 dollars, while the average price of West Texas Intermediate crude Nymex $ 57.95 per barrel   . Suhail Al Mazrouei, the UAE's oil minister and OPEC president, said OPEC was committed to cutting production by the end of the year. The cartel of the Organization of the Petroleum Exporting Countries (OPEC) includes the following: Sahara (Algeria), Gerasol (Angola), Orient (Ecuador) , Kuwait (Kuwait), Sider (Libya), Bonnie Light (Nigeria), Qatar Marin (Qatar), Arab Light (Qatar), Iran (Islamic Republic of) Saudi Arabia), Morban (United Arab Emirates) and Miri (Venezuela).

[pokerplayer]

© Hasan Jamali / Associated Press   The opinions in this article are the author's, as published by our content partner, and do not necessarily represent the views of MSN or Microsoft.

After three years of gloom, the number 100 is finally starting to resurface in the forecasts of market analysts.

 

Quotes in the article

Microsoft Corp

MSFT

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90.00

-0.10

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A slump in new production outside the U.S. shale patch in 2019 could help to send Brent crude briefly back above $100 a barrel next year, according to London-based consultancy Energy Aspects. 

The International Energy Agency also has a 100 number in its latest outlook, published Friday. While it doesn't forecast prices and doesn't yet look as far ahead as 2019, it sees global demand exceeding 100 million barrels a day for the first time in the fourth quarter of this year.

Oil's slump is over -- hail the return of triple-digit crude! Well, maybe, briefly.

OPEC ministers and friends meeting in Doha today to assess their output deal would be wise not to get too carried away.

The IEA, as I noted last week, is much less bullish about demand growth in the coming months than other pundits. For some, this raises the risk that the world's most-watched forecast significantly underestimates oil use and, as a result, the speed of oil market rebalancing and the upward pressure on prices.

Broad-based economic recovery is setting the world up for demand growth of 1.7 million barrels a day in 2018, and there's a chance that it could be as high as 2 million barrels, according to Energy Aspects. Certainly there's a lot of expansion about -- the World Bank has raised its global GDP growth forecast for this year to 3.1 percent from the 2.9 percent it projected in June. With strong economic momentum in almost every country and region, there is "no real drag on oil demand growth," Energy Aspects said Jan. 15.

© Bloomberg Bounding Ahead

But there could be one in the works. Rising prices can have a chilling effect on demand growth, and benchmark crude prices have risen more than 55 percent since their rally started in June. End-user retail prices are feeling this.

U.S. gasoline and diesel are both the most expensive they have been at this time of year since 2014 and, in contrast to the normal seasonal pattern, pump prices are already rising. The same is true in Europe.

© Bloomberg Dearer Gas

Strong demand growth in the developed countries of North America and Europe in the first half of 2017 was "largely attributable to lower prices," the IEA says. Drivers are unlikely to benefit from similar price moves this year.

What happens to car owners in rich nations isn't the only source of strain on demand. Many developing countries took the opportunity of the sharp fall in prices to reduce subsidies on oil products, which could amplify the impact of higher crude on what end users pay.

And some less-developed countries are shifting to natural gas from oil. The IEA sees 540,000 barrels a day of demand for gasoil, fuel oil and crude displaced by gas in five non-OECD countries since 2014. Saudi Arabia has also cut its direct crude use for power generation by around 100,000 barrels a day in the past two years. The displacement theme will continue this year.

The draw on global stockpiles should resume in the second quarter, even amid rising OPEC output, according to Energy Aspects.

The IEA also sees a big rise in oil production this year, including "explosive growth" in the U.S. With the pickup in non-OPEC supply exceeding the increase in demand, it sees the world's need for OPEC production falling by around 600,000 barrels a day compared with last year, to a level below last month's output. The implication of that for prices is clear -- if the IEA is right, the possibility that oil reaches $100 a barrel is remote.

© Bloomberg Shrinking Market

Higher prices may yet clip the wings of the oil demand growth that OPEC and friends need. They should not let the sweet smell of the success they have had so far go to their heads in Doha.

--Bloomberg's Elaine He helped with charts.

This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

Julian Lee is an oil strategist for Bloomberg. Previously he worked as a senior analyst at the Centre for Global Energy Studies.

To contact the author of this story: Julian Lee in London at jlee1627@bloomberg.net.

