Economy

Oil producers' talk of longer cuts spurs optimism

Oil producers' talk of longer cuts spurs optimism

Futures climbed for a fifth day in NY, extending a 2.1 per cent jump Monday after the Saudi and Russian energy ministers said they favour extending curbs until the end of March.

Oil rode its longest rising streak in more than a month as a proposal by the world's two biggest crude producers to extend output curbs into 2018 boosted confidence that other nations will follow suit.

Reuters picSINGAPORE, May 16 ― Oil prices rose today, extending gains after a joint announcement by top producers Saudi Arabia and Russian Federation to push for an extension of supply cuts until the end of March 2018 gained traction.

Saudi Arabia and Russian Federation said on Monday that they agreed to the need for a 1.8 million barrels per day (bpd) crude supply cut to be extended for nine months, until the end of March 2018.

Global benchmark Brent increased by as much as 3.3 per cent to US$52.52 a barrel on ICE Futures Europe and West Texas Intermediate climbed by up to 3.4 per cent, to $49.45 a barrel on the New York Mercantile Exchange.

At the end of November, the Organization of Petroleum Exporting Countries (OPEC) agreed to cut output by 1.2 million barrels per day (mb/d) from January 1, initially for a period of six months.

Opec countries and countries outside the cartel participating in the deal on reducing oil production have reached a full consensus on extending the deal, Al-Falih said.

The following month, 11 non-OPEC oil-producing countries pledged to cut another 558,000 barrels a day, bringing the overall reduction to 1.8 million barrels a day.

The overall outlook for the non-OPEC countries, eleven of which were voluntarily cutting production to support OPEC, pointed to faster growth than previously anticipated in 2017, the IEA said.

A jump in US exports to Asia, the world's biggest and fastest growing market and the last region in which OPEC supplies dominate, is a particular worry for the producer club. This fluctuation had resulted in the rise of 2.5 percent in the stock price of the crude oil in the commodity market.

The US has also refused to cut production and its own output has increased by about 10% since past year.

"The ministry stressed that the agreement on oil output cuts had a positive impact on oil prices, adding that additional steps to ensure market stability in the long term were still needed as global commercial oil reserves were above their five-year average".

The feature in the marketplace early this week is a continuation of the recent rally in the crude oil market.

In its monthly oil market report, the Paris-based group noted Libya has raised oil production to 800,000 barrels a day, the highest point in three years, according to its preliminary data.


  • Discover Financial Services (NYSE:DFS) Q4 2016 Sentiment Report

    Cable Hill Partners LLC boosted its position in shares of Discover Financial Services by 112.1% in the third quarter. The business had revenue of $2.34 billion for the quarter, compared to the consensus estimate of $2.36 billion.

    Rating Roundup: Coca-Cola Company (NYSE:KO)

    This change led market cap to move at $13.39B, putting the price -23.17% below the 52-week high and 12.42% above the 52-week low. The company reported $0.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.44 by $0.01.

    Former National Security Adviser Has Not Responded To Subpoena

    That's according to the panel's chairman, Republican Sen. "But we'll figure out on General Flynn what the next step-if any-is". That process could take years due to procedure, Politico reports.
  • Derek Jeter, a dream fulfilled

    Carlos Beltran added an RBI double and Carlos Correa lifted a sacrifice fly as Houston improved to 11-3 in its last 14 games. One thing the Yankees know how to do is ceremonies. “Theres rumors out there that Buck suggested I be No. 2, ” Jeter said.

    Bobby Moynihan to Exit 'Saturday Night Live' After 9 Seasons

    But all gigs eventually come to an end and as many SNL cast members do eventually, Moynihan has made a decision to leave the show. Moynihan's exit should not come as a shock to those who followed the news coming out of broadcast Upfronts.

    Tom Hardy cast as Venom in Sony's Spider-Man film

    Scott Rosenberg and Jeff Pinkner will pen the script for the film, while Avi Arad , Matt Tolmach and Amy Pascal will produce. Until then, DC Fans have "Wonder Woman" releasing on June 2, 2017, and "Spider-Man: Homecoming" releasing on July 7, 2017.
  • Korea, US, Japan assure unity against N. Korea's provocation

    Analysts said the UN Security Council would likely discuss new sanctions, with China possibly playing a role in their formation. The missile travelled some 700km (435 miles), reaching an altitude of 2,000km and landing in the sea west of Japan.

    Fiat Chrysler seeks diesel emission certification from EPA

    Fiat Chrysler, keen to put to rest any allegations of diesel-emissions cheating, will be updating diesel vehicles old and new. Regulators have said that in normal driving they emitted up to 40 times more smog-causing nitrogen oxide than the legal limit.

    Syria says US airstrike killed several soldiers near Jordan

    A road between Iraq and Syria would facilitate the flow of assistance from Iran , which is a strong backer of Assad. A 34-mile defensive zone exists around the base, and it is believed these forces strayed inside that.
  • Julian Assange probe dropped by Swedish prosecutors

    The Wikileaks founder took to his Twitter account to post a celebratory photo . Attorney General Jeff Sessions saying that arresting Assange is a priority .

    Everything We Know About Young Sheldon So Far

    We also get to see his father George Cooper (Lance Barber ), as well as his siblings played by Raegan Revord and Montana Jordan . Sheldon stopped saying this catchphrase on The Big Bang Theory years ago, but maybe it'll come back for a full circle moment.

    Full tanks and tankers: a stubborn oil glut despite OPEC cuts

    West Texas Intermediate for June delivery rose 8 cents to $49.15/bbl at 10:58 a.m. on the New York Mercantile Exchange. Data released on Thursday shows that even Saudi Arabia has increased sales in the market by 275,000 barrels a day.