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Oil rises 1% on settlement amid fears of supply shortages


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 Arab and international


Economy News _ Baghdad

The oil markets are waiting for a meeting of the OPEC and other producers on Thursday and Friday at the headquarters of the Organization in the Austrian capital Vienna, to decide on the reduction of crude production or not in 2019, where ends in December the current agreement to reduce oil production between members of the Organization and independent producers, It began in early 2017.

The OPEC meeting is overshadowed by an oversupply of markets after their stability thanks to OPEC's agreement to cut crude output by 1.8 million bpd.

"If OPEC and other Russian-led producers agree, supplies will be reduced by between 1.4 million and 1.4 million bpd," the source said.

"OPEC's crude oil production has risen to record levels after production by Saudi Arabia and the UAE, as well as the Russian-led independents," the sources said, noting that all speculation suggests OPEC and producer output will be cut by 1.4 million bpd.

Since early October, most standard raw materials have lost about a third of their market value as the market has been hit by signs of oversupply, with production in the United States, Russia and OPEC increasing as the emerging global warming problem worsens. "He said.

Prices have fallen about 22% since the beginning of November, heading towards their biggest monthly loss since the peak of the global financial crisis in 2008.


Views 50   Date Added 12/02/2018

 
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The number of oil drilling platforms in the United States

:lol::lol::lol::lol::lol:

The number of oil drilling platforms in the United States
 

 30 November 2018 09:18 PM
Mubasher : The number of oil drilling platforms in the US rose this week, while natural gas platforms have fallen.

Data from Baker Hughes on Friday showed US oil drilling platforms rose by two platforms during the week ending today to record 887 platforms.

While the number of platforms for natural gas exploration in the United States by 5 platforms to 189 platforms.

By 6:05 pm GMT, the price of NYMEX crude for January delivery fell 0.6 percent to $ 51.14 a barrel.

Brent crude for January delivery fell 1.4% to $ 58.71 a barrel.

During the same period, the price of natural gas futures for delivery in January rose by 2.2% to 4.54 dollars per million British thermal units.

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https://www.google.com/amp/s/www.washingtonpost.com/amphtml/business/qatar-will-pull-out-of-opec-amid-tension-with-saudi-arabia/2018/12/03/f31ae9c6-f6ce-11e8-8642-c9718a256cbd_story.html.........

Qatar will pull out of OPEC amid tension with Saudi Arabia

By Jon Gambrell | AP

December 3, 2018 at 2:42 AM

DUBAI, United Arab Emirates — The tiny, energy-rich Arab nation of Qatar announced on Monday it would withdraw from OPEC, mixing its aspirations to increase production outside of the cartel’s constraints with the politics of slighting the Saudi-dominated group amid the kingdom’s boycott of Doha.

The surprise announcement from Qatar’s minister of state for energy affairs, Saad Sherida al-Kaabi, again throws into question the role of the cartel after needing non-members to push through a production cut in 2016 after prices crashed below $30 a barrel.

It also marks the first time a Mideast nation has left the cartel since its founding in 1960.

In a statement, al-Kaabi said Qatar, the world’s largest exporter of liquified natural gas, planned to increase its exports from 77 million tons of gas per year to 110 million tons. He also said Qatar wants to raise its oil production from 4.8 million barrels of oil equivalent a day to 6.5 million barrels.

“In light of such efforts and plans, and in our pursuit to strengthen Qatar’s position as a reliable and trustworthy energy supplier across the globe, we had to take steps to review Qatar’s role and contributions on the international energy scene,” al-Kaabi said in a statement.

There was no immediate comment from Vienna-based OPEC, which is to meet this month and discuss possible production cuts.

Qatar, a country of 2.6 million people where citizens make up over 10 percent of the population, discovered the offshore North Field in 1971, the same year it became independent.

It took years for engineers to discover the field’s vast reserves, which shot Qatar to No. 3 in world rankings, behind Russia and Iran, with which it shares the North Field. It’s also made the country fantastically wealthy, sparking its successful bid for the 2022 FIFA World Cup.

