Oil Falls to Near $57 on OPEC-Cuts Review, Increase in U.S. Rigs

Futures fell 0.3% in New York after climbing 2.5 percent in the previous two sessions. Drillers boosted the rig count by two to 751, a three-month high, according to Baker Hughes data on Friday. OPEC-led output curbs may end earlier than scheduled if the market re-balances by June, Kuwait’s then-oil minister said Sunday.

Oil is heading for a second yearly gain as the Organization of Petroleum Exporting Countries and its allies including Russia extend supply cuts through the end of 2018. The extension includes an agreement to review the cuts in June, raising questions of how OPEC will eventually phase out the reductions. Shale explorers have signaled they’re gearing up for a drilling surge next year as hedging rose for an eighth week to a record.

“If inventories fall a lot now, then the chance increases of OPEC phasing out cuts earlier than they have recently said,” according to Jens Pedersen, senior analyst at Danske Bank A/S. “The market is figuring out which stance to take on this. That said, it’s still a long way until the June review meeting.”

Russia is keen to end output cuts as early as possible, Issam Almarzooq, then Kuwait’s oil minister, told Bloomberg in Kuwait City on Sunday. He was replaced on Monday by Bakheet Al-Rashidi, who led Kuwait’s international refining unit. OPEC will study an exit strategy from the global accord at its next meeting in June, and prices should remain near current levels in 2018, Almarzooq said.
more at:  https://www.bloomberg.com/news/articles/2017-12-11/oil-halts-advance-near-57-as-u-s-drillers-add-rigs-to-fields

Related Posts

Crude Oil Prices Settle Higher as Saudi Says Output Hike Will Be Reasonable

Traders remained concerned rising output would slow the rebalancing in oil markets as the production-cut agreement has helped rid the market of excess crude supplies. Inventories of U.S. crude fell by 4.143 million barrels for the week ended June 8, well above expectations for a draw of 1.440 million barrels, according to data from the Energy Information Administration. Click Read More below for additional information.

Turpentine: A Surprising Journey from Forest to Flavors and Fragrances

What do toothpaste, perfume, soap and ink have in common? The surprising answer is turpentine. This versatile byproduct of the pulp- and paper-making process is used in a wide range of everyday products. Consider a typical day: You wake up and brush your teeth. Then you take a shower using your favorite soap. After you get dressed, you apply some makeup or a spritz of cologne or perfume. You might not have realized it, but before you left home this morning, you used a number of products that contain a special form of turpentine that Domtar makes. Your perfume’s floral fragrance and your toothpaste’s minty freshness originated as crude sulfate turpentine, a USDA-certified, all-natural and renewable byproduct of the pulp- and paper-making process. In fact, many of the scents and flavorings in products you encounter every day are derived from byproducts of the pulp- and paper-making process. Click Read More below for additional information.

Oil prices ease, but Saudi-Iran tensions keep a floor in market

Oil prices slipped Monday, giving back some of a steep climb from Friday seen after Saudi Crown Prince Mohammed bin Salman said the kingdom would develop nuclear weapons if arch-rival Iran did. Underpinning prices are tensions between Saudi Arabia and Iran, which are seen potentially disrupting global supplies. The Saudi crown prince visits the U.S. this week, which could provide plenty of headlines, as the Trump administration has called for a new look at the Iran nuclear pact. Trump told European leaders they must “fix the terrible flaws” in the deal or the U.S. would refuse to extend its sanctions relief on Iran. Click Read More below for additional information.
Back To Top
×Close search
Search