Oil rises 1% on settlement amid fears of supply shortages

[Pitcher]

U.S. Refiners Rush To Buy Heavy Oil As Trump Looks To Punish Maduro- 

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Refiners in the United States are stocking up on heavy crude, pushing prices higher, as the Trump administration prepares to slam more punitive measures on Caracas after the inauguration of Nicolas Maduro as president of Venezuela for a second term after elections considered illegitimate by Washington.

Reuters reports that officials from the presidential administration met with oil industry executives to discuss the measures on the table, including the suspension ofrefined product exports to Venezuela or Venezuelan crude oil imports into the United States.

Gulf Coast refiners have a limited choice of supplier when it comes to heavy crude. Besides local grades such as Mars, they import the heavy crude they need to produce more than just gasoline from Canada, Venezuela, and Mexico.

It is this scarcity of alternatives that has probably stopped Trump from banning Venezuelan oil imports so far, although the blanket import ban card has been waved around a couple of times already..

 

However, it is possible that things may have changed now: the U.S. President earlier this week said he recognizes the president of the Venezuelan National Assembly, an opposition politician, as the legitimate president of the country.

The oil industry is strongly against such a radical measure for obvious reasons: a barrel of Mars is already trading at a premium to the benchmark WTI and this week the premium jumped by US$2.30 a barrel in just two days. What’s more, refiners simply need the half of million barrels daily they took in from Venezuela last year amid the Canadian crude oil production cut aimed at boosting prices and a continued decline in Mexican oil output.

There is also concern among experts on Latin America advising the president that blanket oil sanctions could have an effect opposite to the desired one, with the United States displaying too direct an involvement in Venezuelan domestic politics.

By Irina Slav for Oilprice.com

 

https://oilprice.com/Energy/Crude-Oil/US-Refiners-Rush-To-Buy-Heavy-Oil-As-Trump-Looks-To-Punish-Maduro.html

[Pitcher]

OPEC states reduced oil production by 751 thousand barrels in December 2018

Date: 12:18, 18-01-2019.  

Almaty.  January 18. KazTAG - OPEC states reduced oil production by 751 thousand barrels per day in December 2018  - to 31.58 million barrels, TASS reports, citing the organization’s January report.
“Oil production decreased mainly in Saudi Arabia, Libya, Iran and the United Arab Emirates, while in Iraq, production levels, on the contrary, increased. In December, four countries reduced production by 864 thousand barrels per day (Saudi Arabia by 468 thousand barrels per day, to 10.55 million barrels, Libya - by 172 thousand barrels, to 928 thousand barrels, Iran - by 159 thousand barrels to 2.77 million barrels, the United Arab Emirates - 65 thousand barrels to 3.22 million barrels per day), ” reads the report.
Iraq has increased production by 88 thousand barrels per day, producing 4.71 million barrels in December. At the same time, Nigeria reported a record increase in production in December by 218 thousand barrels per day, to 1.78 million barrels.

 

https://www.kaztag.kz/en/news/opec-states-reduced-oil-production-by-751-thousand-barrels-in-december-2018

 

 

 

 

[yota691]

Oil closed up 3 percent supported by OPEC's plan to cut supplies

 

Saturday 19 January

 

 

BAGHDAD ( Reuters) - Oil prices closed at 3 percent on Saturday, boosted by Opec's plan to cut output, as well as efforts to end trade tensions between the United States and China .  Brent crude futures closed at $ 1.44, or 2.35 percent, at $ 62.62 per barrel.  It rose US Brent crude contracts for West Texas Intermediate $ 1.66, or 3.19 percent, to record at the settlement of $ 53.73 a barrel.   The Organization of the Petroleum Exporting Countries (OPEC) has published a list of oil production cuts for its members and other major producers starting January 1, 2019 to boost confidence in its agreement to cut crude supplies.  In December, the producer group agreed to cut oil output by 1.2 million bpd to support crude prices and reduce oil inventories at a time of increasing supply, especially from the United States.

[Pitcher]

Big Oil’s Strategy For A Global Energy Transition

By Nick Cunningham - Jan 20, 2019, 12:00 PM CST

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The world is in a transition between an era dominated by fossil fuels and one focused on a low-carbon economy,” David Koranyi wrote in a report for the Atlantic Council. “While the speed, timing, and details of the transition are highly uncertain, the direction should be clear: toward a low-carbon future.”

