Finance

Saudi Arabia Cut Crude Exports in January After OPEC Agreement

Saudi Arabia Cut Crude Exports in January After OPEC Agreement”

Futures lost as much as 1.9 percent in NY after gaining 0.6 percent last week. "The OPEC cuts were good enough to prevent a repeat of the glut of previous year, but it's a different story if you want to have oil at US$60 or US$70". All of this has combined to drive prices lower.

May West Texas Intermediate Crude Oil closed at $49.31, up $0.07 or +0.14%.

OPEC's latest monthly report showed global oil stocks in January rose to 278 million barrels above the five-year average. Oil slid 84 cents to $47.94 at 8:40 a.m.

Saudi energy minister Khalid al-Falih has said the kingdom will adhere strictly to its commitment to cut output and that state oil giant Saudi Aramco was cutting exports. An OPEC panel is scheduled to meet this month to review compliance with the current deal. "They will more likely opt for income and will push to get help from non-OPEC".

Device cabin ban on some USA flights from Mideast
Delta Air Lines and United Airlines, the only two USA carriers which operate to the Middle East, decline to comment. All other devices, such as laptops, DVD players and game consoles have to be stored along with checked baggage.

Military action 'an option' against Kim
North Korea has carried out two nuclear tests and a series of missile launches since the beginning of a year ago . On Friday, Trump took to Twitter to say China had "done little to help" in North Korea's nuclear program.

Trump taps Kellyanne Conway's husband for head of Justice Department's civil division
As the Journal notes, Conway's biography says that he has "worked on major securities law cases and deal litigation ". Conway is a partner at the NY law firm Wachtell, Lipton, Rosen & Katz.

Despite thin Asian trading that resulted from a Japanese holiday, the dollar edged down against its primary trading partners, with the dollar index starting the week at 100.140.DXY, a 0.16 percent decline. At the same time, high inventories internationally have slowed new purchases, putting a downward pressure on prices. It also estimates that US WTI and Brent crude oil prices will average $56.2 per barrel and $57.2 per barrel, respectively, in 2018. It was the biggest decline since November. We haven't seen any signs of a drawdown in global inventories so far this year and this is a big risk going forward too. Many shale producers view $50 as a benchmark price for profitability.

"An extension to the cuts may be necessary before the market will rebalance, which may be easier said than done as that would involve conceding further market share to the US", Erlam said.

"The OPEC cuts are real and are cleaning up the market", Citigroup analysts including Seth Kleinman wrote in a report earlier this week. Deutsche Bank AG predicted Thursday that the group will extend the cuts not only through the end of this year, but also through the end of 2018. Opec's 11 members with supply targets cut output to 29.68 million bpd in February, 123,000 bpd more than required by target.

There is also disparity between official Opec supply data and secondary source data which makes it hard to gauge the extent of supply cuts.



Like this

Latest


21 March 2017
USA issues trade challenge at fraught G20
So far, he is one of the only members of Trump's Cabinet who has sought to develop relationships with foreign leaders. Both changes came about at the behest of the United States delegation, backing other G-20 members into a corner.

21 March 2017
Orly airport: France launches terror investigation
After wrestling the servicewoman's assault weapon and separating himself from her, Belgacem was shot dead by the other soldiers. The injured police officer had attempted to stop Belgacem at a checkpoint near Le Bourget, another airport near Paris .

20 March 2017
Trump, in deal-making mode, says conservatives backing health bill after 'changes'
It would take the profits that insurance companies gain from denying claims out of the process of providing health care. But everybody across the country gets the same tax credit, no matter how much insurance costs in their state.



Recommended