OPEC Urges US Shale to Take Responsibility on Output Cuts

12 October, 2017, 00:47 | Author: Regina Lloyd
  • Brent Crude

Remember, higher crude oil prices have a bullish impact on oil exploration and production companies (RYE) (VDE) like Devon Energy (DVN), Whiting Petroleum (WLL), and Newfield Exploration (NFX).

Oil futures fell more than 2 per cent on Friday, ending Brent crude's longest multi-week rally in 16 months as oversupply concerns reappeared as producers have started hedging future drilling.

The West Texas Intermediate for November delivery on Tuesday increased $1.34 to settle at $50.92 a barrel on the New York Mercantile Exchange, while Brent crude for December delivery rose $0.82 to close at $56.61 a barrel on the London ICE Futures Exchange.

"It calls into question how committed Saudi Arabia is to those production cuts", said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.

On Wednesday, OPEC forecast higher demand for its oil in 2018 and said its production-cutting deal with rival producers was clearing the glut after more than three years.

"It would be ambitious to expect shale producers to join the current production cut agreement, but the same could have been said for OPEC working with non-OPEC members to limit production output, and this has actually taken place".




Barclays had raised its price outlook for the fourth quarter of 2018 and the first quarter of 2017. “At the moment, there is no talk of an extraordinary meeting” beyond the session scheduled for next month in Vienna, he said. The four-week moving average for US oil production is up 11.8 percent from a year ago.

Speaking at an energy conference in New Delhi, OPEC Secretary General Mohammad Sanusi Barkindo said oil demand growth in 2018 should be "quite robust", while commercial oil stocks in the world's advanced economies continues to fall.

Longer term, Barclays said it expected "a return to build mode next year", while PVM's Stephen Brennock said the International Monetary Fund viewed the economic recovery as being "on thin ice".

The figures mean Opec has complied 98 per cent with the cutback pledge, according to a Reuters calculation, up from 83 per cent initially reported in August as the September rise was led by Nigeria and Libya which are exempt from the cut.

USA crude inventories probably fell for a third straight week, while refined product stockpiles also likely declined, a Reuters poll showed.

Recommended:

  • Russian Federation  arming Saudi Arabia

    Russian Federation arming Saudi Arabia

    Last month Turkish President Recep Tayyip Erdogan said that Turkey had signed a deal with Russian Federation to buy S-400 missile defense systems.
    Renault replace Palmer with Sainz for Austin

    Renault replace Palmer with Sainz for Austin

    Toro Rosso is made up of a fantastic group of people and I wish them only the best for the future. Therefore, on behalf of everyone at Toro Rosso, I wish him all the very best with his new team.
    Putin, Salman hold talks behind closed doors in Moscow

    Putin, Salman hold talks behind closed doors in Moscow

    Russian Federation and Saudi Arabia are on opposite sides of the war in Syria, but both countries are partners in the oil market. That marked a shift for the kingdom, which buys most of its military kit from the United States and Britain.
  • Twitter to Introduce a New Bookmarking Tool

    Twitter to Introduce a New Bookmarking Tool

    Using #SaveForLater , Twitter product manager Jesar Shah tweeted a GIF of an early prototype of the bookmarking process. Twitter hasn't announced a release date for the upcoming feature , but you should expect updates in the coming weeks.
    Iceland, Serbia reach World Cup finals, Ireland upsets Wales

    Iceland, Serbia reach World Cup finals, Ireland upsets Wales

    With a population of just over 335,000 people, it is by more than a million people the smallest World Cup finalist ever. The 2018 World Cup's first game will feature hosts Russian Federation on June 14 in Moscow's Luzhniki Stadium.
    'Only One Thing Will Work' Against North Korea

    'Only One Thing Will Work' Against North Korea

    He tweeted about it again, this time decrying 25 years of U.S. foreign policy in dealing with the perceived North Korean threat. Kim Jong Un also visited the mausoleum where his father and grandfather, "eternal president" Kim Il Sung, lie in state.
  • Kante ruled out of France's final World Cup qualifier

    Kante ruled out of France's final World Cup qualifier

    That surpassed Raymond Domenech's 41 wins from 71 games (2004-2010) and Michel Hidalgo's equal mark from 75 encounters (1976-84). We have youngsters who have a huge amount of talent and the older players are still on it.
    India bans firecrackers in bid to curb Diwali festival smog

