Oil rises 1% on settlement amid fears of supply shortages

[yota691]

Global commodity markets are seeing broad gains led by gold, palladium and oil

 21 February 2019 03:00 PM
From: Noha Al - Nahhas

Direct : I started the causes that have hampered the setback in global commodity markets last year in fading slowly, with the emergence of the commercial solution to the crisis between China and the United States.

Since the beginning of 2019, Washington and Beijing have engaged in six rounds of joint trade talks to end their trade dispute and seek solutions.

The US president has made it clear that he will remove the tariffs his administration has applied to its imports from China to resolve a trade deal with Beijing.

With these positive developments, investor confidence has begun to return to commodity markets, as removing trade tensions between the United States and China would restore confidence in global economic growth and boost demand for commodities.

Indeed, the Bloomberg Global Commodity Index rose 5.5% from the beginning of this year to the end of February 18.

The Fed's move away from the hawkish tone prompted investors to abandon the green card for gold metal.

The political turmoil in the United States last January due to government closures supported safe haven assets.

Gold reached its highest level in 10 months

Gold has been one of the top gainers in global markets this year. Gold futures have risen 3.2% since the beginning of 2019, or $ 41 an ounce, and hit a 10-month high in February.

Last month, Goldman Sachs raised its gold price forecast for the next three months to $ 1325 an ounce, $ 1375 an ounce over the next six months and $ 1425 an ounce over the next 12 months.

This came in contrast to previous estimates at $ 1250, $ 1,300 and $ 1,350 an ounce respectively.

Goldman Sachs believes that the precious metal will gain momentum due to rising demand for defense assets and the tendency of central banks to increase gold reserves as geopolitical tensions grow.

The World Gold Institute data showed that central banks increased their metal holdings at the fastest pace in 47 years.

Palladium records the highest level in its history

If gold is the biggest gainer in 10 months, the palladium has reached its highest level in history and the price of gold has exceeded $ 1500 an ounce, with gains of about 17% since the beginning of this year.

Phillip Newman, analyst at CNBC, says the palladium market is facing an increasing supply shortfall and is also on the rise in demand due to rising demand for cars.

An analyst at Capital Economics told The Wall Street Journal that palladium metal prices, although they have risen about 70% over the past 6 months, are not sustainable.

He added that it is now clear that the supply rose strongly in 2018, which would lead to a slowdown in prices coupled with the current slowdown in car sales.

Copper continues gains

Copper had a stake in the global metals gain train, rising 6.4 percent since the beginning of 2019.

In addition to the global gains of all the metals markets in the world, copper has its own gains, as China, which consumes half of the world's copper, raised its metal imports at a record high last January.

China's metal shipments reached 479,000 tons, up 14 percent from December levels and up 9 percent year-on-year.

According to an analysis of the site of "Money Conroll", he believes that the pace of new supply of mines will slow down because of the decline in the production of copper mine in Indonesia, while demand growth will remain strong in the coming years.

Global consumption of copper will be driven by stable growth in China's infrastructure and rising demand from the electric vehicle sector, he said.

Morgan Stanley expects global supply of copper mines to fall by about 2.4 percent in the current year, "meaning global demand needs to stabilize until the copper market remains balanced this year."

Goldman Sachs expects the copper price to reach $ 7,000 per tonne over the next 12 months, while Citibank expects $ 6,700 in the next six months if Washington and Beijing reach a solution to the trade dispute.

Oil recovers in 2019

Oil prices managed to record a recovery this year, with Brent and Nymex rising 23.6% and 22.4% respectively.

Goldman Sachs predicts that the average price of Brent crude in the second quarter of this year will reach $ 67.50 a barrel, led by strong demand and supply cuts by OPEC and its allies such as Russia.

The Bank is based on its positive forecasts that the growing expectations of a slowdown in global economic growth are unjustified and oil production losses in 2019 are already higher than expected.

BP's chief executive said conditions in the oil market were expected to improve in the coming months, expecting oil prices to be stronger this year.

According to the BP official expects oil prices this year to range between 50 and 65 dollars per barrel.

The price of iron ore reaches a record high

Just as the palladium market had its own favorable conditions, iron ore had the same conditions, with China's crude at an all-time high of 652 yuan per tonne ($ 96.26 per ton) before retreating slightly.

The Brazilian government ordered Valle to stop using eight dams used for mine disposal after the collapse of the dam on 25 January at the Corrigo do Vigo mine.