Koryani argues that there are a several drivers pushing the world in this direction, including falling costs for clean energy technology, consumer preferences, government policy, international agreements and pressure from various stakeholder groups. Even shareholders of oil companies are pressing executives to make the transition to cleaner energy.

Oil companies are responding in different ways with varying levels of urgency. Some companies are making significant investments in renewable energy, electric vehicles and associated infrastructure, and utilities. Others are dragging their feet, clinging to their oil and gas assets while fighting public policies that promote energy transition.

One key strategy from the oil majors is to make big bets on natural gas. The prospect of plateauing demand for oil in transportation has oil executives eyeing natural gas, which they view as a safer long-term investment due to the resilience of demand for gas in the electricity sector as coal phases out.

Most oil companies are also investing heavily in chemicals and petrochemicals. Environmental groups would correctly note that this is hardly a strategy for a clean energy transition, but oil executives (and analysts including the IEA) see demand for plastics, fertilizers and other petrochemical products as a larger source of demand growth going forward than the transportation sector. Shell is building a massive ethane cracker in Western Pennsylvania to build plastics from shale gas, for instance. ExxonMobil and others are doing the same on the Gulf Coast.

Related: Nord Stream 2 Is Losing support In Germany

Another strategy for the oil majors is to invest in short-cycle shale rather than conventional, offshore or other long-term projects such as oil sands. Shale drilling can return capital within a matter of weeks or months; an offshore project has a multi-decade time horizon. Due to the enormous uncertainty over peak demand, shale is seen as comparatively low risk. For example, Chevron just announced that it would spend $9 to $10 billion on short-cycle investments through 2022. “Most of our assets are competitive when tested against aggressive scenarios,” Chevron said in a presentation, referring to the possibility of an early onset of peak demand.

 

Finally, the oil majors – in fits and starts and to varying degrees – are beginning to invest in renewables. The European oil majors in particular have their hands in solar, offshore wind and electric vehicles.

Generally speaking, however, the forays by international oil companies (IOCs) into cleaner forms of energy remains marginal. “By and large, all IOCs are continuing to bank on sustained oil and gas demand and are proceeding cautiously when it comes to more ambitious diversification away from their core business,” Koryani wrote in the Atlantic Council report. He noted that even Royal Dutch Shell, which has made some of the more notable ventures into clean energy and is arguably doing more than its peers, still spends less than 10 percent of its capex budget on renewables.

Related: Saudis Set Sights On $80 Oil

Doubling-down on oil and gas drilling is problematic given the scale of the climate crisis. A report from Oil Change International argues that the U.S. oil and gas industry “is gearing up to unleash the largest burst of new carbon emissions in the world between now and 2050.” Unsurprisingly, a huge chunk of those emissions (39 percent) will come from the Permian, with 19 percent coming from the Appalachian basin (Marcellus and Utica shales).

Over the next few decades, the report says, the U.S. oil and gas industry will add the equivalent greenhouse gas emissions of nearly 1,000 coal-fired power plants. In short, the plans for drilling in U.S. shale alone will likely ensure the world blows past even the more modest climate goals contained in the Paris agreement. Oil Change International’s report, aptly titled “Drilling Towards Disaster,” calls for a ban on new leases and permits, ending subsidies for fossil fuels, and a plan for a phase out of existing projects.

Needless to say, the gap between what is needed and what the oil industry is doing is overwhelming. It is no wonder then that both sides see this as an existential fight.

 

https://oilprice.com/Energy/Energy-General/Big-Oils-Strategy-For-A-Global-Energy-Transition.html

 

[Pitcher]

IEA: OPEC+ Cuts Put Floor Under Oil Prices

By Nick Cunningham - Jan 20, 2019, 2:00 PM CST

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The “journey to a balanced market will take time, and is more likely to be a marathon than a sprint.”

The International Energy Agency (IEA) said that the OPEC+ cuts that started this month likely put a floor beneath oil prices, but that it would still take time before the reductions could balance the oil market.