 

To contact the editor responsible for this story: Jennifer Ryan at jryan13@bloomberg.net.

©2018 Bloomberg L.P.

[Half Crazy Runner]

Thanks pokerplayer!  Never thought I’d see the day when I’d be cheering the price of oil at $100  😆👍🏻

[Pitcher]

http://www.business-standard.com/article/international/here-s-why-opec-s-global-oil-cuts-might-result-in-sharp-price-spikes-118012501766_1.html

[murd11]

Yes, gas has gone up 9 cents a litre in 2 days on the island

[yota691]

Last Updated on Monday, 13 Jumada I 1439 H - January 29, 2018

Iraq confirms its commitment to the OPEC agreement, despite the lifting of export capabilities

 

Monday, 13 Jumada I 1439 H - January 29, 2018

LONDON (Reuters)

Iraqi Oil Minister Jabbar al-Allaibi said on Monday that his country would abide by OPEC's agreement to cut output, although it is working hard to increase its oil export capacity from the north and south.

Al-Luaibi told a conference in London that the total production capacity of Iraq amounted to five million barrels per day, including 4.6 million barrels per day from the south.

Iraq is the second largest producer of the Organization of the Petroleum Exporting Countries (OPEC) after Saudi Arabia.

Iraq has tied its production with OPEC cutting its supply by 1.2 million barrels per day under an agreement with Russia and other producers outside the organization until the end of this year.

"Iraq has made it clear every time and in all its effectiveness that it will abide by OPEC's declarations in a good and satisfied spirit," al-Luaibi said.

He added that Iraq hoped to increase production from Kirkuk oil fields in the north of the country to more than twice with the help of BP.

While exports from the south are at record levels, production in northern Iraq remains low after falling in mid-October when Iraqi forces regained control of oil fields from Kurdish militants who have been there since 2014.

This has had an impact on increasing Iraq's commitment to OPEC-led supply cuts.

The minister said the oil market was improving with support from OPEC.

[Pitcher]

U.S. oil production surpassed 10 million barrels a day in November for the first time in nearly 50 years, a milestone that underscores the growing dominance of the U.S. oil industry.

While global oil exporters once dismissed shale as a flash in the pan, the industry has emerged more efficient than ever from a three-year oil price rout and is poised to take advantage of prices that are at their highest levels since late 2014.

In November, production rose to 10.038 million barrels a day, 4% more than the previous month, according to the U.S. Energy Information Administration. That is just shy of the monthly record of 10.044 million barrels a day in November of 1970.

The resurgence of the U.S. shale industry is the latest turn in the tug of war between shale producers and the Organization of the Petroleum Exporting Countries, which last year coordinated an output cut with other major exporters, including Russia. The group has been trimming about 2% of global oil supply in a bid to work off a glut and raise prices.

The efforts have paid off: prices have surged this year amid tightening supplies and world-wide economic growth that stirred surprisingly strong demand.

[Pitcher]

Oil rose for the first time this week as a surprise decline in U.S. gasoline supplies helped ease concerns about lackluster demand.

 

 

Futures closed 0.4 percent higher in New York. American gasoline inventories fell by 1.98 million barrels last week, the first draw since early November, the Energy Information Administration said. While crude stockpiles rose the most in almost a year, that came after a record streak of declines. Plus, increases were on the horizon due to seasonal refinery maintenance.

 

 

“People had expected a crude build,” Joseph Bozoyan, a portfolio manager at Manulife Asset Management LLC in Boston, said by telephone. At the same time, “gasoline showed a pretty healthy decline, which alleviated some of the fears about demand being weak.”

 

 

Contributing to the expansion in stored supplies of crude was a 41,000-barrel increase in domestic daily production last week, as well as the biggest tranche of imported oil since August, the government report showed.

 

 

The streak of crude withdrawals “had to be broken at some point,” Rob Thummel, who helps manage $16 billion in energy assets at Tortoise Capital Advisors LLC, said by telephone. “The positive surprise was the gasoline draw. That’s helping to support prices a little bit.”

Futures slumped earlier as booming production from shale fields stirs fears that a supply glut may start to form again.

A separate EIA report showed that production in November surged above 10 million barrels a day for the first time in four decades. Adding to further supply concerns is rising output from the Organization of Petroleum Exporting Countries in January, according to consultant JBC Energy.