The closures are expected to affect about 9% of the company's annual iron ore production and have forced Vali to declare force majeure, a measure that would report its inability to meet contracts due to unforeseen circumstances.

[yota691]

Goldman Sachs: Oil price outlook is positive in the near term

 25 February 2019 12:10 PM
Direct : "Goldman Sachs , " the bank said that the near - term outlook for oil prices confirms that it will rise, with the market continuing to emphasize the process considerably, as a result applied by OPEC, Russia and the Organization of production cuts.

"The bullish probability for Brent crude prices exceeds the short-term outlook at $ 67.50 per barrel, which it believes could trade easily at levels between $ 70 and $ 75 a barrel," the bank said in a note issued on Monday. Reuters.

In January, OPEC and Russia began cutting production by 1.2 million barrels a day.

Nevertheless, the US bank stressed that expectations for a higher crude price should be curtailed in the second half of 2019 as a result of the impact of US crude exports and OPEC's ability to ease production cuts.

With regard to the Bank's long-term outlook for oil prices, it believes that the average price of Brent crude will remain under pressure at the lowest level of $ 60 per barrel, while US Nymex crude will fall below $ 55 a barrel as a result of the exit strategy.

By 9:05 am GMT, Brent crude for April delivery fell 0.4% to $ 66.83 a barrel.

 

[yota691]

Trump to the OPEC countries: Astrkhwa situation is fragile

Editorial date: 2019/2/25 15:41 • 64 times read

{International: Al Furat News} US President Donald Trump expressed concern Monday over oil prices and called on the Organization of the Petroleum Exporting Countries not to raise prices.

"Oil prices are rising too high," Trump said in a tweet. OPEC, please relax and take things simply. The world can not afford a price boom - the situation is fragile! "

[yota691]

 

Trump: Oil Prices Are Too High

Reuters one hour ago

 Participate
US President Donald Trump expressed concern Monday over oil prices and called on the Organization of the Petroleum Exporting Countries not to raise prices.

"Oil prices are rising too high," Trump said in a tweet. OPEC, please relax and take things simply. The world can not afford a price boom - the situation is fragile! "

 

[cranman]

Hmmmmm.  I thought higher oil prices is what we wanted.  Maybe not that high but $60 -$62 a barrel.  I thought Trump was supposed to help us out with the reval (not a slam on Trump).   Just goes to show that none of us know how this is going to play out.  We all just speculate on what the plan is and the  steps that are left to complete (not a slam on anyone) .

 

Maybe $62 a barrel is OK but not the $70-$75 a barrel. This is getting old real fast again.

 

Oh well.  I guess I'll just keep enjoying the speculations and the great information that everyone keeps posting. 

 

Not enough coffee yet.  Still grumpy.  

 

Have a great day everyone.

[King Bean]

1 hour ago, cranman said:

Not enough coffee yet.  Still grumpy. 

It's ok, Cranman. We're all there. Not enough coffee, a February that grinds on, bitter cold and snow here. And no RV. While AM contends that we need higher oil prices to see things move, others like Brietling say lower oil prices will push Iraq and CBI to make a move. It's all so confusing. Think I will hit the Starbucks drive thru for a 5 shot latte. Happy Monday.

                                                                                                                     

[Pitcher]

Empty Supertankers Speak Volumes About The Oil Market

 Feb 25, 2019, 4:00 PM CST

As the U.S. battles with its OPEC+ rivals over the direction of global oil prices (Trump wants to keep oil prices subdued, while Saudi Arabia and Russia, reeling from years of prices too low to balance their budgets, are desperately hoping to push them higher with another round of production cuts), 12 supertankers sailing across the Atlantic can tell us a lot about the changing supply dynamics in the global oil market.

The tankers have been traveling a route spanning thousands of miles with no cargo other than some seawater needed for ballast. Of course, in normal times, the ships would be filled with heavy, high sulfur Middle East oil for delivery to refineries in places like Houston or New Orleans.

But these aren't "normal" times. Following the OPEC+ agreement to cut 1.5 mb/d, the ships are sailing cargo-less - forgoing profits on half of their journey - just so they can pick up the light crude that U.S. shale producers - which briefly turned the U.S. into a net-exporter of oil for the first time late last year - have been relentlessly pumping, according to Bloomberg.

(Click to enlarge)

That's quite a sacrifice for the owners of the ships, which are traveling 21,000 with nothing to show for it.