Oil prices fell over the course of December, even after the OPEC+ cuts were announced. That reflected pessimism over the trajectory of the global economy as well as fears that the oil market was about to head into another steep downturn not unlike the 2014-2016 bust. Those fears were exaggerated, at least as far as the oil market goes, but the production cuts will still take time to work through.

OPEC released its Oil Market Report in recent days, which showed that the cartel slashed output by 750,000 bpd in December – sharp reductions that came before the deal even went into effect. Saudi Arabia led the way with 468,000 bpd in reductions, but its efforts were aided by the involuntary losses from Iran (-159,000 bpd), Libya (-172,000 bpd) and Venezuela (-33,000) bpd.

In fact, those three countries have accounted for massive output reductions over the past two months. The OPEC+ deal is using October as a baseline, calling for 1.2 million barrels per day (mb/d) in reductions, and the group is well on their way thanks to turmoil in just a few countries. Over the course of November and December, Iran has lost 561,000 bpd, Libya has lost 190,000 bpd, and Venezuela’s output fell by 58,000 bpd. Taken together, the involuntary outages exceed 800,000 bpd.

Related: U.S. Oil Outlook Slammed By Lower Prices

That makes Saudi Arabia’s job a lot easier, and the de facto leader of OPEC has pledged to cut its own output by 800,000 bpd from the October baseline. That means that the OPEC+ coalition is well on its way to balancing the oil market.

 the world's largest community dedicated entirely to energy professionals and enthusiasts

Still, there is “less clarity” over Russia’s intentions, the IEA said in its report. The agency noted that Russia likely increased output in December to a new record high of 11.5 mb/d, while the cuts in January are likely going to be phased in slowly. Saudi oil minister Khalid al-Falih said in recent days that the cuts are “slower than I’d like.”

Russia’s energy minister Alexander Novak said on Thursday that his country would try to speed things up. “Of course, we will try to make the cuts faster,” Novak told reporters in Belgrade, Serbia. “We have our limitations of a technological nature, yet we will aim to reach the levels we agreed on.”

Meanwhile, U.S. shale will continue to grow this year, complicating the efforts of OPEC+. The IEA left its projection for U.S. production growth unchanged at 1.3 mb/d. Related: This Is How Much Each OPEC+ Member Needs To Cut

Demand remains one of the key questions for 2019. This is the first report from the IEA since the severe market turmoil in December and the pricing meltdown. The agency left its demand growth forecast steady at 1.3 mb/d. While the “mood music in the global economy is not very cheerful,” the IEA said, lower prices and a weaker dollar have helped stoke demand a bit. As a result, low prices somewhat offset the softer economy.

Finally, it’s a big year for the downstream sector. Refiners are gearing up for the global regulations on marine fuels from International Maritime Organization (IMO), which take effect on January 1, 2020. Knocking out dirty fuel oil from the global shipping fleet will lead to a surge in demand for middle distillates. Margins for diesel are already sharply higher than that for gasoline, and the more refiners chase diesel, the more they flood the gasoline market. At the same time, huge additions to the refining fleet are expected this year. “Processing capacity will increase by 2.6 mb/d, the biggest growth for four decades,” the IEA said. These changes could see major disruptions in various fuel markets, with a glut of gasoline occurring alongside a premium on diesel.

“By the end of the year, all industry players, upstream and downstream, may feel as if they have run a marathon,” the IEA concluded.

 

https://oilprice.com/Energy/Crude-Oil/IEA-OPEC-Cuts-Put-Floor-Under-Oil-Prices.html

[yota691]

OPEC oil prices rise to more than 60 dollars

 

Monday, January 21

 

 

Alsumaria News / Baghdad, said the Organization of Petroleum Exporting Countries , on Monday, the daily price of OPEC basket rose to record more than $ 60 per barrel.  "The price of OPEC's basket of fourteen barrels of crude was 60.90 dollars per barrel," the organization said in a statement read by Alsumaria News.  "The price rose from the previous day of $ 59.63, according to the accounts of the OPEC secretariat."  Composed Organization of Petroleum Exporting Countries basket (OPEC) reference of the following: desert mixture ( Algeria ), and Girassol (Angola), and Oriente (Ecuador), and Zafiro (Equatorial Guinea), and Raby Lite (Gabon), Iran Iran), Basra Lite ( Iraq ), Kuwait Express (Kuwait), S Sider ( Libya)), Bonnie Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Morgan (United Arab Emirates) and Miri (Venezuela).

