Home » Money

Saudi Arabia, Iraq to work for oil market stability

14 November, 2018, 06:34 | Author: Lawrence Cooper
  • The bulk of Iraq’s oil is exported via its southern terminals which account for more than 95% of state revenue

Saudi Arabia and Russian Federation are close, especially as a result of their pact in late 2016, along with other OPEC and non-OPEC producers, to curb output by 1.8 million barrels per day in order to prevent prices dropping too far - but oil markets have changed since then, largely as a result. This was announced by the Minister of energy of Saudi Arabia Khalid al-falih following the meeting of the Ministerial monitoring Committee of OPEC+.

"There are many countries that are suffering production declines, therefore we need to continue to invest", U.A.E. Energy Minister Suhail Al Mazrouei told reporters on Sunday in Abu Dhabi.

Oil prices have shed a fifth of their value in just one month after surging to a four-year high in early October, driven by a combination of factors centred on higher supply and fears of sluggish demand.

Saudi Arabia's 180 is good news for USA shale companies, especially high-debt frackers that are sensitive to price swings.

However, at the global level, it will be a new blow to consumers, who will have to pay more for gasoline, and will increase transport expenses of the companies.

Senate Minority Leader Chuck Schumer, a New York Democrat, had previously supported legislation that would remove an existing immunity shield that prevents the oil cartel and its members' national oil companies from being sued under US antitrust law.

Trump risks testing Saudi patience - or even provoking the kingdom's ire - at a particularly vulnerable moment, with the US decision to reimpose sanctions on Iran threatening to increase prices.

Gaza flare-up kills Israeli officer, seven Palestinians
Medics and Hamas officials said at least seven people were killed, four of them militants, including Hamas commander Mr Baraka. Egyptian and United Nations officials have been mediating between Israel and Hamas in efforts to reach a long-term truce deal.

Apple devices are about to invade Amazon
Of course you'll want to run a full back up of all your data first, because you'll get your MacBook back with a blank drive. Apple has announced two new replacement programs that impact the iPhone X and the 13-inch MacBook Pro without a Touch Bar.

Agrabyadong-agrabyado! Ping says justice is the clear victim in Imelda case
Graft is a bailable case, however, which means Marcos may be given provisional liberty while she is appealing the conviction. It stems from private organisations Marcos, 89, created while holding a variety of posts in government.

Benchmark Brent crude, which had been trading above $80 a barrel recently, now hovers just over $70 after the US sanction waivers on Iran.

Through large production cuts starting at the beginning of 2017, they managed to push up oil prices from below US$30 a barrel to over US$85 a barrel in October, strongly improving their revenues. Talk out of the joint meeting of OPEC and non-OPEC producers on Sunday indicated possible production-cut talks from countries in and out of the cartel come December, which could catalyze another rally in oil.

One of OPEC's biggest problems is the surge in US output. US shale output is also on a tear and will help total American production grow by at least 1.3 million barrels by 2025, according to the Energy Information Administration. The market should be balanced by the middle of next year, though there are forecasts for a surplus of 1 million to 1.4 million barrels a day, he said.

According to Amrita Sen, the Chief oil analyst at London-based Energy Aspects Ltd., considering the fact that the sanctions imposed on Iran were much less stringent than expected, the Kingdom of Saudi Arabia is acting responsibly by taking the step to reduce the oil production that it had earlier massively increased in order to offset the expected drop in Iranian oil supplies.

"The balances for 2019 do show, especially in the first half of the year, that there will be significant global oversupply", Petromatrix analyst Olivier Jakob said.

"One thing that is abundantly clear, OPEC is in for a shale shocker as United States crude production increased to a record 11.6 million barrels per day and will cross the 12 million threshold next year", Innes said.

In fact, all three countries are pumping at or near record highs, with other OPEC members and exporting nations also turning on the taps.

Recommended:



Popular

19 things you can do to help California wildfire victims right now
Kim Kardashian West, Will Smith and Caitlyn Jenner, have also had to evacuate their properties in Southern California . Two wildfires also continued to wreak havoc in southern California , forcing hundreds of thousands of people to flee.

First two Muslim women elected to US Congress
Democrats captured a House majority, breaking a four-year Republican stronghold over both chambers of the US Congress. She won a seat in the state's legislature back in 2016, becoming the first Somali-American lawmaker in the country.

Palace shock as Duchess Meghan's personal assistant quits
The 37-year-old eventually wore a diamond and platinum headpiece chosen by the Queen , but not before a bit of royal drama ensued. To accessorize, the Duchess of Sussex opted for a simple black clutch with gold chain detailing and classic pumps (also black).

Kim Kardashian forced to evacuate home due to wildfire
The TV series " Westworld " is among the many productions that have filmed at the ranch in the mountains west of Los Angeles . Actor Mark Hamill and his family safely evacuated their home, which is "dangerously close" to the fire, he said.

Trump, Macron may clash on European defense in Paris talks
House of Representatives to Democrats who may use their newfound power to launch investigations into Trump and stymie his agenda. Trump's tweet just after landing in Paris that was highly critical of Macron is expected to strain the US-French relationship.

Nigeria’s Mayowa Nicholas debuts on Victoria’s Secret runway
During this year's show, she had her final walk wearing wings made of white feathers, feather heels, and a sparkly top. Speaking to Vogue Australia , she said: "Everyone knows that I love boxing, but this year I added functional training.

Trump expects next summit with North Korea's Kim early next year
Seoul's Foreign Ministry also expressed hope that the USA and North Korea can quickly reschedule a high-level meeting. But the Blue House would not reveal the reason for the postponement and referred questions to the State Department.

Man Killed After Shark Attack In Whitsundays
Christidis was taken by helicopter to the Mackay Base Hospital, 100 kilometres (60 miles) to the south, where he died. Following the first two attacks, the state government rolled out drumlines in the Harbour, killing 6 tiger sharks.

Anger over Melbourne Cup horse death
The Irish five-year-old fractured his right shoulder just 600m into the race but medical staff were unable to save him. O'Brien called the death "very sad" but said it was lucky jockey Ryan Moore remained unharmed.

Democrats to retake U.S. House, GOP to retain Senate
Claire McCaskill in Missouri and Attorney General Mike DeWine defeated Democrat Richard Cordray in the race for OH governor. Nearly a quarter of voters considered immigration to be the top issue, while another one-fifth said it was the economy.