Qatar’s wealth also has seen it take on a larger importance in international politics. Its political stances have drawn the ire of its neighbors, particularly Saudi Arabia, OPEC’s largest exporter.

In June 2017, Bahrain, Egypt, Saudi Arabia and the United Arab Emirates began a boycott of Qatar in a political dispute that continues to this day

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  • yota691 changed the title to Qatar announces withdrawal from OPEC
 
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 Arab and international


Economy News _ Baghdad

Qatar announced on Monday its withdrawal from membership of the Organization of Petroleum Exporting Countries (OPEC) as of January 1, 2019, as it focused its efforts on the development of the natural gas industry.

"The State of Qatar will withdraw from the membership of the Organization of the Petroleum Exporting Countries (OPEC) as of January 1, 2019." Qatar's Minister of State for Energy, Saad bin Sharida al-Kaabi, said in remarks published by the Qatari newspaper Al-Sharq.

Al-Kaabi added that "OPEC was informed of the decision to withdraw Qatar from its membership."

"This decision reflects the desire of the State of Qatar to focus its efforts on the development and development of the natural gas industry and to implement the recently announced plans to increase the country's production of liquefied natural gas from 77 to 110 million tons annually." 


Views 17   Date Added 03/12/2018

 
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Russia, Saudi Arabia reach agreement to extend OPEC deal

Russia, Saudi Arabia reach agreement to extend OPEC deal


 03 December 2018 12:57 PM
Mubasher : Saudi Arabia and Russia agreed to continue in 2019 in their agreement to manage the oil market, which is known as "OPEC +", just days before the annual OPEC conference.

"There is no final decision on production rates, but we will do it with Saudi Arabia," Vladimir Putin told reporters on Monday. "Whatever figure we will rely on in that joint decision, we agreed to monitor the market position and we will react quickly.

The comments opened the door to speculation about a possible deal to cut production within Opec this week in Vienna.

OPEC is holding its annual meeting on Thursday in Vienna this week, which will see important discussions on the level of production, especially with the presence of trends to reduce it as prices fall.

OPEC is the agreement on production cuts that was implemented at the beginning of 2017 between OPEC and its partners, and it was agreed to extend it until the end of 2018.

By 9:50 am GMT, Brent crude for February delivery rose 3.8% to $ 61.70 a barrel.

US crude futures for January delivery rose 4.3% to $ 53.11 a barrel.

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Monday 3 December
 
 
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Alsumaria News / Baghdad 
announced that Qatar on Monday to withdraw from OPEC, that the implementation of the resolution in January 2019. 

The Qatari Energy Minister Saad al - Kaabi, the "Qatar Stnhsp from the Organization of Petroleum Exporting Countries , OPEC , as of January 2019" . 

"The decision to withdraw from OPEC came after Qatar reviewed ways to improve its global role and plan for a long-term strategy," al-Kaabi told a news conference.

 

 
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Does Trump regret the low oil prices?

Does Trump regret the low oil prices?

 02 December 2018 11:02 PM
Edit سالي إسماعيل

Directly: the day before the Thanksgiving holiday, US President Donald Trump went thanks to Saudi Arabia to make oil prices cheap, describing it as a tax rebate in the United States .

 

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This seems to be true. Former US Federal Reserve Chairman Janet Yellen made the same claim that an American family spends about 4 percent of its monthly budget to put gasoline in cars, so when the price of gasoline becomes cheaper, there will be a lot to spend on other things.

The conclusion is the approval of every US president since former President Dwight Eisenhower, according to an analysis published by "the Financial Times.

Cheap oil is still great for US drivers, but it also discourages US oil companies from drilling new wells for West Rock oil.

But what Trump does not seem to realize is that the country is not responding to the price of oil as it was until a decade ago. The "sad" diggings now have a greater impact than happy motorists.

In 2008 , the United States produced about 150 million barrels of oil per month, and by August this year it had grown to 350 million barrels.

Oil producers have adopted horizontal drilling techniques, hydraulic cracking and the opening of rocky oil fields in Texas, Wyoming and North Dakota, as if the United States had discovered and seized an oil state.