The 12 vessels are making voyages of as much as 21,000 miles direct from Asia, all the way around South Africa, holding nothing but seawater for stability because Middle East producers are restricting supplies. Still, America’s booming volumes of light crude must still be exported, and there aren’t enough supertankers in the Atlantic Ocean for the job. So they’re coming empty. Related: Goldman: Brent Oil To Reach $70-$75 Soon

“What’s driving this is a U.S. oil market that’s looking relatively bearish with domestic production estimates trending higher, and persistent crude oil builds we have seen for the last few weeks,” said Warren Patterson, head of commodities strategy at ING Bank NV in Amsterdam. “At the same time, OPEC cuts are supporting international grades like Brent, creating an export incentive.”

As OPEC+ supply declines, shippers are turning to the U.S. for profit growth, analysts said.

 

 

Shippers are counting on the U.S. exports to help the tanker market withstand supply restrictions by the Organization of Petroleum Exporting Countries and allies including Russia. Industry analysts, who actually raised their estimates for what they think the ships will earn this year after the OPEC+ pact was announced in December, are citing rising American shipments as a contributing factor.

There are usually three or four empty supertankers - very large crude carriers in industry jargon - that would sail empty to the U.S. at any one time, according to shipbrokers.

The shift has produced knock-on effects around the shipping market. Daily earnings for the VLCCs, which can haul two million barrels of oil, on the benchmark Middle East-to-China route doubled since last week to $29,494, according to Baltic Exchange data.

"Following a fixing frenzy from the U.S. Gulf Coast late last week, most available tonnage in the Atlantic basin has been soaked up," said Espen Fjermestad, an analyst at Fearnley Securities AS in Oslo. "With ships ballasting West, rates have shifted up also in the East."

And with the spread between WTI and Brent crude widening back toward levels last reached during the October oil-price crash, OPEC+'s production cuts are increasingly looking like a Sophie's choice: Either cut production and cede more market share to the U.S. (shale crude also benefits because it's easier to process into gasoline), or stop the cuts and accept that prices will remain low for the foreseeable future. While it's unclear what OPEC+ will decide at its next meeting in Vienna (will OPEC+ members cave to Saudi and agree to a new alliance that includes Russia and its CIS allies as full partners?),  one thing appears certain. Producers in the Permian are showing no signs of slowing down.

 

https://oilprice.com/Energy/Energy-General/Empty-Supertankers-Speak-Volumes-About-The-Oil-Market.html

[Pitcher]

Vitol Sees Higher Oil Prices As Heavy Crude Supply Shrinks

Feb 25, 2019, 12:00 PM CST

Commodity trading major Vitol expects crude oil prices to rise further as U.S. sanctions on Venezuela and OPEC production cuts squeeze the global supply of heavy crude, Vitol’s chief executive, Russell Hardy, told Bloomberg in an interview.

"From here there’s probably the potential to be a little bit higher," Hardy said. "Oil supply is going to be pretty tight until the third quarter."

Venezuela, Iran, and the rest of OPEC are the factors that will drive this price rise, the first two not so voluntarily, but the latter consciously cutting mostly production of heavier grades rather than lighter ones. At the same time, demand for heavy crude is set to grow further as refiners gear up for the new International Maritime Organization rules on maritime vessel emissions.

 

According to Hardy, the squeeze on heavy crude oil supply, however, will only last for the next six months or so, probably because OPEC will end the cuts once their goal is achieved. However, U.S. production of light crude will continue to grow, Hardy noted, and the second half of the year will see new pipeline capacity additions in the Permian, where all the action seems to be these days, boosting availability of light crude to refineries considerably.

"There could be a question mark over market direction by the fourth quarter of this year," Vitol’s CEO said. "There’s a certain amount of pent-up production that’s awaiting logistics to allow it to be exported. As the pipelines come on, some of the drilled but uncompleted wells will start to hit. We should have a surge in production related to the pipelines."

U.S. crude oil production hit an all-time high of 12 million bpd in the week to February 15 and most of this was light crude. This consistent increase will likely give OPEC a headache in the light crude department.

 

https://oilprice.com/

[Pitcher]

Goldman: Brent Oil To Reach $70-$75 Soon

By Tsvetana Paraskova - Feb 25, 2019, 11:00 AM CST

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As the oil market continues to tighten significantly, Brent Crude oil prices could reach $70 to $75 a barrel in the near term, with an upside potential of exceeding the $67.50 a barrel forecast, according to Goldman Sachs.

The outlook for the oil market through the end of June 2019 is modestly bullish, Reuters quoted the investment bank as saying in a research note on Monday.