Click here for a story on the latest milestone for U.S. oil production

West Texas Intermediate for March delivery rose 23 cents to settle at $64.73 a barrel on the New York Mercantile Exchange, after dropping as much as 1.3 percent.

Brent for March settlement, which expires Wednesday, added 3 cents to end the session at $69.05 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude traded at a premium of $4.32 to WTI. The more-active April contract rose 37 cents to settle at $68.89.

Front-month gasoline futures, which expire Wednesday, added 0.6 percent to $1.9075 a gallon.

A weakening of the dollar also gave oil a boost as that typically makes commodities more appealing to investors. The Bloomberg Dollar Spot Index, a gauge of the currency against 10 major peers, dropped as much as 0.5 percent.

Oil-market news:

• OPEC and allied producers “are looking now at a long-term cooperation mechanism that will be permanent,” Kuwait Oil Minister Bakheet Al-Rashidi told reporters in Kuwait City.
• The biggest U.S. refiners probably boosted profitability during the final three months of 2017.
• BHP Billiton Ltd., seeking to accelerate the sale of its U.S. shale unit, is prepared to offer the assets in as many as seven packages, including three in the prized Permian Basin, according to people with knowledge of the producer’s plans.

[Butifldrm]

GOLDMAN SACHS: Now is the best time in a decade to invest in commodities — here's our top trade

Akin Oyedele

Business InsiderFebruary 1, 2018

 

 

 

 

View photos

 

Iraq oil worker

More

AP Photo/Nabil al-Jurani

 

• It's the best time in a decade to invest in commodities, according to Goldman Sachs.
• The firm raised their six-month price targets on Brent crude oil and copper amid less supply, more demand, and lower inventories.
• Their bullish outlook accounts for last year's rally, which has helped producers clean up their balance sheets and invest in future growth. 

There's been no better time to invest in commodities since 2004-2008, according to Goldman Sachs. 

Following a resurgence in oil prices last year, the firm's commodity strategists raised their price forecasts for the next six months.   

"We believe the outlook for commodities this year is simply a continuation of last year’s trend with a greater emphasis on EM ex-China, which will make the composition of already robust global growth more commodity intensive," said Jeffrey Currie, Goldman's head of global commodity research, in a note on Thursday. 

"With low and declining inventories in key commodity markets, we expect commodity price volatility will rise from the current historically low levels. Accordingly, we are initiating a new 2018 top trade and recommending a long 6-month call option on the S&P GSCI excess return index struck 5% out of the money. With a cost of 2.3%, the breakeven is a 7.3% return with a 4.4 to 1 expected payout based upon our 6-month return forecast of 15%."

Commodities have entered a positive feedback loop consisting of what Goldman calls the three R's: reflation, releveraging, and reconvergence. 

Most commodity prices including copper and crude oil performed well, or reflated, in 2017, supported by a weaker dollar, supply controls, and economic growth around the world. This has helped debt-laden producers reduce the number of bad loans they took and clean up their balance sheets, which allows "releveraging," Currie explained. Subsequently, emerging-market growth (even excluding China) has been able to catch up, or reconverge, with developed markets. 

This diagram from Currie succinctly explains the 3 R's:

View photos

 

Screen Shot 2018 02 01 at 9.19.42 AM

More

Goldman Sachs

"As long as commodity supply doesn’t break the positive feedback loop (which we don’t see happening until later this year), prices are likely to trend higher," Currie said. 

The positive loop between higher commodity prices, a weaker dollar, and growth in emerging markets "has historically created significant overshoots," Currie said.

"During the sell-off in commodity prices during the 2014-2016 period, this positive feedback loop was operating in the other direction: reinforcing lower commodity prices, a stronger dollar and weaker EM demand growth," he added.

Even with the memories of the 2014 oil crash still fresh, Goldman doesn't see the risk of a correction anytime soon. Currie's team said that's because rising interest rates typically hurt stocks and bonds, but not commodities because they are spot-priced, unlike other assets that are largely valued on future expectations. 

Additionally, Currie said investors who are underinvested in oil would look to buy any price dips, especially if the stock market gets wobbly. 

Goldman raised its six-month forecasts on Brent crude oil to $82 per barrel from $62 per barrel; it climbed to as high as $69.71 on Thursday. 