Oil imports have fallen by half and the country is once again the world's largest producer of crude.

Typically, consumption contributes the most to growth in the United States, a sophisticated economy full of people who want to buy goods.

But for several years after the recent economic recession, consumption growth has fallen in favor of foreign fixed investment, as companies buy new plants and machinery.

Then, around 2015 , Americans began buying consumer goods again, but companies stopped doing so.

In the event of a decline in investments in the oil sector, this would lead the rest of the sectors to a similar decline in investment spending.

Oil prices have fallen from $ 100 to less than $ 50 in a year and US capital spending has not collapsed, but capital spending in the fields of Permian, Eagle Ford, Bucken and Newbara has collapsed.

Saudi Arabia, under threat from the new technology, is playing a game that can be called a "price-tie clash."

In different countries, oil fields and even wells, the cost of extracting a barrel of oil varies widely. The break-even point is the market price at which production makes sense, and selling at a lower price means losing money.

Saudi Arabia has about $ 500 billion in foreign exchange reserves and its oil comes mainly from the ground, so I thought it could lower the price of oil and hurt US oil producers who had a higher price.

Indeed, this strategy has succeeded somewhat. Last week, the Federal Reserve in Kansas City issued a paper on how US investment in oil price shocks would respond.

Compared with the conventional well, the Bank noted that the rock oil well is more responsive to price changes with shorter investment periods.

The answer to the price-tie exercise came faster and more dramatic than it was before hydraulic cracking.

But the US rock oil industry has improved its effectiveness and reduced the price of the draw before Saudi Arabia abandons the strategy. The recovery in US commercial investment comes at a rapid pace after oil prices rise from mid- 2016 .

While Trump thanked the Saudis for Twitter for the price of oil, and ended his words by calling: "Let's get a lower price," the WTI price was around $ 55 a barrel, which is almost $ 5 higher than the new draw level, The price of oil in reducing the investment of companies in the sector.

Trump remains stuck in the early 2000 , when the American presidents need only to the Saudis to cut gasoline prices for drivers but it suffers from the same problem faced by any other oil country, it also needs to oil with a price high enough to keep the process of crude production Through hydraulic cracking .

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 Arab and international


Economy News _ Baghdad

Oil prices rose in early trade on Monday by 5 percent after Qatar withdrew from OPEC.

Brent crude for the day rose $ 2.89, or 4.9 percent, to $ 62.35 a barrel from the last closing price. Texas crude also rose $ 2.48, or 4.9 percent, to $ 53.41 a barrel.

Brent crude was down 80 cents and 1.3 percent at the end of last Friday's trading session, reaching $ 58.71 a barrel, while US crude fell 52 cents, or 1 percent, to $ 50.93 per barrel. .


Views 110   Date Added 03/12/2018

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Qatar announces its withdrawal from the "OPEC"

09:24 - 03/12/2018
 
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Information / Baghdad ..

Qatar announced on Monday its withdrawal from membership of the Organization of Petroleum Exporting Countries (OPEC) as of January 1, 2019, as it focused its efforts on the development of the natural gas industry.

"The State of Qatar will withdraw from the membership of the Organization of Petroleum Exporting Countries (OPEC) as of January 1, 2019." Qatar's Minister of State for Energy, Saad bin Sharida al-Kaabi, said in remarks published by the Qatari newspaper Al-Sharq.

Al-Kaabi added that "OPEC was informed of the decision to withdraw Qatar from its membership."

"This decision reflects the desire of the State of Qatar to focus its efforts on the development and development of the natural gas industry and to implement the recently announced plans to increase the country's production of liquefied natural gas from 77 to 110 million tons annually." Ending / 25

https://www.almaalomah.com/2018/12/03/369722/

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An oil expert shows the impact of Qatar's withdrawal from OPEC on the organization  

11:51 - 03/12/2018
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Information / Baghdad ..

Oil expert Hamza al-Jawahri said on Monday that Qatar's decision to withdraw from the Organization of Petroleum Exporting Countries (OPEC) is political and has no effect on the organization's policy because its production is very small, pointing to the conflict between Qatar and Saudi Arabia.