[nannab]

Thank ya Yota and good morning DV 

[md11fr8dawg]

Well the price is up Boyz, so what are you waiting for hmmm??? Stop chasing those goats around and get to work for a change!!

[davis411]

3 minutes ago, md11fr8dawg said:

Well the price is up Boyz, so what are you waiting for hmmm??? Stop chasing those goats around and get to work for a change!!

Thought it was chasing chickens 

I guess goats can work also

[yota691]

Oil rises to the highest level in 2019 thanks to Chinese demand

04:15 - 21/01/2019

 

 

 

Follow - up - the balance of News 
Oil prices rose on Monday to its highest level since the beginning of the year after data showed that the consumption of refineries in China rose last week to a record level, despite a slowing economy. 
Brent crude was $ 62.77 a barrel at 7:26 GMT, up 7 cents from the previous settlement. 
US WTI crude was up $ 53.92 a barrel, up 12 cents, and US crude was up $ 54 a barrel for the first time this year. 
According to official Chinese data, the average consumption of crude oil refineries reached a record high of 603.57 million tons in 2018, a rise of 6.8 percent over the previous year.

[10 YEARS LATER]

3 hours ago, davis411 said:

Thought it was chasing chickens 

I guess goats can work also

 

Pretty tuff to put one of those “ Skimpy French Chambermaid outfits “ on a chicken....works better on a Goat....so says my reputable source in Kuwait.  😎

[10 YEARS LATER]

GROOVY !!!!!!

[NoviceInvestor]

Lining the coffers well with cash while the citizens scrape by.

[yota691]

Energy Agency: The full impact of oil production has not yet emerged

 

 

22 January 2019 07:00 PM
Direct: The International Energy Agency warned of big implications for the production of shale oil in the United States on the crude market in the coming years.

"The belief that the market is currently under the full influence of the US rock production jump is a big mistake," Acting Executive Director Fatih Birul told CNN on Tuesday.

"We will see huge oil and gas spillovers on both gas and oil for many Swat," Berrol said at the Davos Economic Forum.

"Despite OPEC cuts, prices this year will face renewed pressure from increased production in the Breeman and New Mexico basins in the United States," he said.

The Organization of Petroleum Exporting Countries (OPEC) and its allies have started cutting crude production by 1.2 million bpd since the beginning of this month.

"The capacity of the Berman Basin is 60 percent more than in the past, so the ability of the US oil industry to respond to the market is faster and more aggressive at the moment.

"If there is no big geopolitical event, it will be very difficult to see prices approaching $ 90 a barrel," Brent said in October.

The Energy Agency has warned that the growth of US production and slowing global economic growth will put great pressure on the oil market.

[yota691]

Oil prices rise and Brent crude settles at $ 61.85 a barrel

 

Wednesday, January 23,

 

 

BAGHDAD (Reuters) -  Oil prices rose nearly half a point on Wednesday, driven by information about a Chinese decision to ease pressure on financial markets by increasing spending to curb the economic slowdown.  In London, Brent crude futures rose by 35 cents to settle at $ 61.85 a barrel by 6:24 am GMT.  The increase in the price of global benchmark crude is about 0.6 percent above the previous close, Reuters reported.       West Texas crude futures, which represents the US broker, rose 25 cents to settle at $ 53.26 a barrel, or 0.5 percent.

[yota691]

Oil falls on concerns of slower demand for fuel

 

An oil refinery in Philadelphia. "Reuters"

Arab and international Economy News Baghdad Oil prices fell on Thursday as worries persisted that slowing world growth could curb fuel demand and a sudden increase in US crude inventories. By 0627 GMT, Brent crude futures were $ 60.85 a barrel, down 29 cents, or 0.5 percent, from the previous settlement price. US WTI crude futures were $ 52.37 a barrel, down 25 cents from the previous close. "The crude market is currently focusing on global growth concerns mainly ... it seems to be looking at stock readings as a secondary factor," said Hugh Freim, portfolio manager at Frame Funds in Sydney. "The IMF cut the 2019-2020 outlook and the constant comments from Davos confirming that they expect global growth to slow down over the next two years put selling pressure on oil," he said. Earlier this week, the IMF cut its forecast for global economic growth in 2019 and 2020 due to weakness in Europe and some emerging markets. Meanwhile, world leaders and senior executives are meeting in Davos, Switzerland to discuss policy management amid fears of a global economic slowdown, damage caused by trade wars and British secession from the EU. Oil market sentiment was also hurt by a surprise surge in US crude inventories after refiners cut output, US Petroleum Institute data showed on Wednesday. Views 18   Date Added 01/24/2019