 

https://finance.yahoo.com/news/goldman-sachs-now-best-time-152800972.html

[yota691]

Where does Kuwait come from with $ 500 billion to fund its oil projects?

- 14 Hours Ago

 

 

KUWAIT: Kuwait's government plans to invest more than $ 500 billion in projects to boost oil and gas production capacity and refining activities in the period up to 2040, the government said yesterday.

KPC chief executive Nizar al-Adassani said at a forum on energy strategy that the corporation plans to implement a number of major projects to increase crude oil production to 4.75 million bpd by 2040.

"In order to achieve these goals, KPC plans to spend more than $ 114 billion in investments in the next five years and $ 394 billion in the years to 2040," he said in a speech to the forum in Kuwait.

$ 21.7 billion deficit expected in the next budget to continue recording the deficit for the fourth year in a row and 
raised many questions to experts and analysts because of the size of the large capacity of the institution to attract these investments in light of the decline in oil prices, in addition to the broad period of implementation in light of the rapid shifts in the nature of supply energy.

Kuwait currently has a production capacity of about 3.1 million barrels per day (bpd), which does not include co-production capacity with Saudi Arabia from the Khafji and Al-Wafra fields in the neutral zone, which has been closed since October 2014 and is up to 250,000 bpd.

Kuwait currently exports about 2.8 million barrels under its commitment to the agreement to reduce production between producers from within OPEC and abroad, which has been in place since the beginning of last year.

Nizar al-Adassani: Increasing gas production and refining capacity and production of 4 million barrels per day by 2020 
Adassani stressed that Kuwait intends to raise the capacity of crude oil production to 4 million barrels per day by 2020, in addition to the implementation of other projects to increase gas production and refining capabilities significantly.

The announcement of the ambitious plans after the announcement of the Kuwaiti government for the next budget, which begins early April, which predicted a record deficit of 21.7 billion dollars, and continue to record a deficit in the budget for the fourth year in a row.

In recent years, Kuwait has uncovered a large number of strategic infrastructure projects, but has been unable to implement most of them because of political controversy and lack of investment spending in the budget, which devours government subsidies and salaries about 73 percent of total spending.

Despite the government's repeated promises to carry out economic reforms to reduce the budget deficit, it announced this week it would not touch government subsidies and salaries in the next budget, amid political and popular resistance to austerity measures and spending cuts.

Meanwhile, borrowing from financial markets, especially local ones, accelerated when the Central Bank of Kuwait (CBK) announced on Tuesday the completion of the sale of $ 660 million in government treasury bills on behalf of the Ministry of Finance.

This will lead to a rise in government debt after last year's sovereign debt issues increased by 36 percent to about $ 44.2 billion, up $ 10.3 billion from the end of 2016.

The new budget data indicate that the government has dropped plans to tackle fiscal imbalances as it raised spending, revenue and expected deficits in return for easing its austerity plans.

More than 18 percent of spending will not be allocated to development projects, according to Al-Hafar, who confirmed that his country would not impose VAT or other taxes without the approval of the National Assembly.

Saudi Arabia and the United Arab Emirates have decided to impose a value-added tax as of the beginning of this year, while Kuwait has not disclosed any timetable for its implementation, although the agreement between the Gulf Cooperation Council states to be applied during the current year.

73 percent of budget spending goes to government subsidies and salaries and leaves little room for investment spending. 
Many Kuwaiti experts criticize government policies that have been devoted over decades to the rental economy, which relies exclusively on oil revenues to fund social programs and employ most Kuwaitis in state institutions.

On the other hand, Kuwait News Agency attributed the Kuwait Oil Company a statement issued on Tuesday on the formation of a fact-finding committee on the existence of suspicions of corruption in the activities of the company. She emphasized that she was fully transparent in her operations and contracts in all areas of her work, without giving details of the Committee's working mechanism.

Kuwaiti lawmaker Yussef al-Fadala had recently revealed corruption allegations hovering around a leader of the Kuwait Oil Company (KOC) about signing contracts worth $ 143.5 million for studies he said were useless.

Ahmed Al-Hamad, executive vice president of administrative and financial affairs at Kuwait Oil Company, said that the company will act in the next phase according to the results reached by the committee.