"The withdrawal of the State of Qatar from the Organization of Petroleum Exporting Countries (OPEC) a political decision because of the conflict between them and Saudi Arabia and the United Arab Emirates," Jawahri said in a statement.

"Qatar's withdrawal has no effect on the Organization's countries because its oil production is not more than 400 thousand b / d, as well as most of its oil production is used in refinery refineries and the proportion of crude oil is very little and may not."

"The reason for Saudi Arabia's dominance over the decisions of the Organization is due to its alliance with the Gulf Cooperation Council (GCC) countries. The total production of Saudi Arabia and its allied countries is 16,000 b / d, which is a large number, but Iran, Iraq and Venezuela are the counterpart of the Saudi alliance within the organization," Jawahri said. Ending / 25

https://www.almaalomah.com/2018/12/03/369773/

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  • yota691 changed the title to Iran holds Russia and Saudi Arabia responsible for Qatar's exit from OPEC
 
Monday 3 December
 
 
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Alsumaria News / Baghdad
, said the representative of Iran at the Board of Governors of the Organization ofPetroleum Exporting Hussein Kazempour Ardebili, Monday, that the decision to leave the country of the organization reflects the "disappointment" some of its members about the role of the Russian and Saudi Arabia in the oil market. 

"This is very unfortunate, and we understand their disappointment," Ardebili told Reuters, commenting on the Qatari decision. 

"Many other Opec members are disappointed that the Joint Ministerial Committee on Observation (chaired by Russia and Saudi Arabia) is taking decisions on production unilaterally and without the consensus required by OPEC," he said.

 

 

"Now the Russians and the Saudis are asking others to take part in cutting production," he said. 

Hossein Kazempour Ardebili expressed his doubts about the possibility of extension of the OPEC + agreement to reduce production during the next meeting in Vienna in this regard. 

Opec and non-OPEC member states will meet this week to discuss oil production cuts in 2019 and the extension of the deal, which expires this year.

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Experts explain the impact of Qatar's exit from OPEC on the oil markets

03:09 - 03/12/2018

 
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Follow - Mawazine News

Economic analysts predicted that Qatar's decision to withdraw from the Organization of Petroleum Exporting Countries (OPEC) would not affect significantly the global oil market and the interests of the rest of the bloc.

"Qatar's exit from OPEC will probably not affect this organization, given the Qatari side's statement that it will continue to comply," said Yekaterina Groshevenko, an expert at the energy center of the Moscow-based Skolkovo School of Business, in an interview with Novosti. Commitments outside OPEC. " 
The Russian expert stressed that the increase of Qatar's oil production, if decided, will not adversely affect the world market, noting that the country does not have enough potential to increase its oil production, as it committed to reduce production by 30 thousand barrels per day under an agreement signed within the OPEC In early 2017, and last October reduced production by 40 thousand barrels per day, "which indicates the existence of difficulties faced by Qatar in front of increased production.
"If Qatar decided to stay in Opec, it would have to commit to further cuts in oil production, which is not in the interest of Doha, which has produced a share of the production of oil," Kirill Takachenko, an analyst at Russia's brokerage firm PKS, Only 1.85% of the total production of the organization, by 609 thousand barrels per day in 2017. 
Dmitri Abzalov, head of the Center for Strategic Communications, that Qatar, which suffers economic sanctions imposed by the countries of the province, led by Saudi Arabia, trying, by withdrawing from OPEC , "Removing restrictions to increase exports of LNG on one hand, and Hit Saudi Arabia on the other hand, "ahead of the OPEC + summit in Vienna, which is expected to come out with an agreement to cut production.
Abzalov stressed that the decision to withdraw, although limited in its impact on oil prices, "will lead to the dispersion of positions of the Middle East on energy prices, as will have Iran, Qatar, Iraq, and even Venezuela positions of their own." 
"The big trio, the United States, Russia and Saudi Arabia, will play a leading role in the global oil market, at the expense of the OPEC member states," he said. 
In turn, Rustam Tankayev, a member stressed in the abyss of the energy strategy of the Chamber of Commerce and Industry of Russian, in an interview with Channel "Zvezda", on the need to differentiate between OPEC and the agreement of OPEC the + is the main regulator of oil prices, and the afternoon after showing non - OPEC effectiveness. " It is 
noteworthy that Qatar , The world's largest exporter of liquefied natural gas, announced in July 2017 its intention to increase gas production in the North Field by 30%, from 77 to 100 million tons per year, in the midst of a crisis with its Gulf neighbors.
Qatar joined the OPEC membership in 1961 and was ranked 11th in terms of the volume of oil production among the members of the Organization, which remains in 14 countries after the departure of Qatar.

