Thursday, 18 October, 2018

Oil rises above $80 as OPEC stops short of pledging more output

Iran We won’t let OPEC boost production Ahmad Halabisaz Global Look Press
Elsie Buchanan | 26 September, 2018, 19:49

Oil prices hit a four-year high of $81.48 a barrel on Tuesday after Saudi Arabia and Russian Federation appeared to reject calls from the U.S. to increase production amid looming sanctions against Iranian oil.

After pulling out of the 2015 Iran nuclear deal in May this year, the Trump administration has pledged to impose an embargo on Iranian oil from November 5.

"While investments picked up slightly in 2017 compared to the previous two years, and the expectations are for higher levels again in 2018, it is vital that as an industry we ensure there is timely and adequate investment so as not to lead to a supply shortage in the future", OPEC Secretary-General Mohammad Barkindo said.

The committee formed by OPEC and non-OPEC oil producers "was directed to study the 2019 outlook and present options on 2019 production levels to prevent market imbalance", the closing statement in Algiers added.

The US President said in a tweet last week that Opec "must get prices down now!" by raising global output.

But Saudi Arabia's energy minister Khalid al-Falih left the way open to a future production hike, as supplies tighten due to the USA imposing sanctions on Iranian oil from November this year.

There were mounting concerns about the exhaustion of OPEC's spare capacity and the organisation's ability to add more medium-sweet barrels to meet demand from refiners.

"Iran will lose sizeable export volumes, and given OPEC+ reluctance to raise output, the market is ill-equipped to fill the supply gap", Harry Tchilinguirian, global head of commodity markets strategy at French bank BNP Paribas, told the Reuters Global Oil Forum.

Iran top aide dismisses U.S. meeting offer as 'Trump's dream'
Rouhani earlier said that as a precondition for any dialogue, Trump would need to fix the damage done by exiting the nuclear deal. Iranian President Hassan Rouhani delivers a speech during the annual military parade marking in Tehran, Iran September 22, 2018.


Brent, the global benchmark, was up 2.5% to $80.17 a barrel on London's Intercontinental Exchange.

American tight oil production will rise to 16 MMbpd by the late 2020s, the report said, making up nearly 25% of total non-OPEC supply by then.

Saudi Arabia says it has enough spare capacity to increase production by another 1.5 million barrels per day but some market participants are sceptical about the amount and the quality. In August, OPEC and its allies cut production by 600,000 bpd more than their pact required, mainly as a result of falling output in Iran as customers in Europe and Asia reduced purchases ahead of the US sanctions deadline.

Oman's oil minister Mohammed bin Hamad Al-Rumhy told reporters on Saturday that OPEC and non-OPEC producers overachieved on pledged output cuts by 600,000 bpd in August, putting the reduction at around 2.4 million bpd.

"We protect the countries of the West Asia, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices!"

Early last week, the market was supported by a report which said Saudi Arabia would be comfortable with Brent prices over $80 a barrel.

The official further said the United States could tap into its own strategic reserves to compensate for the missing Iranian oil volumes.

Recommended

Derby County boss Frank Lampard 'shell-shocked' by win over Manchester United Derby County boss Frank Lampard 'shell-shocked' by win over Manchester United The Pogba row overshadowed a superb achievement by Lampard, who only took his first managerial role at Derby in the close-season. The France midfielder was rested for the clash and watched on from the stands.

Julie Swetnick comes forward as Michael Avenatti's client accusing Kavanaugh Julie Swetnick comes forward as Michael Avenatti's client accusing Kavanaugh The New Yorker quotes an ex-girlfiend of Judge's who said he told her a story that mirrors the allegations Avenatti is making. Mint and the State Department, and had held security clearances, she said.

Michael Kors Just Bought Versace & We Need to Sit Down Michael Kors Just Bought Versace & We Need to Sit Down Bloomberg via Getty Images A man carries a Gianni Versace SpA branded shopping bag at a store in Milan on September 24, 2018. That part of the market is on an upswing, with US$289 billion in global sales a year ago , according to Bain & Company.