Yet, Goldman Sachs sees a possible Brent Crude jump into the $70s as fleeting, because U.S. oil exports and a possible easing of OPEC’s production cuts in the second half of the year could cap the bullish sentiment.

“The oil market will likely continue to tighten significantly this March and April,” Bloomberg quoted Goldman’s note as saying.

OPEC’s cuts and possible acceleration of Venezuela’s supply disruptions will support oil prices in the coming months, according to the bank.

“While prices could easily trade in a $70-$75 a barrel trading range, we believe such an environment would likely prove fleeting,” said Goldman’s analysts, who kept their end-of-the-year Brent Crude forecast at $60 a barrel.

 

 

Last week, oil prices hit fresh 2019 highs, driven up by optimism that the U.S. and China will forge a trade deal and that OPEC’s resolve to rebalance the market will outweigh soaring U.S. oil production.

At the beginning of this week, oil prices fell somewhat after U.S. President Donald Trump, once again, asked OPEC not to take too much crude off the markets. At 11:03 a.m. EST on Monday, WTI Crude was down 2.58 percent at $55.78, and Brent Crude was trading down 2.39 percent at $65.64.   Related: The $32 Trillion Push To Disrupt The Entire Oil Industry

Earlier this month, Goldman Sachs said that it expected Brent Crude prices to hit US$67.50 a barrel in the second quarter of the year as ‘shock and awe’ production cuts by OPEC and increased supply disruptions couple with healthy demand and seasonal inventory declines to drive prices higher.

“Producers are adopting a ‘shock and awe’ strategy and exceeding their cut commitment,” the investment bank said in a research note from February 12.  

“The production losses to start 2019 are already larger than we expected,” Goldman said, noting that more disruptions could be coming due to the U.S. sanctions on Venezuela’s oil industry. 

 

https://oilprice.com/Energy/Oil-Prices/Goldman-Brent-Oil-To-Reach-70-75-Soon.html

[yota691]

Updated .. Oil losses exceed 3% at the level of settlement after tweet Trump

 February 25, 2019 11:01 PM
Mubasher : Oil prices fell more than 3% at the settlement of Monday's trading, after new comments from US President Donald Trump high crude prices and warns OPEC.

US President Donald Trump  Trump wrote in a tweet on Twitter that oil prices have become too high and that OPEC should be calm, noting that the economy can not absorb this increase as "fragile"

The drop in oil comes as US supply of crude increases, either through increased US production or exports.

Last week, the United States announced its production exceeded the 12 million bpd limit for the first time ever in the week ending Feb. 15.

US crude exports increased by 1.243 million bpd to 3.607 million bpd in the same period .

Those levels of US production and exports are undermining efforts by OPEC and its allies to rebalance the market. They have since January cut production by 1.2 million bpd to cut world supply.

On the other hand, Baker Hughes announced last weekend that four crude drilling platforms were closed in the week ending Feb. 22 at 853 platforms.

On the settlement, US Nymex crude futures for April delivery fell 3.1% to $ 55.48 a barrel.

By 7:49 pm GMT, the price of Brent crude for April delivery fell 3.6% to $ 64.67 a barrel.

 

[yota691]

Oil prices fall with Trump's criticism of rising prices

 26 February 2019 11:04 p
Mubasher : Oil prices fell during Tuesday's trading ahead of preliminary US inventory data, and with the president criticizing the rise in crude prices.

By 0750 GMT, the benchmark Brent crude for April delivery fell 0.06% to $ 64.72 a barrel.

US Nymex crude futures for April delivery fell 0.3% to $ 55.29 a barrel.

The US president reiterated his criticism of oil prices yesterday, saying: "It has become very high,"and called on OPEC to be patient with regard to the pace of reduction of crude production.

"The economy can not absorb the increase in oil prices," Trump said.

The OPEC and Russia began in January to reduce production by 1.2 million barrels per day, in order to rebalance the crude market after the sharp decline at the end of last year.

Goldman Sachs said yesterday that the average price of Brent crude will remain under pressure for the lowest level of $ 60 a barrel in the long term, while US crude will be lower $ 55 per barrel as a result of the exit strategy from the process of reducing production.

The initial US inventory data is due to be released by the Petroleum Institute later in the day.

 

[yota691]

Trump tug Oil prices suffered heavy losses

Release Date: 2019/2/25 20:35 • 337 times read

The price of oil fell on Monday after US President Donald Trump resumed his attacks on the Organization of Petroleum Exporting Countries (OPEC), criticizing soaring prices.

