Wednesday, 20 September, 2017

OPEC increases global oil demand growth outlook by 500000 barrels per day

A price war is looming A price war is looming
Juana Turner | 17 March, 2017, 01:04

Although OPEC is scheduled to decide on a possible extension in May, estimates and guesses are many, and now Rosneft has expressed its view via emailed answers to questions by Reuters.

The latest weakness came in the wake of the monthly Opec oil report which showed Saudi Arabia had lifted production in February - even though the level of output was within the production cap agreed to last November, it triggered a sell off, sending prices below the $US48 a barrel.

EIA forecasts show that USA shale oil production is expected to rise again in April by 109,000 bpd to 4.96 million bpd suggesting that shale is surely making a comeback at this level of oil prices.

So far, Saudi Arabia has shouldered the bulk of OPEC cuts, trimming February output to 10.011 million barrels a day, which is below the ceiling imposed by the agreement.

Some market watchers say if OPEC fails to extend the production cutback agreement for months, prices could snap back to the $30 a barrel range.

Oil has got the wobbles after yesterday's rally, giving up gains as the dollar bounces from its lows.

OPEC's signal of complications in managing the global glut saw West Texas Intermediate crude fall another 1 per cent to US$47.19 a barrel, adding to a steep decline over the past fortnight. Opec producers have implemented almost 98 per cent of the agreed cuts as per latest data. The contracts ended 89 cents and $1.14 higher respectively Wednesday.

In its widely-watched monthly oil market report, the Paris-based energy watchdog for rich countries said that compliance by Opec with its output cutting deal was 98 per cent last month, but only about 37 per cent by the 11 non-Opec member countries that joined in the deal.

That data, referred to as "secondary sources", showed OPEC as a whole getting closer to full implementation of the cutbacks, with output falling in February by 139,500 barrels a day to 31.958 million a day.

There were also mutterings about OPEC's own members breaking ranks over the new production targets, including kingpin Saudi Arabia, the world's biggest exporter of oil.

In addition, OPECs said crude inventories in developed countries rose above the five-year average in January, despite production cuts by some of the world's major exporters.

Oil prices have risen for the second day as USA data showed a fall in crude inventories after it had soared for nine consecutive weeks.

Oil prices cracked sharply last week, as optimism about markets achieving balance faded amid stubbornly high U.S. inventories and rising United States output.

Crude prices are still higher than $40 per barrel a year ago and a 12-year low of about $28 in January 2016.

Influential U.S. investment bank Goldman Sachs cast a positive light on the numbers, saying compliance with production cuts remains high.

Recommended

  • Samsung Galaxy S8 features industry's first high-speed shooting function

    Samsung Galaxy S8 features industry's first high-speed shooting function

    USB-C charging will be incorporated into the Galaxy S8, with clients profiting from this refined, reversible type of association. Another leak on the Chinese microblogging website has revealed that the Samsung Galaxy S8 might be available in a 6GB variant.
    Ben Woodburn names in Wales squad for Ireland clash

    Ben Woodburn names in Wales squad for Ireland clash

    He's training with global players everyday so it's a small transition and there won't be any problem for him. We weren't getting excited about Ben, we already knew about him.
    Mark Your Calendar for Dave Chappelle's New Netflix Specials

    Mark Your Calendar for Dave Chappelle's New Netflix Specials

    Netflix will be simultaneously releasing two Chappelle stand-up specials next Tuesday. "All manner of things kill white people". Now that the March 21 release date is almost upon us, Netflix has shared a more fleshed-out trailer to get us excited.
  • Fellow Clerks Push Gorsuch Confirmation

    Fellow Clerks Push Gorsuch Confirmation

    And he wants Neil Gorsuch to help him do it. "That's the type of judge we need". Public interest group People for the American Way added its voice to the call.
    Patty's Day quandary: corned beef vs. Lenten Friday

    Patty's Day quandary: corned beef vs. Lenten Friday

    In the past, Cardinal Adam Maida and Cardinal Edmund Szoka both gave special dispensation and blessing allowing meat when St. Ecclesiastical law is essentially set up by the Church hierarchy, and thus can be "dispensed" under certain circumstances.
    A Week to Forget for Manchester United

    A Week to Forget for Manchester United

    Rostov have lost only three of their last 14 games in European competition (including qualifiers W4 D7). Like Rostov , Rubin Kazan's Central Stadium has also been banned by the Russian Premier League .
  • The Nintendo Switch has sold more than 1.5 million worldwide

    The Nintendo Switch has sold more than 1.5 million worldwide

    Tech enthusiasts should no longer worry as stocks for Nintendo's hybrid console, the Switch , has recently been replenished . The boost for the Toys R Us website was big, too, with February traffic up 813 per cent over January.
    Cupcakes and cash not enough: Star linebacker chooses Pats over Jets

    Cupcakes and cash not enough: Star linebacker chooses Pats over Jets

    Dont'a Hightower is a gifted player, and if the Jets do sign him, he would be one of the highest paid inside linebackers around. And like the rest of the free agents who have passed through those doors this week, he also left without a contract.
    Baby dies after babysitter's 911 calls wouldn't connect

    Baby dies after babysitter's 911 calls wouldn't connect

    The child was later pronounced dead at an area hospital. "I want to hear from T-Mobile that the problem has been fixed", she says. Mike Rawlings, the mayor of Dallas, is promising to fix the so-called "ghost" calls that are plaguing the city's 911 center.
  • Kevin Love Returns Thursday Night For Cavs, Will Start Against Utah

    Kevin Love Returns Thursday Night For Cavs, Will Start Against Utah

    Sanders is expected to play with Canton on Saturday and remain with the Charge during the Cavaliers' upcoming road trip. The Cavs have 16 regular season games left for Love and Smith to get ready for the playoffs.
    California Lawmakers Blast Trump's Move To Roll Back Car Pollution Standards

    California Lawmakers Blast Trump's Move To Roll Back Car Pollution Standards

    The Clean Power Plan was an Obama-era initiative that compelled USA states to cut down their carbon dioxide emissions. The California standard is now used by at least a dozen, mostly Northeastern states, including NY and MA .
    BBC team pelted with 'boiling rocks' on Mt Etna

    BBC team pelted with 'boiling rocks' on Mt Etna

    The clip continues in a snowcat, where a man holds a paper towel to stanch the bleeding from his head and hugs his wife. ET), "threw pieces of lava in the air and ten people in the area were hit and injured, none seriously".

Drones showing up weaknesses in missile defence plans Drones showing up weaknesses in missile defence plans Perkins pointed out the obvious - that deploying large surface-to-air missiles as a defence was not good bang for your buck. The AN/MPQ-53 at the heart of the system is known as the " Phased array Tracking Radar to Intercept on Target", or PATRIOT.

Coral Reefs Are Dying, Only Hope Is Halting Fossil Fuel Emissions Coral Reefs Are Dying, Only Hope Is Halting Fossil Fuel Emissions It is worth worrying about, though, because of the fact that coral bleaching has happened in that same area two years in a row. While the faster-growing coral can usually recover in between bleaching events, that's not an option for others.

Somalia ship hijack: 'Pirates' exchange gunfire with naval forces Somalia ship hijack: 'Pirates' exchange gunfire with naval forces The pirates drained the tanks of the tanker and stole all the fuel on board, but also demanded for ransom to release the vessel. The Sri Lankan foreign ministry has confirmed that eight of its nationals are on board the vessel.