The Arabs of London

[yota691]

2018/02/05 (00:01 PM)   -   Number of readings: 144   -   Number (4128)

 

 

OPEC: 2018 .. a promising year for the rise in oil prices globally

 Baghdad / Range 
 

The biggest business banks expected OPEC's decisions to absorb surplus in the oil market, and then the price of a barrel near $ 80, and Goldman Sachi and Morgan Stanley put a new ceiling on oil prices this year.

The most important business banks reviewed their forecasts based on the index of the absorption of oil surplus in the market, as the latter issued its new forecast intersected in a fundamental order; is the recovery of oil prices for its vitality. The study included Goldman Sachs Group, Morgan Stanley and JPMorgan Chase & Company, which revised their forecasts for an upward trend in the barrel of oil, considering that OPEC cuts would contribute to the elimination of the surplus in the market and hence to price stability. 
OPEC, in coordination with some outside countries, especially Russia, agreed to reduce the production ceiling by 1.8 million barrels per day, of which 1.2 million barrels per day share of the Organization, and the agreement is valid until the end of 2018. What contributed to the impact on price levels, rates High commitment.
The Organization of the Petroleum Exporting Countries (OPEC) stressed that looking ahead, confirms that we are faced with the fact that the world needs all available energy sources, which requires increased investment in all resources in order to ensure adequate levels of supply in the future, Crude Oil. 
According to a recent report by the International Organization, there are currently proven reserves of crude oil exceeding 1.2 trillion barrels, noting that it is also important to recognize the progress achieved by the oil resources and many positive aspects of all of humanity and have affected the lives of billions of Humans around the world are hundreds of years old. 
The report said that without oil resources, humanity would not have been able to achieve economic growth and access to many forms of development and prosperity and the building of modern civilization.
The report added that "it is necessary for the oil industry to accelerate investment in order to reach the levels that provide and provide energy requirements for future generations," adding that the latest estimates confirm the need to inject new investments worth 10.5 trillion dollars in various fields of industry from now until the year 2040. 
The "historic declaration" on cooperation between producers in and outside OPEC is in the second year of serious application after a great success achieved in the first year, the report pointed out, stressing the importance of an effective framework for permanent development in order to achieve market stability. 
The price of Brent crude will reach $ 75 a barrel in the next three months and will rise to $ 82.50 in six months, analysts said. "The oil market is likely to be rebalanced within six months , A time closer than we expected. "
"The drop in excess stocks is accelerating by the end of 2017 due to demand growth, OPEC's heavy commitment, heavy maintenance and the collapse of Venezuelan production," they said. 
Goldman joined other banks such as Morgan Stanley and JPMorgan Chase & Co., where economic growth and output cuts led by the Organization of the Petroleum Exporting Countries helped boost prices. 
Morgan Stanley recently said Brent would reach $ 75 a barrel this year, while JPMorgan said it could rise to nearly $ 78 as oil markets tighten faster than expected. 
Brent crude for April delivery was 52 cents at $ 69.41 a barrel in London after rising earlier to $ 69.67. The global index reached $ 75 in late 2014.
Global demand for oil rose 1.6 million barrels per day (bpd), or about 1.5 percent last year, and UBS said it was expected to grow by 1.3 million bpd this year.

[yota691]

2GMT 16:35 2018 Monday , February 12 : Last Updated

America is close to becoming the world's largest producer of crude oil

Signs of a nightmare scenario prepared by OPEC for oil prices

Translated by Abdel-Hala Majid

• 
  Crude oil prices spur US oil recovery Crude oil prices spur US oil recovery Crude oil prices spur recovery in US production

 

LONDON (Reuters) - The recent surge in US oil production is likely to accelerate the United States' climb to the top of oil-producing countries, analysts predict. More importantly, half of the 2018 capoeus scenario, ie, increased oil production and slower demand growth, is already being achieved.

A recent wave of data released by the US Department of Energy showed that US production exceeded 10 million barrels per day for the first time since 1970.

The increase in production according to monthly data was an unprecedented increase. Production rose by 850,000 barrels per day between August and November, until the recovery of US shale oil production in 2014-2015 seems paltry. 

This means the United States is close to becoming the world's largest producer of crude oil and light crude oil, although it has not yet reached the site. But its production is equivalent to that of Saudi Arabia, which itself is close to Russia's 10.95 million bpd output.