"Oil prices are going up a lot, I hope OPEC can keep calm, the world can not afford an increase in prices," Trump wrote in a tweet. 
The price of oil, which was balanced at the start of trading, declined due to the twinkling. 
Brent crude for April delivery fell to $ 66 in London after losing $ 1.11 compared to Friday's closing price. 
In New York electronic exchanges, light sweet crude for April delivery fell 92 cents to $ 56.34.

[yota691]

What is the average annual OPEC oil price that bothered Trump?

Editorial date: 2019/2/25 23:15 • 1447 times read

The price of the basket for January was $ 58.74 per barrel compared to $ 56.94 in December, which indicates that the price of the basket reached since the beginning of this year and until the end of last week 63.55 dollars a barrel, the Organization of the Petroleum Exporting Countries said on Monday.

OPEC's annual basket price index was $ 52.43 a barrel last year. 
The Organization of the Petroleum Exporting Countries (OPEC) said on Monday that the price of basket of raw materials rose on Sunday, six cents to 66.56 dollars a barrel compared to 66.50 dollars a barrel last Thursday. 
The OPEC basket, which is a reference at the level of the policy of production 14 types, namely Sahara (Algeria), heavy Iranian (Basarah) and Iraqi crude exports, crude (Al-Sidr) and the Libyan (Boni) Nigerian, Saudi Arabian light and crude (Mariat) and Venezuelan crude (Girasol), Ecuador (Orient), Zafiro (Equatorial Guinea), Rabi El-Hafayek (Gabon), Gheno ore (Congo) and the UAE's Merban ore.
The Organization of the Petroleum Exporting Countries (OPEC) linked the improvement in prices to what it described as strong fundamentals in the market of supply and demand with signs of reducing the surplus of crude and strong demand for crude oil, especially from Asia and the Pacific. 
According to the OPEC report for the month of February, the total global demand for the Organization's oil in 2018 amounted to 31.6 million barrels per day, or less by about 1.3 million barrels per day from the level of 2017 and expected to decline this year by about 1 million barrels per day from 2018 to reach 30.6 million barrels per day. 
Oil ministers from within and outside OPEC, including Russia, agreed on December 7 to cut production by 1.2 million barrels per day from early 2019 until the end of June to support prices, which fell by 20 percent.
Under the agreement, the Organization of the Petroleum Exporting Countries (OPEC) will reduce production by 800,000 barrels per day (bpd), or 2.5 percent of the output of each member state. 
The 11 non-OPEC countries will also cut production levels by 400,000 barrels, or 2 percent of the output of each non-OPEC member, according to the October production. 
OPEC ministers and their independent producers, led by Russia, are set to hold an extraordinary meeting on April 17 and 18 in Vienna to assess developments in the world oil market and the market's need for adjustments to production levels.

[yota691]

Oil falls again because of Trump's comments

Release date: 2019/2/26 12:12 • 209 times read

{International: Al Furat News} Oil prices fell on Tuesday to continue losses after falling 3% in the previous session, following the invitation of US President Donald Trump OPEC to limit its efforts to raise prices.

Brent crude was at $ 64.66 a barrel, down 10 cents, or 0.2 percent, from the last close. Brent , which fell 3.5 percent on Monday, touched its lowest level since February 14 on Tuesday at $ 64.32 a barrel. 
US crude <LCOc1> was $ 55.21 a barrel, down 27 cents, or 0.5 percent. 
Analysts say the United States, the world's biggest oil consumer, wants to stave off a recent rally in prices, backed by a reduction in two major producers. 
Brent prices rose 8.1 percent between Feb. 8 and Feb. 22. 
Trump on Monday expressed concern over oil prices and reiterated his previous calls for the Organization of the Petroleum Exporting Countries (OPEC) to maintain price stability.

[yota691]

Oil rises 0.9 percent against Opec resistance

 

Arab and international Economy News _ Baghdad Oil prices rose on Wednesday after a report that US crude inventories fell while OPEC appeared to stick to production cuts despite pressure from US President Donald Trump.  US WTI hit $ 55.99 a barrel by 0600 GMT, up 49 cents, or 0.9 percent, on the previous settlement. Views 53   Date Added 02/27/2019

[yota691]

US Energy Secretary warns of bill to sue OPEC

Editorial date: 2019/2/28 23:56 • 165 times read

(Reuters) - The United States needs to be cautious about legislation that would allow Trump's administration to sue OPEC and other oil producers for cuts in crude output because it could lead to unintended consequences that push prices higher, US Energy Secretary Rick Perry said on Thursday. Long term.

