Home » Money

OPEC Cut Was Not Easy

13 December, 2018, 22:53 | Author: Lawrence Cooper
  • US investment banks see low oil prices despite OPEC cut

"Our key conclusion is that oil prices will be well supported around the $70 per barrel level for 2019", analysts at Bernstein Energy said on Monday. But amid mounting global uncertainty on everything from trade and monetary policy to politics, that forecast is far from consensus.

The next OPEC and non-OPEC ministerial meeting is scheduled to convene in Vienna, Austria, in April next year.

Despite this, the outlook for next year remains muted on the back of an economic slowdown.

That's despite Saudi Arabia's energy minister Khalid Al-Falih announcing Friday that 900,000 barrels a day of the kingdom's crude will be taken out of the market between November and January, in addition to cuts from OPEC's allies.

Futures in NY were little changed, after Monday's 3.1 percent drop erased gains following last week's pact between Saudi Arabia, Russia and other major producers to curb output.

The eventual decision to cut production by 1.2 million barrels per day (bpd) for the first six months of 2019 provided crude prices with a welcome boost.

"OPEC+ cuts alone may not have been enough to completely convince investors", said Sungchil Will Yun, a senior commodities analyst at HI Investment & Futures Corp., said by phone from Seoul.

He said that the producers chose to meet in April instead of June "to allow us to take the required decision", before the six months are up.

China prepares mission to land spacecraft on moon's far side
To overcome that, a satellite was blasted into the moon's orbit in May, to act as a link between the lander and Earth. It's expected to land in early January after 26 days of flight, said China's Aerospace Science and Technology Corp.

Dolphins take down the Patriots on last-second hook and ladder
Drake started to run and then looked to make a pitch himself before realizing he had some blocking down field and few defenders. Miami also moved into a tie with Baltimore, Indianapolis and Tennessee for the No. 6 AFC playoff spot.

The Game Awards 2018
Though we we get a glimpse at the upcoming game, its release date is now "at least three years away". Keighley has promised at least 10 new game announcements this year.

"The surge in USA supply in recent months should be a reason for caution", Bank of America Merrill Lynch said in a note on Monday.

U.S. crude stockpiles fell by 1.2 million barrels in the week to December 7, the U.S. Energy Information Administration said, smaller than the draw reported by industry group the American Petroleum Institute on Tuesday and less than half the draw of 3 million barrels analysts had forecast. According to PVM, investors have pulled almost $50 billion out of the two major crude oil futures contracts since the latest rout started in October.

On Tuesday, oil prices rose amid broad expectations that the upcoming OPEC meeting would yield a deal on production cut.

Citi, meanwhile, sees oil going nowhere in 2019 and staying at $60 a barrel. The UAE, Opec's fourth largest producer, has been pumping around 3.0 million bpd.

That sentiment was echoed by commodity hedge fund Philipp Oil, which said in an investor letter that while Brent has found a floor of around $60 a barrel after the supply limits were announced, weaker oil demand and booming US shale output will keep markets oversupplied.

US based Capital Economics, meanwhile, sees an average of $63 a barrel over the course of 2019.

Brent for February delivery climbed 23 cents to settle at $60.20 a barrel on London's ICE Futures Europe exchange. Saudi Arabia is now the world's largest oil exporter. Futures settled 2.8 percent lower at $59.97 on Monday.

Recommended:



Popular

NASA Voyager 2 probe enters interstellar space 11 billion miles from Earth
NASA said that since the spacecraft could last billions of years, they may one day "be the only traces of human civilization". The PLS measurements of this "solar wind" plummeted to zero on November 5-the official date of Voyager 2's departure.

It took three games for Bulls to revolt against their new coach
With Kris Dunn and Bobby Portis back in the lineup for the first time since October, the Bulls took a 12-point lead to halftime. "I mean, obviously it's been very good for us, winning our last couple games, so we want to keep it going", Rozier said.

Foden agrees to contract which keeps him at club through 2024
After dropping two matches out of three in the Premier League, the Brazilian stressed how important it was to bounce back. The World Cup winner's position has been the subject of scrutiny, but he hopes to contribute more goals .

Does Meghan Markle's Alleged 'Difficult' Behavior Cost Her Another Aide?
So far, the palace has remained tight-lipped apart from its denial of a feud between Kate and Meghan over the treatment of staff. The Duchess has previously said that she wakes up at 4.30am to do yoga, which "heals the mind".

Storm in southeastern U.S. cancels flights to, from San Diego
A major winter storm is threatening to deliver snow, ice and flooding across much of the United States over the next few days. Cooper said emergency crews, including the National Guard, worked overnight to clear traffic accidents on major roadways.

Banyana drawn with Germany in Group B
Australia were among the top seeds but Alen Stajcic's side must face Brazil and Italy as well as debutants Jamaica in Group C. Banyana Banyana have been drawn against the likes of Germany and Spain in Group B for the 2019 FIFA Women's World Cup.

Weather Could Cause Delay of SpaceX Cargo Mission Launch to ISS
An automatic system within the booster sensed the problem, and sent the booster toward a "water landing" in the Atlantic. The SpaceX Dragon capsule will be launched aboard a Falcon 9 rocket, with liftoff scheduled for 10:16 a.m.

Lebanon envoy to UN: Israel is violating UN resolution
Officials said the tunnel is being dug from the Lebanese village of Ramyeh and has already crossed into Israeli territory. However, the Israelis have violated Lebanese land, sea and airspace more than 1,300 times this year through November 15.

Isha Ambani’s sangeet ceremony: Priyanka, Shah Rukh, Aishwarya-Abhishek perform
B-town celebs including Salman Khan , Katrina Kaif , Priyanka Chopra , Nick Jonas , Karan Johar and others have headed to Udaipur. Superstar Shah Rukh Khan, Karan Johar and global sensation Taylor Swift will also regale the audiences with performances.

Cheteshwar Pujara reaches 5000 test run, equals Rahul Dravid
Two came off Cummins; the first a pull shot that sailed for six and the other a proper cover drive that cleared the ropes as well. Marcus Harris nearly caught it, with the ball barely crossing over the ropes and the umpire took some time to call it a six.