[yota691]

OPEC avoids a new oil cap before April

 

 

History: 25 January 2019

OPEC Secretary-General Mohamed Barkindo said the Organization and its allies are not ruling out further action at their next meeting in April if stockpiles increase in the first quarter.

Producers are due to meet on April 17 and 18 to review the deal. Barkindo did not rule out further action if industrial stocks continued to rise above the five-year average. "We continue to focus on the balance between supply and demand ... the challenge we face is to maintain the balance between supply and demand," he said.

"We have seen stocks rise above the five-year average. Two months ago we saw a deficit. We aim to ensure stocks remain below the five-year average. " "Producers are implementing significant cuts in oil production to avoid an increase in stocks during the first quarter, and the crude market responded well," Barkindo said. "We have seen strong cuts from major producers to avoid a resurgence of inventories in the first quarter ... We are very satisfied with the market response," the Secretary-General said.

[yota691]

U.S. Could Soon Pump More Crude Than Saudis Can at Their Peak

• Grant Smith

January 18 2019, 7:40 AMJanuary 18 2019, 3:43 PM

(Bloomberg) -- America’s journey to preeminence in the global oil trade is about to hit another milestone.

Propelled by the shale-oil boom, the U.S. is already producing more crude than either Russia or Saudi Arabia, who until recently vied for the top spot. By mid-year America will go one better.

At the moment, Saudi Arabia could raise production all the way up to its maximum capacity of 12 million barrels a day, surpassing the 11.8 million daily barrels produced by the U.S. in December, according to the International Energy Agency. Soon even that won’t be enough.

American crude output is poised to expand by 1.1 million barrels a day this year, according to the IEA, which sees the U.S. exceeding the Saudis’ maximum level within the next six months.

“By the middle of the year, U.S. crude output will probably be more than the capacity of either Saudi Arabia or Russia,” the Paris-based agency said in a report on Friday.

That extra magnitude probably won’t translate into increased influence over prices, however. As only the Saudis remain willing to hold back production capacity when there’s too much oil on the market, the kingdom will retain its unique position as the so-called swing producer.

©2019 Bloomberg L.P.

[Pitcher]

Does the US want high or low oil prices.

The US economy has traditionally been a heavy importer of oil, making it unquestionably a fan of low oil prices. Meanwhile, theshale oil revolution has transformed the US oil industry, and driven net imports to almost zero. But, has that been enough to make America favor high oil prices, and to be an OPEC ally?

In 1975, two years after the OPEC embargo, theUS banned petroleum exports to ensure sufficient local supplies of the strategic, important commodity. At that time, net oil imports equaled six million barrels/day, a figure that grew to 13.5 million in 2006 in light of the economy’s sustained growth. Ensuring a reliable flow of oil for its economy, and for those of its economic partners, such as China and Japan, became a central tenet of US foreign policy, and a key reason for its heavy military involvement in the Middle East.


OPEC's ill-deserved reputation

At the same time, OPEC was building a reputation for restricting output, and raising global oil prices to the benefit of its members. This earned the group supervillain status among all segments of US society, due to the importance of gasoline prices to US household budgets.

In fact, based on a detailed analysis of oil production data for both OPEC members and non-members, Jeff Colgan of Brown University convincingly demonstrated that throughout the period of 1980-2009, OPEC’s reputation as a cartel was ill-deserved. With the exception of Saudi Arabia, the oil production strategies of the club’s members were identical to those of non-members. The reason for the myth’s persistence was that OPEC’s members enjoyed cultivating a reputation as bulwarks against western imperialism, while western leaders welcomed a willing scapegoat for their domestic economic woes.