"We really need to be careful before enacting legislation that could have a far-reaching impact," he told a news conference at the Energy Department. 
On February 7, the Judicial Committee of the House of Representatives unanimously approved a bipartisan bill known as the Prohibition of Monopolistic Clusters of Oil Production and Export (NOPEC) Act. 
The legislation would amend the US antitrust law to eliminate sovereign immunity that has long protected members of the Organization of the Petroleum Exporting Countries from lawsuits in the United States. The legislation allows the US Department of Justice to sue the organization or any of its members for complicity. 
Sen. Chuck Grassley, a Republican supporter of the use of ethanol from corn as fuel for cars, and Senator Amy Clopocher, a Democrat, presented a similar bill.
Copies of the bill have appeared in Congress over the past 20 years. A bill was approved in 2008 but President George W. Bush never signed legislation to become law. Oil prices are rising in general this year as Opec and Russia cling to cuts in crude output despite pressure from US President Donald Trump. 
"Oil prices are too high, OPEC, please relax and take things simply, the world can not afford a price boom - the situation is fragile," Trump wrote on Twitter this week. 
Last week, a senior administration official said when asked if Trump would support the bill, "we do not support market-distorting behavior, including monopolistic blocs."

[yota691]

OPEC Secretary General: We saved the oil market from collapse

 28 February 2019 04:10 PM
Mubasher : The Secretary General of OPEC that the members of the Organization contributed to solving the problems of the oil industry, and that the revolution of oil production of the US helped to prevent "a big chaos in the oil market."

Mohamed Barkindo told CNBC on Wednesday that OPEC had done a great service to international producers and markets through a decision to cut output.

Since January, OPEC and Russia have started cutting oil production by 1.2 million barrels a day to help restore the price balance of the crude market.

"The decisions taken by OPEC together with non-member partners have literally contributed to saving the industry from total collapse," Barkindo said.

"You can ask producers in the rocky fields of the United States whether they have benefited from the actions we have taken over the years or not," Barkindo said.

At the same time, Barkindo believes that without the American rock production revolution, "the world would have been in a big mess in the energy market, but thanks to increased supply of rock oil, we were able to meet current demand for crude."

The US president has called on OPEC to calm and relax during a tweet via Twitter, pointing out that oil prices are too high.

 

[yota691]

Financial expert: US suppor t for industrial firms will keep oil prices below $ 65

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•  02 March 2019
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•  3:26 PM
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Financial expert Safwan Qusay has ruled out oil prices above $ 70 this year.

Qusai told Wattan news agency that despite the optimism in the negotiations between China and the United States of America and the continuation of OPEC's agreement to reduce US production and sanctions on both Iranian and Venezuelan oil, current oil prices below $ 65 because of the US desire to support industrial companies American. "

"We believe that these prices will support further in the coming period, especially since the statements of Saudi Arabia and the OPEC countries indicate that the level of reduction in the volume of production by 1.2 million barrels for another period of six months at the next meeting in May, we believe that The tense Middle East situation may raise prices in the coming period. "

"Iraq should try to take advantage of surplus cash flows to finance the default deficit and stimulate investment in the productive sectors, especially the solar energy and desalination sector," he said.

[yota691]

Trump attack and US production threaten oil price recovery

04 Mar 2019 12:59 p
From: Sally Ismail

Direct: US President Donald Trump sparked a new conflict with the Organization of Petroleum Exporting Countries through re - tweet in which the tone of the attack against OPEC 's policy, to be this dilemma is the most prominent event in the global markets last week.

In his brief letter , Trump said: "Oil prices are very high, OPEC, please calm down and take things simply, the world can not absorb the increase in oil prices."

 

Trump overshadowed Brent and Nymex  last week, with losses down 2.6% and 3% respectively.

In the first comment by OPEC Secretary General Mohamed Barkindo on Trump's criticism, he said: "They saved the oil market from collapse and the decision to cut production is a good service for producers and global markets.

At the same time, Saudi Energy Minister Khalid Al-Falih said that OPEC is taking a deliberate approach to reducing the supply of crude.

"We take it easy and calm," he said.

OPEC has been adhering to a policy of cutting oil production since the beginning of this year, as the Organization cut its supply by 797 thousand barrels per day in January and is due to disclose its monthly report on March 14.

Meanwhile, media reports said OPEC and its allies would be committed to reducing oil supplies and pressing for greater commitment, noting that current market data indicated they were likely to continue to cut production until the end of the year.