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Oil prices are recovering and rising more than 4 percent, supported by lower Iraqi production

11:38 - 03/12/2018

 
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Follow - up - the balance of News 
Oil prices rose, Sunday, more than 4 percent backed down Iraqi production and Russian, in addition to the initial agreement between OPEC members to reduce production. 
Brent crude <LCOc1> rose $ 2.73, or 4.59 percent, to $ 62.11, while US crude rose $ 2.48, or 4.87 percent, to $ 53.41. 
A statement by the Ministry of Oil that "Iraqi exports for the month of November fell to 101 million barrels, after it was 107 million barrels for the month of October last."

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 Arab and international


Economy News _ Baghdad

 OPEC and its allies are working towards an agreement to cut oil production by at least 1.3 million barrels per day, adding that Russia's resistance to significant production cuts is the main obstacle so far.

OPEC meets on Thursday in Vienna and then talks with allies such as Russia on Friday amid a drop in oil prices due to weak global economic performance and concerns over the oversupply of oil as a result of increased US production.

Saudi Arabia, the world's largest producer, has pointed to the need for deep cuts in production from January but is under pressure from US President Donald Trump to help boost the world economy at lower oil prices.

The crisis in the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul in October could complicate any OPEC decision. Trump supports Crown Prince Mohammed bin Salman despite calls by many US politicians to impose tough sanctions on Riyadh.

The sources, three from the Organization of the Petroleum Exporting Countries and an exporter from outside, said the meeting was in a difficult situation and Russia's position would be important to reach an agreement.

"Russia is showing a reluctance," one OPEC source said. 
Russian sources said that Moscow could contribute about 140 thousand barrels per day in the cut, but OPEC, which is dominated by countries from the Middle East insists that Moscow cut production between 250-300 thousand barrels per day.

Two OPEC sources said the talks focused on a three-to-3.5 percent reduction in production levels recorded in October, with no exceptions for any member.

"Until these standards are met, OPEC may suffer a decline in oil prices for a period if it chooses to postpone the reduction decision for one or two months," one source said.

"OPEC can always meet again in February and decide on a cut then. Who are unable or unwilling to cooperate will be willing to cut back. "

Qatar said on Monday it would withdraw from OPEC to focus on gas, which could undermine Saudi Arabia's efforts to show unity in tackling falling oil prices.


Number of Views 14   Date Added 04/12/2018

 
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  • yota691 changed the title to Iraq stresses OPEC's unity and calls for more solutions than cut production
Editorial Date: 2018/12/4 19:55  113 times read
Iraq stresses OPEC's unity and calls for more solutions than cut production
The Deputy Prime Minister for Energy and Minister of Oil, Thamer Abbas Al-Ghadhban, stressed the importance of convening the ministerial meeting of the Organization of Petroleum Exporting Countries (OPEC) and producers from outside, at a time when the global oil market faces new challenges of low oil prices.
A statement to the ministry received the agency {Euphrates News} a copy of Ghadhban saying before heading to participate in the ministerial meeting in the Austrian capital Vienna on Thursday and Friday next, that "Iraq's position will be positive and constructive in order to contribute to achieving the required balance of the oil market and support oil prices "He said. 
"The need to develop a medium and long-term strategy to achieve more stability required for oil prices, and to work to reduce the geopolitical and other factors on the oil market and price volatility, which have caused a lot of damage to our economies and development programs, and undermined the movement of the global economy."
He pointed out that "the need to develop new ideas and proposals to address all this, and not to shorten solutions to reduce production only, but go to more, and if the agreement between the producers at the ministerial meeting on a new formula, it must take into account the interests of producers of OPEC members and With them from outside, and not to inflict damage that may result from the producers, including Iraq, and everyone to maintain the unity of the Organization and strength, and respect the interests and common goals, "in reference to Qatar's decision to withdraw from OPEC next month. 
"At the ministerial meeting, we will listen to the report of the technical committee on the conditions of the global market, and this will be discussed to reach proposals that contribute to reaching an agreement between the producers contribute to address the decline in oil prices, which lost more than twenty points in a short period, and this is a concern True to us and to other producers. "
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  • yota691 changed the title to Al-Rashidi: OPEC ministers will discuss oil market conditions and stability
 