On the other hand, analysts point out that the volume of production is not everything. And that Saudi Arabia and Russia export more of their production than the United States can export one day. They are ready to cut supplies to support the market and have been behind the price recovery on which oil shale companies depend to be productive.

Another important thing is that the worst fears of OPEC and its allies may have been achieved. The rise in crude oil prices is fueling a recovery in US production. The nightmare scenario is that the increase in oil production is consistent with slower demand growth due to higher prices.

There is little evidence of this happening. The economic outlook remains strong and should be a reason for another significant increase in demand for oil this year. But any signs of a drop in demand growth to less than 1.53 million bpd, which OPEC expects, will be the reason for OPEC's thinner ministers.

OPEC and the International Energy Agency (IEA) are due to publish new forecasts this week, but the agency now sees demand growth slowing as the increase in crude oil prices moves to consumers. And so there are those who say that the second half of the nightmare looms.

Elaph prepared this report by acting on Bloomberg. The original is published on the following link:

https://www.bloomberg.com/gadfly/articles/2018-02-09/donald-trump-s-stock-market-ignorance-charts

[yota691]

First Published: 2018-02-15

OPEC urges its members to build additional oil capacity

The UAE Energy Minister reveals the move of oil producers to draft a charter for a long-term alliance by the end of the year.

Middle East Online

OPEC and other producers are cutting production to support prices UAE and Saudi oil producers aim to draft a long-term alliance agreement by the end of this year, Energy Minister Suhail al-Mazroui told a local newspaper on Thursday. The Al-Mazroui also said OPEC is urging its members to build additional oil capacity to mitigate the impact of any price hikes this year because of the weakening of the dollar. OPEC and other producers are cutting output to support prices under an agreement that will expire at the end of 2018. Saudi Arabia said last month producers were aiming to continue cooperation beyond the end of this year. Al Mazrouei said that a long-term alliance was being drafted, but a draft framework could be approved and signed by all 24 countries before the end of the year. He gave no further details on the format of the framework. Al Mazrouei added that the organization is motivating all its members to build additional capacity. "This extra energy (to ensure) that if you have a large increase in demand or a problem in a country, you can compensate for that in the market and achieve a short and medium-term rebalancing of the market." Al Mazrouei's comments came a day after Saudi Arabia announced it planned to cut its oil production and exports next month to curb the surplus in stocks, which has been reflected in crude prices, as concerns over the surge in US production surged. The Saudi announcement follows a bleak outlook for the International Energy Agency (IEA) that has dimmed hopes of curbing oil supplies and restoring the market to its balance. The global supply of crude is likely to exceed demand this year in a way that could undermine producers' efforts to cut crude supplies. "Riyadh remains determined to work to reduce the surplus in oil stocks," said a spokesman for the Saudi Energy Ministry. "The volatility of markets is a common concern for producers and consumers alike, and the Kingdom is committed to reducing this volatility and reducing its negative impact." Rocky oil producers, especially in the United States, which have not been involved in the deal, are increasing their production in the hope of benefiting from higher crude prices, but this puts the delicate balance of the markets at risk. Saudi Energy Minister Khalid al-Falih said Wednesday he was confident that cooperation between OPEC countries and non-OPEC countries would stabilize oil markets. "I am confident that the high level of cooperation and coordination will continue to achieve the desired results," he said at a seminar on oil in Riyadh. He said it would be better for the Organization of the Petroleum Exporting Countries (OPEC) to keep the oil market with a slight shortage of supplies and hastily end the agreement to reduce production. He added that the organization and its allies outside the likes of Russia will need to consider in the coming months how to adjust the targets, including how to measure the average five years of oil stocks. OPEC should take into account stockpiles outside the Organization for Economic Cooperation and Development (OECD), floating stocks and oil being transported, he said.

[yota691]

OPEC: Level of commitment to the agreement to cut production 133% last month

 

OPEC Secretary-General Mohamed Barkindo

Arab and international Economy News Baghdad The Organization of the Petroleum Exporting Countries (OPEC) said on Monday that the Organization has recorded a level of commitment to agreed production reduction targets of 133 percent in January at the level of all participating countries from within and outside the organization . Barkindo said the level of commitment last year was 107 percent and that producers from within OPEC and from outside would hold technical meetings in June. Views 5   Date Added 02/19/2018

[DinarThug]

LINK

OPEC: Level of commitment to the agreement to cut production 133% last month

 

 

19th February, 2018

The Organization of the Petroleum Exporting Countries (OPEC) said on Monday that the Organization has recorded a level of commitment to agreed production reduction targets of 133 percent in January at the level of all participating countries from within and outside the organization .