According to Reuters, quoting sources in OPEC, the committee formed to monitor the commitment of the countries participating in the agreement found that the compliance rate of the Convention reached 83% in January.

A survey by the agency "Bloomberg" US that OPEC cut production during the month of February by 560 thousand barrels per day led by Venezuela, Iran and Saudi Arabia.

The US president's message comes almost two months after a new round of oil production cuts by OPEC and outside members was added by 1.2 million barrels per day (bpd) in the first half of 2019.

The decision to cut supply came amid a host of developments on the world stage, topped by supply-side fears as well as a drop in global demand for crude amidst commercial bickering as global economic slowdown slowed.

This decision was preceded by a sharp drop in oil prices, which exceeded 40% during the last quarter of last year.

OPEC's non-OPEC decision on production policy is due to be revised in mid-April.

The US president's tirade was Trump's return to OPEC's criticism again, in line with his approach to the organization last year, since he had not been chased since early December, before the decision to cut directly.

OPEC first implemented the reduction in 2017 to curb crude production, but ended this decision last year as crude prices reached a three-and-a-half-year high.

OPEC has cut estimates of global oil demand growth this year, according to the latest monthly report by the organization.

Following the Trump tug, oil prices recorded the biggest daily drop in percentage terms this year, with a 3.5% loss on Monday for Brent crude and 3.1% for Nymex crude.

The following day, oil prices managed to rise marginally to recover strongly in Wednesday's sessionwith gains of more than 2.5% and managed to close within the green range on Thursday to  erase them in the last session of the week .

But at the same time, oil has made strong gains since the beginning of this year and so far, to get the benchmark crude 20.9%, while the US crude saw an increase of 22.9%.

Essentially, oil prices have recently been supported by political crises as well as OPEC's efforts to boost market balance.

There is still uncertainty about the trade situation as the comments send mixed signals about whether or not to conclude a trade deal between the world's two largest economies.

Tend comments some that there is a need to do more in order to conclude this business deal , but at the same time , others headed that it will be very soon , amid reports that he would be in amatter of weeks .

The situation within the largest oil importing country (China) may have a strong impact on the crude market as factory activity contracted for a third consecutive month in February to its lowest level since March 2016, a new sign of economic slowdown after suffering the worst pace Growth in 28 years through 2018.

At the same time, India's economy registered the slowest pace of growth in five quarters of the quarter in the last quarter of last year, but on the other hand, US economic growth data was better than expected.

In a new tone that could reduce the fears associated with everyone recently, Goldman Sachsexpects that although growth is still subdued, the global economy has already reached the worst-performing stage and will start to pick up again.

Oil production in the United States rose to a new record of 12.100 million barrels per day (bpd) as imports fell to their lowest level since 1996.

Commenting on the surge in US production, BP's chief executive says the rapid pace within the US rocky oil sector is a " brainless market " that does not respond to market signals.

For oil stocks in the United States, it saw a sudden drop 8.6 million barrels reached during the week ending February 22, contrary to expectations , which was referring to an increase of 2.8 million barrels as US companies shut down 10 rigs to drill for oil.

It was also the week elapsed witness to the imposition of US sanctions new against Venezuela, where he called Mike Pence , US Vice President states Allima Group immediate freezing of the assets of the national energy company of Venezuela and the transfer of ownership of Venezuelan assets in their countries of belonging to Nicolas Maduro to the opposition leader Juan Joaidu.

According to official data , Venezuela's oil exports have fallen by about 40% to the level of 920 thousand barrels per day since the application of Trump sanctions.

[yota691]

Oil rises on hopes of trade deal and OPEC supply cuts

 

Arab and international Economy News _ Baghdad Oil prices rose on Monday, supported by OPEC output cuts and reports that the United States and China are close to an agreement to end the bitter-fee dispute that has curbed global economic growth. Brent crude for global trade was $ 65.25 a barrel by 0713 GMT, up 18 cents, or 0.3 percent, from the latest settlement. US crude <LCOc1> was $ 55.94 a barrel, up 14 cents, or 0.3 percent. The price hikes come after reports that the United States and China are close to ending their fruitless trade dispute a year ago. A source familiar with the talks said on Sunday the two countries appeared to have come close to an agreement that would eliminate US fees for at least $ 200 billion worth of Chinese goods, with pledges from Beijing for structural economic changes and the cancellation of tariffs imposed in retaliation for US goods. Views 26   Date Added 04/03/2019

[yota691]

OPEC oil production falls to 4-year low

07 March 2019 10:06 PM
Mubasher : A recent survey showed OPEC output fell from crude to a four-year low in February.

The survey by Standard & Poor's Global Plas said Thursday that OPEC's oil production fell by 60,000 bpd last month to reach 30.80 million bpd, the lowest since March 2015.