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OPEC logo
  


 Arab and international


Economy News Baghdad

The ministers of OPEC will discuss at their meeting on Thursday the conditions of markets and supply and demand and how to deal with them in order to serve the stability of markets, the official Kuwaiti news agency quoted Oil Minister Bakhit Al-Rashidi as saying.

The Organization of the Petroleum Exporting Countries (OPEC) is set to meet Thursday in Vienna to discuss future oil market strategies, followed by talks with OPEC allies such as Russia on Friday.


Views 30   Date Added 12/05/2018

 
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  • yota691 changed the title to Trump says OPEC: The world does not want high oil prices

Trump says OPEC: The world does not want high oil prices

06:27 - 05/12/2018

 
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BAGHDAD (Reuters) - 
US President Donald Trump expressed his hope that the Organization of the Petroleum Exporting Countries (OPEC) would "keep oil flows as it is," stressing that "the world does not want oil prices to rise." 
Trump said Wednesday in his tweet on the social networking site Twitter before the OPEC meeting in Vienna on Thursday. 
"We hope that OPEC will keep oil flows as they are and not constrained," Trump wrote. "The world does not want to see, or need, high oil prices!"

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Editorial date: 2018/12/5 21:02 • 164 times read
OPEC issues a statement on Qatar's withdrawal from the organization
[Where - Follow - up] 
Organization of Petroleum Exporting Countries "OPEC" today issued a formal statement expressing its position on Qatar 's decision to withdraw from the organization.

The statement confirmed that the Secretary-General of the Organization Mohammed Barkindo received a letter from the State of Qatar informing him of the withdrawal from the membership of OPEC. 
He added that the Qatari Minister of State for Energy Affairs Saad Al-Kaabi expressed in his letter the "sincere appreciation to the OPEC member states and the Secretary General and all the staff of the Organization." 
OPEC said in its statement that each member state has "a sovereign right to withdraw from the Organization, and this does not require the approval of the OPEC Conference," adding that it "respects the decision taken by the State of Qatar." 
The OPEC Secretariat thanked Qatar for its "support to the Organization over several decades of its membership." 
The Organization expressed its appreciation for the interest of the oil-producing countries to join them and affirmed its full commitment to achieving and supporting balance and stability in the oil market in cooperation with the 10 non-member countries of the Organization.
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Editorial Date: 2018/12/6 15:08  33 times scheduled
Oil prices drop 5% after OPEC hint to lower production cuts
International oil prices lost about 5 percent on Thursday after OPEC hinted it could agree to a lower-than-expected production cut as global equity markets were hit by concerns about the economic impact of trade tensions.
The Organization of the Petroleum Exporting Countries (OPEC) is meeting in Vienna to decide on oil production policy in coordination with producers from outside the Organization such as Russia, Oman and Kazakhstan. 
Expectations were for a combined reduction of between 1.4 million barrels per day until Saudi Energy Minister Khalid al-Falih said before the meeting that the OPEC + group would be comfortable with a reduction of just 1 million bpd. 
Brent crude futures were down $ 2.72 to $ 8.84 a barrel by 1043 GMT, after hitting a session low of $ 58.36. US crude fell $ 2.32 to $ 50.57 a barrel. 
Brent crude and US crude lost 30 percent of their value this quarter alone.
"Overall, this shows the weak momentum in the market today, which is clearly exacerbated by what happened overnight ... from stock sellbacks and bond yields," said Saxo Bank's Ole Hansen. 
"But (OPEC) knows how to manage the markets, and may push the market down and then strike a sudden blow soon, and this may be the result also." 

