Oil output cuts succeeded but future cloudy – There is a danger of Opec, non-Opec members exceeding their vision due to current rally in oil prices, energy expert says – Oil output cuts Opec nonOpec
Oil output cuts Opec nonOpec Oil output cuts Opec nonOpec Oil output cuts Opec nonOpec Oil output cuts Opec nonOpec Oil output cuts Opec nonOpec Oil output cuts Opec nonOpec Oil output cuts Opec nonOpec Oil output cuts Opec nonOpec Oil output cuts Opec nonOpec Oil output cuts Opec nonOpec
Abu Dhabi: Opec and non-Opec member countries have fulfilled their vision by cutting production to support oil prices, an energy expert from S&P Global Platts said in Abu Dhabi on Sunday.
“The oil price today is significantly higher than what it was thought a year ago and what it indicates is that Opec and non-Opec production cuts have fulfilled a vision that Opec and Russia had when they came together almost two years ago [but] there is a danger of exceeding the vision, which is what people are talking about in the market right now,” said Dave Ernsberger, global head of energy pricing at S&P Global Platts
He also said the current oil price rally is really an important existential question for the Opec-non-Opec collaboration.
“Does it persist past June? Does it persist past the end of the year? If it doesn’t, what is the messaging around that? Oil inventories are almost back to [a] five-year average,” he added.
Oil prices are currently trading at three-year highs with Brent, the global benchmark, at $74.06 (Dh272.02) per barrel and West Texas Intermediate (WTI) at $68.40 per barrel when markets closed on Friday.
Production cuts by Opec and non-Opec member countries, and geopolitical tensions in the Middle East have been supporting oil prices over the last few months.
“The stark and dramatic fall in Venezuelan production is on everybody’s minds, whether they articulate it or not, and we must not forget it was only a few short years ago that there weren’t enough inventories and there were not enough production and demand was quite rampant.”
Speaking on the launch of yuan-denominated crude oil futures by China, Ernsberger said the futures contract on the Shanghai International Energy Exchange (INE) will undoubtedly help the cause of those who would like to see oil traded in yuan on the spot market globally but the bigger impediment to that will be the freedom with which the yuan circulates as a global currency itself.
“The first country which would be keen to trade in [the] Chinese currency would be Iran as they are not happy to be beholden to the US Treasury,” he said, adding that the launch of Chinese crude oil futures is a seminal moment in the history of oil trading.
-Who’s to blame for costly oil? Saudis, Russia and Trump himself – Rising oil prices are now the latest target in President Donald Trump’s cross-hairs. The nation’s tweeter-in-chief complained Friday about OPEC fueling – Blame costly oil Saudis Russia Trump
-Oil pulls back from gains; OPEC says glut nearly gone – Oil prices on Thursday hit highs not seen since 2014, built on the ongoing drawdowns in global supply and as Saudi Arabia looks to push prices higher, though U.S. crude gave back gains in the afternoon to finish lower – Crude Oil OPEC glut Saudi Arabia
-Escalating Middle East Tension Could Trigger Oil Prices To Hit $100 Per Barrel – Oil prices could soon soar to $100 per barrel amid growing fear about conflict in the Middle East, according to an oil analyst for CNBC – Oil Prices $100 Barrel
– IEA: OPEC Mission Near Completion as Oil Glut Vanishes – OPEC is on the verge of “mission accomplished” in its quest to clear the global oil glut that caused the worst industry downturn in a generation – IEA OPEC Crude Oil Glut
-Is Russia Cheating On The OPEC Deal? – After three months of steady output, Russia’s crude oil production increased in March to 10.97 million bpd, the highest level since April 2017, as the top two Russian companies boosted their production – Russia Cheating OPEC Deal
-Oil price crosses $70 amid Iran deal tensions – Oil prices rose as investors saw increasing possibility that the US could withdraw from the historic Iran nuclear deal – Crude Oil price dollars 70 Iran tensions
-Is $70 oil the new normal? – The global economy is poised to cope well even if oil prices will remain at around $70 per barrel throughout 2018, energy experts said – Dollars 70 barrel crude oil shale oil
-Will oil prices remain strong for the rest of the year? – The oil inventory trajectory anchors oil prices in the short term, and the cost of bringing on the marginal barrel of US tight oil supply serves as the medium-term anchor for prices – The oil inventory trajectory anchors oil prices in the short term, and the cost of bringing on the marginal barrel of US tight oil supply serves as the medium-term anchor for prices – Crude Oil prices