Barkindo said the level of commitment last year was 107 percent and that producers from within OPEC and from outside would hold technical meetings in June.

[yota691]

Oil to hit $80 within six months — Goldman Sachs

By

 Bola Macaulay

 -

February 13, 2018

0

373

 

 

THE oil market has rebalanced as Brent will reach $82.50 a barrel within six months, Goldman Sachs, a leading global investment banking, securities and investment management firm that provides a wide range of financial services said.

Oil Goldman Sachs has held one of the most optimistic views on the re-balancing of the oil market and oil prices in the near term.

It sees the price of brent reaching $75 per barrel within three months, lifting its short-term oil price projection from the previous $62 forecast. “The rebalancing of the oil market has likely been achieved, six months sooner than we had expected,” the bank’s analysts said in a report.

“The decline in excess inventories was fast-forwarded in late 2017 by stellar demand growth, high Organisation of Petroleum Exporting Countries, OPEC’s compliance, heavy maintenance as well as collapsing Venezuela production,” Goldman noted. At the end of last year,

Goldman Sachs was more optimistic about the speed of the oil market rebalancing than many experts and other banks, and OPEC itself.

The investment bank expected that the global oil overhang would have cleared by the middle of 2018, accelerating OPEC’s exit from the production cut pact that is currently set to expire at the end of 2018.

“The oil re-balancing continued its progress through November,” thanks to factors including “stellar” oil demand growth, Goldman said in December.

Now Goldman has revised further up its global oil demand growth forecast, to reflect strong emerging market economies that will drive oil demand growth.

Expectations of robust oil demand growth also prompted JPMorgan to raise its forecast, seeing Brent prices averaging $70 this year, with a peak of $78 a barrel at some point in the first half, when strong demand will continue to push prices up.

[bostonangler]

Yota, this is huge for the Iraqi budgets... I know he is a ding a ling, but Dr. Clarke just wrote a big piece about oil, the economy and the dinar... All this, along with your other post about passing the budget is starting to look very interesting for all of us.

 

B/A

[10 YEARS LATER]

Unless Sachs has a hand in or is privy to a Future manipulative market _ im calling 

[Jaygo]

5 minutes ago, 10 YEARS LATER said:

Unless Sachs has a hand in or is privy to a Future manipulative market _ im calling 

 

Yep

[bostonangler]

I think Sachs has proven to be on the inside of many trades... JMHO

 

B/A

[Officiallytook]

 

[southbeach]

bump

[10 YEARS LATER]

THE LATEST NEWS FROM OIL PRICE dot COM  - Brent Crude is $ 65.64 at the time of this posting. 

 

https://oilprice.com

[danielchu]

The more they raise prices the more WE pump oil lowering it!!

[yota691]

With these actions Goldman Sachs prediction will miss the mark....

Oil falls with the dollar's rise and expectations of an increase in US production

 

 From 2018-02-21 at 11:48 (Baghdad time)

Follow - Mawazine News

Oil prices fell on Wednesday, affected by the rise of the dollar from the lowest level in three years recorded last week in addition to the expected increase in US crude production.

By 0755 GMT, the WTI crude futures contract was $ 61.19 a barrel, down 60 cents, or 1 percent, from the last settlement.

Brent crude futures were up 48 cents, or 0.7 percent, from the previous $ 64.77 a barrel.

Traders said the decline was the result of a dollar recovery that could affect demand for fuel as it increases the cost of oil imports denominated in US currency to countries using other currencies.

The dollar index, which tracks the performance of the greenback versus a basket of six major currencies, rose for a second day on Wednesday to recover from a three-year low struck last week.

The US Energy Information Administration is due to release weekly data for US production on Thursday.

The data will include US inventory numbers, which are expected to show an increase in crude inventories of 1.3 million barrels in the week ending Feb. 16, according to a Reuters poll.

Stocks of oil products, including gasoline and distillates, are expected to fall.