OPEC oil production has risen 4.1 percent since mid-2018 to 33.31 million bpd. 
Oil production from the world's top producers, OPEC, Russia and the United States, has increased by 3.3 million bpd since the end of 2017 to 56.38 million bpd to meet about 60 percent of world consumption.
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Thursday, December 6
 
 
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Alsumaria News / Baghdad 
showed Saudi Arabia 's energy minister, on Thursday, his country 's satisfaction with the current price of oil, as he emphasized the lack Dzd agreement so far to cut production. "There is no agreement so far to cut production, and we are comfortable with current oil prices," Saudi Energy Minister Khalid al-Falih was quoted as saying 

by the Reuters news agency. " We do not want to cause any shock in the oil market." 

Al-Falih said he did not need permission from anyone to reduce oil production, in response to previous comments by US President Donald Trump, in which he called on OPEC to not cut production and asked oil producers to cut prices.

 

 

Al-Faleh expected his country's production of oil to reach between 10.7-10.8 million barrels per day in December, adding that "OPEC production cuts must be agreed for a period not less than six months." 

OPEC members will meet Thursday In order to agree on the reduction of oil production after it saw prices to less than $ 60 per barrel.

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A sell-off in the emerging market currencies led by the Turkish lira and the rand

A sell-off in the emerging market currencies led by the Turkish lira and the rand
 

 06 December 2018 03:27 PM
Mubasher: A sharp sell-off took hold of emerging market currencies Thursday, led by losses in the Turkish lira and the South African rand.

The losses in the domestic currency market of developing countries coincided with the rise of the US dollar as well as the fall in oil prices, which fell more than 4% today as the outcome of the OPEC meeting awaited.

The local currency market for emerging markets is also showing a remarkable sell-off today amid growing concern over US-China trade tensions and overall geopolitical uncertainties.

As for the MSCI Emerging Markets Index, it fell 0.4% today after recovering from yesterday's 4-month low on Tuesday.

By 12:07 pm GMT, the South African currency fell against its US counterpart by more than 1.4% and the dollar rose to 14.0478 rand.

The Turkish lira fell to 5.3788 lira per dollar, down 1%, after losing 1.4% in early trading.

Brazil's currency also saw a drop of more than 0.8% against the US dollar, bringing the US currency to 3.8975 riyals.

At the same time, the Russian ruble fell against the dollar by 0.6% to record the green currency 66.9393 rubles.

The currency of Mexico against the dollar fell by 0.5% to rise the US paper 20.6039 pesos.

The Chinese yuan was also down 0.6 percent against the greenback to record 6.8969 yuan, heading for the biggest daily drop in nearly four months.

India's currency was down 0.6% at 11:29 am GMT, rising to 70.9037 rupees.

During today's trading, the main index that followed the performance of the US paper against 6 major currencies at 97.058.

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Saudi Energy Minister to Washington: I do not need permission to cut production

04:21 - 06/12/2018

 
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 Follow - up to the balance of News  
said the Saudi Energy Minister Khaled al - Faleh, said Thursday that the United States "is not in a position" allows it to dictate the Organization of Petroleum Exporting Countries (OPEC) behavior. 
"Washington is not in a position to tell us what we have to do," Faleh said before an OPEC meeting in Vienna. 
 "I do not need anyone's permission to cut production. 
US President Donald Trump on Wednesday urged OPEC member states not to cut production, saying "world oil prices must remain low.  
" Trump said in a tweet: "We hope OPEC will keep oil flowing as it is without restrictions. "The world does not want and does not need to see oil prices rise." The  
Saudi oil minister said that "OPEC wants to agree on a" sufficient reduction "of its oil production in order to rebalance the markets. 
"This reduction, which may be decided at the meeting," should be distributed equally among member states, according to the percentages of their production. "  
Al-Falih said that a reduction of" one million barrels per day "is desirable without specifying whether this reduction is from the level of targets set At the end of 2016 or the group's production volume in October and November 
OPEC production in October was 32.99 million barrels per day, according to the International Energy Agency, while Saudi Arabia announced an increase in production in November 
While a number of analysts believe that the reduction of production per million barrels per day will not be Enough to rebalance the markets, prices fell by 5 percent D The Saudi minister 's comments. 
At about 10:35 GMT, the price of a barrel of Brent North Sea oil fell for February delivery to $ 58.62 after losing to $ 2.94 compared with the closing price Wednesday.
For his part, the Iranian Oil Minister said that most OPEC countries want a price of crude between sixty and seventy dollars. Finished 29 / w