In the early 2000s, as petroleum extraction technology advanced, US shale oil began to satisfy local demand, and in 2015, the industry’s renaissance had become strong enough for Congress to lift the 40-year-old export ban. By 2018, US net imports had fallen to 1.4 million barrels per day. With revenues, profits, and employment in the oil sector burgeoning, part of US society finally had an explicit preference for high oil prices, and this came to the fore in the wake of the 2014 oil-price crash, when many shale producers faced bankruptcy. The diminished importance of oil imports also became a central reason for the US’ “pivot to Asia”, and its reduced military interventionism in the Middle East.

In parallel to the transformations in the US oil sector, in December 2016, OPEC finally went from pseudo price-raiser to actual price-raiser, when a surprising deal with OPEC non-members, led by Russia, was secured. That deal has continued, driven by Russia’s desire to forge stronger geo-political ties with Saudi Arabia. US shale oil producers breathed a sigh of relief, as the increase in prices provided the industry with a much needed revenues boost.

But the US is much more than oil producers. Amidst the hysteria surrounding the 2014 oil-price crash, a segment of the media began attributing the decline in prices to Saudi Arabia, despite the fact that Saudi Arabia’s output was essentially fixed throughout the episode, and that the Kingdom continued to operate below capacity. Moreover, a popular theory emerged that Saudi Arabia was flooding the market in an attempt to knock out shale oil, despite the theory clearly being falsified by even a cursory look at the production data. As a result, a group of US Congress people threatened legal action against Saudi Arabia, accusing it of employing predatory pricing against US producers. Apparently, the US actually wanted high prices!

Until 2018, however, ahead of the midterm elections, Congress worried about the impact of higher gasoline prices on their constituents, and launched legal proceedings against Saudi Arabia and the rest of OPEC, accusing them of colluding to raise prices. After this, it was apparent the US now wanted low prices.

So what does the US actually want? Well, there seems to be a consensus among US policymakers that a thriving domestic oil industry is desirable, as evidenced by the ease with which oil producers have been able to overcome opponents, citing either environmental concerns, or trying to defend territories owned by Native Americans. This is partially due to the direct economic return from exploiting an available natural resource; as well as reflecting a desire for self-sufficiency, stemming from the US’ tilt toward economic and diplomatic isolationism.

But a large segment of society remains averse to higher oil prices, and still associates them with OPEC, whatever the actual cause. OPEC members may now regret their previous willingness to play the role of scapegoat in the eyes of the US public.

So which force dominates? The US political system is genuinely pluralistic, meaning that there is little sense in imagining an integrated US viewpoint. As Donald Trump is learning, Congress and the White House can have wildly divergent policy positions, while organs such as the State Department, the Department of Defense, and the individual state governments all have their own stances and wield significant authority. The contradictions can even be observed at the level of individuals, as a typical rural Republican voter simultaneously demandsprices low enough to raise their standard of living, but high enough to promote US self-sufficiency in energy markets. Either way, OPEC strategists have a tough job on their hands.

 

https://www.thebaghdadpost.com/en/Story/35721/Does-the-US-want-high-or-low-oil-prices

 

[yota691]

The price of Brent crude stabilized ahead of the release of US inventory data

 

 30 January 2019 10:39 p
Mubasher : Brent crude settled steady on Wednesday, ahead of US inventory data and expectations for a rise.

By 7:30 am GMT, the price of Brent crude for March delivery settled at $ 61.30 a barrel.

While US crude futures for March delivery fell 0.06% to $ 53.28 a barrel.

The US Energy Information Administration is due to release US inventories data later this week.

The US Petroleum Institute announced yesterday the rise in inventories by 1.1 million barrels per day in the week ending on January 25, compared to expectations of an increase of 3.2 million barrels per day.

Separately, the United States announced sanctions this week against Venezuela's national oil company, PEDCA, in order to increase pressure on President Nicolas Maduro and transfer power to Juan Guido, who has declared himself the country's interim president. .

[yota691]

OPEC oil production declined this month for these reasons ??

Editorial date: 2019/1/31 17:11 • 74 times read

(Reuters) - OPEC oil supply fell in January to a two-year high as Saudi Arabia, the world's largest exporter, overtook its share of the cut-off deal while Iran, Libya and Venezuela saw involuntary declines.

