Crude Oil Prices Settle Higher as OPEC Reportedly Mulls Modest Output Hike

Members of the Organization of Petroleum Exporting Countries (OPEC) are discussing an agreement that would raise oil output by 300,000 to 600,000 barrels a day (bpd) over the next few months, Bloomberg reported, citing people briefed on the talks.

That is well below the 1.5 million bpd uptick in production touted a few weeks ago, reducing investor fears of a significant slowdown in rebalancing in oil markets, which could potentially hurt oil prices.

The discussions come as OPEC attempts to placate opposing demands from its members and Russia. Russia favours a large output hike, while other OPEC members including Iraq and Iran believe production should be maintained as oil prices still need to be supported.

OPEC and its allies’ 1.8 million (bpd) production-cut agreement agreed in November 2016 has played a key role in ridding the market of excess crude supplies. The OPEC-led deal is expected to come under review at the oil-cartel’s meeting later this week.
more at source: https://www.investing.com/news/commodities-news/crude-oil-prices-settle-higher-as-opec-reportedly-mulls-modest-output-hike-1497335

Related Posts

Oil Trades Near $44 as Goldman Says OPEC Action Is Insufficient

Futures slid 0.5 percent after advancing 1.2 percent earlier. Oil may slip below $40 unless there are sustained inventory declines and a drop in the rig count, according to Goldman Sachs. U.S. crude stockpiles probably fell by 2.85 million barrels last week, a Bloomberg survey showed before an Energy Information Administration report Wednesday. “The market is still searching for a new equilibrium, and in particular for a lower band for the oil-price range,” said Jan Edelmann, an analyst at HSH Nordbank AG in Hamburg. Investor sentiment is “close to its lows,” which may cause a “renewed downswing in prices to sub-$40.” Click Read More below for additional detail.

ATA, State Trucking Associations Call on Governors to Provide Truck Parking Funds

The American Trucking Associations, through its federation of 50 state associations, called on the governors of every state to prioritize truck parking with their infrastructure spending priorities. In a letter sent to every governor, ATA and state trucking associations spelled out the numerous new resources provided by the federal government, including new funds from the Infrastructure Investment and Jobs Act, to improve and expand truck parking facilities. “Construction of new truck parking capacity at rest areas or adjacent to private facilities is eligible for funding, as are improvements that allow for increased parking capacity at nontraditional locations, such as weigh stations and commuter lots, when appropriate,” the letter said. “Some states have already utilized these resources to increase parking capacity or improve the operational efficiency of existing facilities.”

The Iran Deal Is Dead; Here’s What That Means for Crude Oil Prices

Short term, oil-pricing volatility will continue. Traders will likely consider any forward interruption – perceived or actual – in Iranian crude export flow as upward pressure on global prices. If this happens and JCPOA is not immediately closed, (i.e., should those second and third possible scenarios I mentioned play out), there will be a pullback. Overall, other factors have been contributing to an increasing floor for the oil-pricing band, supported by continuing OPEC production problems in Venezuela, Nigeria, and Libya. Click Read More below for additional information.
Back To Top
×Close search
Search