Saudi Arabia cut its oil production in February from 10.31 million bpd to 10.15 million bpd, its lowest level since May 2018.

Oil production from Venezuela, which suffers from political and economic instability, also fell by about 60,000 barrels per day (bpd) last month to 1.10 million bpd.

OPEC and its allies have agreed to cut their oil production by 1.2 million bpd from January.

The survey said the level of OPEC's commitment to the agreement to cut production rose to 79% last month.

By 6:15 pm GMT, the benchmark Brent crude for May delivery rose 0.4% to $ 66.23 a barrel.

US crude futures for April delivery rose 0.7% to $ 56.59 a barrel.

 

[yota691]

Oil prices rise to $ 66

Release Date: 2019/3/7 10:50 • 1354 times prescribed

International oil rose on Thursday amid OPEC- led supply cuts and US sanctions on crude-exporting Venezuela and Iran, but price gains were limited by record US crude production and growing commercial fuel stocks.

At 0637 GMT, US WTI crude futures were at $ 56.31 a barrel , up nine cents, or 0.2 percent, from the previous settlement. 
Brent crude was $ 66.22 a barrel, up 23 cents, or 0.4 percent. 
Prices are supported by the efforts of the Organization of the Petroleum Exporting Countries ( OPEC ) and other countries - under the alliance known as OPEC + - to block about 1.2 million barrels per day of oil, in a strategy aimed at reducing supply to markets. 
"From our point of view, OPEC's strategy is to balance the market as quickly as possible and exit the cuts by the end of June to increase production in parallel with rock oil producers in the second half of this year," investment bank Goldman Sachs said in a note on Wednesday.
Traders said the US sanctions on OPEC's oil industry, Iran and Venezuela, also had an impact. 
Venezuelan national oil company PDSA announced this week a maritime emergency because of what it said were difficulties in providing tankers and individuals to export their oil under sanctions.

[Jaygo]

24 minutes ago, yota691 said:

Oil prices rise to $ 66

Release Date: 2019/3/7 10:50 • 1354 times prescribed

International oil rose on Thursday amid OPEC- led supply cuts and US sanctions on crude-exporting Venezuela and Iran, but price gains were limited by record US crude production and growing commercial fuel stocks.

At 0637 GMT, US WTI crude futures were at $ 56.31 a barrel , up nine cents, or 0.2 percent, from the previous settlement. 
Brent crude was $ 66.22 a barrel, up 23 cents, or 0.4 percent. 
Prices are supported by the efforts of the Organization of the Petroleum Exporting Countries ( OPEC ) and other countries - under the alliance known as OPEC + - to block about 1.2 million barrels per day of oil, in a strategy aimed at reducing supply to markets. 
"From our point of view, OPEC's strategy is to balance the market as quickly as possible and exit the cuts by the end of June to increase production in parallel with rock oil producers in the second half of this year," investment bank Goldman Sachs said in a note on Wednesday.
Traders said the US sanctions on OPEC's oil industry, Iran and Venezuela, also had an impact. 
Venezuelan national oil company PDSA announced this week a maritime emergency because of what it said were difficulties in providing tankers and individuals to export their oil under sanctions.

👍

[yota691]

Kuwait: Current oil prices are good for producers and consumers

09:05 - 10/03/2019

 

 

 

Follow - up to the balance of News 
quoted Kuwaiti newspaper Al- Rai, on Sunday, for Kuwaiti Oil Minister Khaled al - Fadil was quoted as saying that the current prices are good for oil producers and consumers. 
"The current prices are good for producers and consumers, as consumer countries see a price of between $ 60 and $ 70 as a good price and suitable for all," the paper quoted him as saying.

[Jaygo]

5 minutes ago, yota691 said:

Kuwait: Current oil prices are good for producers and consumers

09:05 - 10/03/2019

 

 

 

Follow - up to the balance of News 
quoted Kuwaiti newspaper Al- Rai, on Sunday, for Kuwaiti Oil Minister Khaled al - Fadil was quoted as saying that the current prices are good for oil producers and consumers. 
"The current prices are good for producers and consumers, as consumer countries see a price of between $ 60 and $ 70 as a good price and suitable for all," the paper quoted him as saying.

In short what it really says is... LETS ROLL!!! RV!!