    India bans firecrackers in bid to curb Diwali festival smog

    After the Supreme Court decision, shutters came down on at least 30 shops selling firecrackers in the massive old Delhi market. The apex court was hearing a plea seeking restoration of its last year's order banning the sale of firecrackers in Delhi-NCR.
    Google explains why it got rid of the 3.5mm headphone jack

    Google explains why it got rid of the 3.5mm headphone jack

    Samsung has some of the sharpest displays in the phone business, with both models of the S8 boasting a resolution of 2960 x 1440. Still, other manufacturers such as Samsung have managed to keep the headphone jack while including the features noted above.
  • Hat-Trick Hero Messi Comments On Superb Display

    Hat-Trick Hero Messi Comments On Superb Display

    That would be disaster for a number of reasons, as it would mean Lionel Messi will not be playing in Russian Federation . This was the match where Messi overtook Telmo Zarra as the player with the most hat-tricks ever in Spanish football.

    How to Watch Wales vs. Ireland

    Coleman said: "We don't really talk about anything but what we need to be doing right now". Republic of Ireland travel to Wales tonight for a crucial World Cup qualifier.
    Florida State kicker Ricky Aguayo on a roll after bumpy start

    Florida State kicker Ricky Aguayo on a roll after bumpy start

    They played without starting quarterback Brandon Wimbush due to a right foot injury. "We've got to find a way to do that". Rosier hadn't been sharp all day; his stat line finishes at 19-44 for 254 yards and three touchdowns and an interception.


Popular

World's first PS4 controller-operated Nissan GT-R
A Racelogic VBox Motorsport sensor relays speed data to the "remote" driver. "This was once-in-a-lifetime, truly epic stuff". After this demonstration run, Nissan will tour the GT-R/C around schools in the United Kingdom to promote STEM education.

Trump finds new ways to condemn reporting he doesn't like
Markey asked Pai to "publicly refuse to challenge the license of any broadcaster because the president dislikes its coverage". It was the same meeting where Secretary of State Rex Tillerson also reportedly called Trump a " moron ".

Luongo's Australia through to final WC play-off
Australian midfielder Mark Milligan said: "The next round will be a different match, we will have a different challenge on our hands".

Australia beat India by 8 wickets in 2nd T20
Earlier, Behrendorff took three wickets in the space of eight balls to stun the capacity crowd at the Barsapara Stadium. India captain Virat Kohli was on Tuesday dismissed for a duck for the first time in his Twenty20 worldwide career.

Arrest Warrant Issued For Black Man Beaten By White Supremacists
The warrant against Harris stems from accusations that he attacked someone, which led to the beating inside the garage. Video of the incident shows Harris on the ground being violently kicked and beaten with poles by several attackers.

Diamondbacks guard pool to prevent Dodgers from swimming
In Saturday's game, Logan Forsythe helped lead the charge as he was 3-for-5 with a stolen base, three runs and an RBI. The Diamondbacks went from 69-93 a year ago to 93-69, a wild-card game win over Colorado and a place in the NLDS.

Star Wars "Something Truly Special" for The Last Jedi "Raw Untamed Power"
Rey sees "light", "darkness" and "balance", but fails to see the full scope. It also shows Rey approaching a tree where she finds a number of books.

Feinstein Announces She Will Run For Re-Election In 2018
Feinstein said she supports DACA, but acknowledged the administration's argument that the order is on shaky legal ground. Asked about a poll that half of California voters don't think she should run, she added: "Oh look".

Melania Trump takes dim view of Ivana Trump's 'I'm first lady' comment
The blonde ex-model prepares to publish her reminiscences about life with Donald, kids, marriage and their "insane" divorce. It's not clear if any controversial accusations will appear in Ivana's book, as they have in former tomes by Trump .

Rupp 1st American to win men's Chicago Marathon since 2002
Some 40,000 runners are expected for the 40th running of the marathon which begins and ends on Columbus Drive near grant park. Rupp, who took 2012 Olympic silver at 10,000m, made his charge with three miles remaining and no one had a response.