Tiger Woods wins first championship in 5 years Tiger Woods wins first championship in 5 years Woods's 12-under-par aggregate sees Justin Rose and a resurgent Rory McIlroy as his closest challengers. Woods now trails Sam Snead , who won 82 times, for the most victories in PGA Tour history.

Boulder woman seeking FBI investigation on Brett Kavanaguh accusations Boulder woman seeking FBI investigation on Brett Kavanaguh accusations The report says the student was told by Yale professor Jed Rubenfeld that Judge Kavanaugh "hires women with a certain look". Dean Heather Gerken called him a "long-time friend" and a "mentor" to students.

Trump's boast draws laughter during his United Nations General Assembly speech Trump's boast draws laughter during his United Nations General Assembly speech Some in the audience also grumbled during Trump's remarks when he said "we reject the ideology" of globalism. Trump had called Kim a " rocket man " bent on nuclear destruction in his United Nations speech past year .

Will Smith Bungee Jumps Out Of Helicopter For 50th Birthday Will Smith Bungee Jumps Out Of Helicopter For 50th Birthday The daring actor arrived more than hour beforehand with wife Jada Pinkett Smith and his three children Trey, Jaden and Willow. It seems leaping out of a helicopter from an absurd height is one way to knock that fear out of you.

SC verdict Aadhar is not mandatory for bank account mobile connection SC verdict Aadhar is not mandatory for bank account mobile connection Congress leader Kapil Sibal, at a press conference, told reporters that the Aadhaar Act was against democracy. Bank Accounts: The SC in its judgment on Wednesday said, "Bank account need not be linked with Aadhaar".

Novak Djokovic drills ball at Roger Federer in Laver Cup doubles Novak Djokovic drills ball at Roger Federer in Laver Cup doubles The Europe captain has sent Federer out for the opening two matches on the final day in Chicago. "Saved match points. Sock, Nick Kyrgios, John Isner , Tiafoe, Anderson and Schwartzman are representing Team World.

Jose Mourinho 'at war with his players', says Martin Keown Jose Mourinho 'at war with his players', says Martin Keown He has been at Old Trafford for three seasons and this has been a problem throughout his time in charge. Asked what is stopping United attacking more, Pogba said: "I can't tell you because I'm a player".

Chelsea And West Ham Touted To Make A Deal In January Chelsea And West Ham Touted To Make A Deal In January The Belgian netted a hat-trick last time out for Chelsea in the 4-1 win against Cardiff. "Your career's short enough as it is". Speaking to the Daily Mail , Azpilicueta said: "I prefer to defend as far as possible up the pitch".

Hayabusa2 successfully deployed two rovers on asteroid Ryugu on Saturday Hayabusa2 successfully deployed two rovers on asteroid Ryugu on Saturday The Hayabusa2 team confirmed the rovers' deployment and established communication with them shortly thereafter. The data was given by Japanese space office JAXA , who likewise shared pictures caught by the tests.

Strawberries pulled from shelves in New Zealand after needles found within Strawberries pulled from shelves in New Zealand after needles found within Leading New Zealand supermarket brand Countdown is advising customers to cut up strawberries before eating them. Countdown said the brand had been pulled off its shelves and had not previously been flagged as a concern.

Instagram co-founders stepping down from Facebook Instagram co-founders stepping down from Facebook The co-founders of Instagram said Monday they had stepped down from Facebook, which acquired the photo-sharing app in 2012. "We're planning on taking some time off to explore our curiosity and creativity again", Systrom wrote in a blog post .

TV Ratings Are Out For Tiger Woods’ Final Round On Sunday TV Ratings Are Out For Tiger Woods’ Final Round On Sunday A two-stroke triumph at the Tour Championship capped a comeback season that seemingly could not have gone better for Woods. That means that 5.2% of households in these 56 markets tuned into Woods' win, his 80th overall, on Sunday.