After oil turbulence, something to cheer - Thu, December 27 2018

Oil producers to have extra meeting if output cuts 'not enough': UAE

Oil producers to have extra meeting if output cuts 'not enough': UAE

Furthermore, we could start to see increased foreign demand for USA crude oil if the dollar continues to weaken.

The measures might have to include deeper cuts seeing as the 1.2-million-bpd announced by OPEC+ earlier this month failed to impress a market in turmoil.

The West Texas Intermediate for February delivery rose 3.69 US dollars to settle at 46.22 dollars a barrel on the New York Mercantile Exchange, while Brent crude for February delivery increased 4 dollars to close at 54.47 dollars a barrel on the London ICE Futures Exchange.

The decline in prices prompted U.S. shale producers to cut back on their drilling plans for next year.

Officials from Iraq, Kuwait and the United Arab Emirates agreed with Saudi Arabia's expectation that the group, along with Russian Federation and other oil producers, will extend the agreement for another six months.

But if oil companies curb activity and the economy doesn't perform as badly as the stock market suggests, then Flynn warns that oil prices could spike in 2019.

The macroeconomy and its impact on oil demand continue to put pressure on prices.

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The Organization of the Petroleum Exporting Countries (OPEC) may hold an extraordinary meeting if the oil market fails to get balanced, according to UAE Energy Minister Suhail al-Mazrouei.

USA oil prices recover in thin trading even though the investors faced concern over the health of the global economy.

In wider financial markets, investors were still anxious as the S&P 500 Index of equities stands just 7 points away from completing a full-blown bear market drop. We expect OPEC/non-OPEC producers to reach full compliance with their latest cut by March at the latest.

"The main input over the weekend has been the continued intervention by OPEC members", said Olivier Jakob, managing director at Petromatrix. Bloomberg quoted a Rakuten Securities analyst as saying, "There are several bearish factors in oil markets, and the situation won't improve anytime soon".

West Texas Intermediate crude for February delivery climbed $1.51/bbl to $44.04/bbl at 9:50 a.m. on the New York Mercantile Exchange.

The benchmark Brent crude price slid to $49.93 on Christmas Eve after collapsing by more than 6pc under the weight of growing fears of a United States shale resurgence. Total volume traded Monday was about 42 percent below the 100-day average ahead of the Christmas holiday Tuesday. They had fallen 6.2 percent to $50.47 a barrel in the previous session - the lowest since August 2017.

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