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Iraq, Kuwait and Qatar are the only major OPEC producers able to balance their budgets

 

Saturday 1 December

 

 

The newspaper The Wall Street Journal , that Iraq and Qatar and Kuwait , the major producers only in the organization who are able to balance their budgets. 

"According to current prices of $ 58 a barrel, Iraq, Kuwait and Qatar are the only major producers in the organization who can balance their budgets," the paper said. 

"Kuwait needs $ 48 to reach a break-even point, while Qatar can balance its budget by a barrel of oil by about $ 47," the newspaper said, quoting IMF data.

"Iraq requires $ 55 a barrel to achieve a break, while Saudi Arabia needs $ 88, the UAE $ 71, Oman 77, Bahrain $ 111 and Libya $ 114." 

"With oil prices falling by nearly a third in less than two months, officials in many Opec countries say the need for collective action to stem oil prices is greater than the anger of US President Donald Trump, who publicly accused them of plotting to keep prices high ," the Wall Street Journal said. 

Before the global oil price fell to around $ 60 a barrel, Trump persuaded OPEC and its allies not to take any action to halt price declines. But for many OPEC countries, current prices are insufficient but far below what they need to balance their budgets.


 

 

These fears will weigh on OPEC officials as they set the course for the 2019 Global Alliance at a meeting in Vienna next week.

Why are these 3 M.E. countries able to balance their budgets at $58 ppb? Also why is Saudi Arabia able to sell oil and make money (not loose as much money) at $58 ppb? The first answer is because they are selling at above their costs to produce a barrel of oil.   S.A. is able to continue being the richest oil country in the world, because these 4 M.E. countries are tied to the US dollar, and to doing business with the U.S. and western world via the Swift System. Making it profitable for them by doing business with the west, by if you cannot make $$$ with oil, you can make the difference up by making $$$ in other than oil areas. Thus the push to diversify their economy's from strictly oil based. Getting into liquified natural gas. Fertilizers. Developing Iraqi internal markets. (Aren't we seeing tarriffs on imported goods into Iraq? Did the murderious Crown Prince of SA fire and or jail the SA deep state folks who were preventing Sa from diversifying their economy cuz thats where they were skimming off the top?)  Why is Iran faltering , and likely to go the way of the former Soviet Union, because they do not have access to certain markets via the Swift System. Plus the US is adding more sanctions onto Iran and Soviet union because they did not cave, but instead Iran launched a ICBM with multiple warheads capabible of carrying nukes, while Russia seized 3 Ukranian ships. Plus Russia is P.O.'d because we are placing their oil deal with Germany in peril telling Germany buy US oil instead, or Iraqi oil, or Kuwaiti oil, or Qatarian oil. We can help you make a deal to get it cheaper than what Russia ( a member of OPEC.) will charge you. Isn't it a miracle Qatar is talking about leaving OPEC. Why, because no one but Trump was effectually countering OPEC's moves. Yes even more reasons/pressure for Iraq to revalue their currency. So what do we as Dinarians need to do? We need to flood The White Houses Official FB, Twitter pages with requests for new Trump policies that would encourage Iraq to revalue their currency now. In similar fashion that we took to force post WWII Germany and Japan to revalue their currency's in the mid to late 60's. They had, had enough time to rebuild their individual economies on the cheap; and now so has Iraq. 

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