The survey showed on Thursday that the Organization of the Petroleum Exporting Countries (OPEC) of 14 members pumped 30.98 million barrels per day this month, down 890 thousand barrels per day from December, the biggest decline since the month since January 2017. 
The survey indicates that Saudi Arabia and its Gulf allies Exceeded supply cuts promised to avoid the possibility of a new fuzzy this year. A formal agreement between OPEC and its allies on supply cuts began in January 2019. 
Crude oil rose to $ 62 a barrel after falling below $ 50 in December, supported by the Saudi move and voluntary cuts in other Opec production He predicted a drop in supplies from Venezuela after US President Donald Trump imposed sanctions on its oil sector.
OPEC, Russia and other producers, in an alliance known as OPEC +, agreed in December to cut crude supplies by 1.2 million bpd from Jan. 1. The Organization of the Petroleum Exporting Countries has a quota of 800,000 barrels per day (bpd) of OPEC members, with the exception of Iran, Libya and Venezuela. 
In January, the 11 members of the organization participating in the new supply reduction agreement achieved a 70 percent commitment rate, according to the survey. Further cuts in Iran, Libya and Venezuela have pushed OPEC's total cut to 890,000 bpd. 
The latest deal came from OPEC and its allies months after they agreed to pump more oil, partly easing restrictions on the original deal to curb supplies, which came into effect in 2017.
The Reuters survey is aimed at tracking supplies to the market, based on offshore data from navigational data, Rafentiv Ekon data flows, and information from oil companies, OPEC and consultancy firms.

[yota691]

Oil hits the highest level in 2019, influenced by Venezuela's sanctions and OPEC cuts

 

Monday, February 4

 

 

BAGHDAD ( Reuters) - Oil prices rose on Monday to their highest level since the start of the year as markets narrowed due to OPEC-led production cuts and US sanctions on Venezuela .  Brent crude futures rose to their highest level since the start of the year at $ 63.37 a barrel by 1 p.m. Baghdad time after rising 3 percent in the previous session.  US WTI crude futures hit a year high of $ 55.68 a barrel, after already rising 2.73 percent in the previous session.   Production cuts from the Organization of the Petroleum Exporting Countries (OPEC) have been compounded by a commitment to a supply reduction agreement as US dredgers and sanctions on Venezuelan oil sales have declined.  Experts after examining the details released by the US Treasury Department on sanctions on Venezuela said they would significantly reduce oil transactions between Venezuela and other countries similar to those imposed on Iran last year.

[Butifldrm]

Russia 's economy sets its position on the global agreement to reduce oil production

 

 Twilight News    

 

 10 hours ago

 

 

The Russian Energy Minister Alexander Novak said on Monday that his country is fully committed to its commitment to gradually reduce its oil production.

Novak said in a statement that Russia's production of crude fell by 48 thousand barrels per day in January, compared to October, the basic level under which the reduction under the agreement.

 

Keywords: 

http://www.shafaaq.com/ar/Ar_NewsReader/8e5022bc-e11e-4397-ad38-a2479335cd74

[10 YEARS LATER]

On January 21, 2019 at 6:56 AM, davis411 said:

Thought it was chasing chickens 

I guess goats can work also

 

Edited February 5, 2019 by 10 YEARS LATER

[yota691]

Oil rises as the market focuses on tight supplies

 

Arab and international Economy News _ Baghdad Oil prices rose on Tuesday on expectations of global supply shortages due to US sanctions on Venezuela and OPEC-led production cuts. But disappointing US factory data pressured the market, which saw the rally of the US TTI and Brent rise to a 2019 high as concerns over the global economy continued. Futures for West Texas Intermediate were $ 54.65 a barrel by 0810 GMT, up 6 cents to 0.16 percent. Crude hit a two-month high of $ 55.75 on Monday. Brent crude for the year was $ 62.56 a barrel, up 5 cents, or 0.08 percent. Analysts said US sanctions on Venezuela focused market attention on a drop in global supplies. Experts said on Friday after examining the details published by the US Treasury Department on the sanctions imposed on Venezuela that it would significantly reduce oil transactions between Caracas and other countries and similar to those imposed on Iran last year. OPEC oil production fell in January by the most in two years, according to a Reuters survey. Number of Views 15   Date Added 05/02/2019