Subscribe to our free daily newsletters
  Oil and Gas News from OilGasDaily.Com  

Subscribe to our free daily newsletters

Iran sees support for an extended OPEC cut agreement
by Daniel J. Graeber
Washington (UPI) Nov 20, 2017

Iran's oil minister said Monday that most members of the Organization of Petroleum Exporting Countries back extensions to a production cut agreement.

On Friday, Phil Flynn, a senior market analyst for the PRICE Futures Group in Chicago, said the Saudi energy ministry had "all but guaranteed" a deal credited with putting a floor under crude oil prices at around $50 per barrel would be extended deep into next year.

On Monday, it was the Iranian energy minister's turn, though Bijan Zangeneh said a formal agreement would have to wait.

"The final decision on the future of the deal is expected to be made at the upcoming OPEC meeting," he was quoted by the official Islamic Republic News Agency as saying.

OPEC in January implemented an agreement to sideline about 2 percent of global oil demand in an effort to drain the surplus on the five-year average in global crude oil inventories. The arrangement was extended already early this year by three months to March 2018.

Doubts surfaced last week, however, when the Russian Energy Ministry suggested representatives there were satisfied with markets "in the current format."

Traders are watching economic trends, oil production in the United States and global crude oil inventory levels to gauge what happens next for oil prices. For balance, inventories for the major industrial economies of the Organization for Economic Cooperation and Development are down considerably from recent highs, but still 119 million barrels above 2010-14 average levels.

Iran is one of OPEC's largest producers and the minister's comments would normally send oil prices into rally mode, though the price for Brent crude oil, the global benchmark, was down sharply before the start of trading Monday in New York.

"I basically think that OPEC has been boiling the chicken on production cut extension news for so long that the soup cannot get any stronger," Ole Hanson, the head of commodity strategy at Saxo Bank, told UPI.

Hanson said traders instead are focused on the reduction in geopolitical risk from late in the third quarter and suggestions that Brent's flirtation with $65 per barrel may have overextended the market.

The price for Brent was closer to $62 per barrel early Monday.

Skirmishes in northern Iraq last month helped add a risk premium to the price of oil, though so far there are few indications that operations there are sidelined for the long term. Some support for oil prices came last week when the Keystone oil pipeline spilled 5,000 barrels of oil in the United States and shut down.

The downward trend for oil prices early Monday may be indicative of lackluster economic growth. Third quarter growth in real gross domestic product in the OECD slowed to 0.6 percent, down from 0.8 percent in the second quarter. Japan and the United States led the quarterly declines.

More Trans Mountain hearings scheduled in Canada
Washington (UPI) Nov 20, 2017
Detailed route hearings for plans to expand the Trans Mountain crude oil pipeline in Canada are scheduled in British Columbia in early 2018, a regulator said. The National Energy Board said it scheduled two hearings for February for segments of the Kinder Morgan project. So far, the NEB said it's received 22 statements in opposition to the segments in question following 20 hearings. ... read more

Related Links
All About Oil and Gas News at

Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Contributor
$5 Billed Once

credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly

paypal only

Comment using your Disqus, Facebook, Google or Twitter login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Coffee set to power London buses in green initiative

Desert solar to fuel centuries of air travel

Sandia speeds transformation of biofuel waste into wealth

To find new biofuel enzymes, it can take a microbial village

Recurrent Energy secures debt financing for 20 MW California solar project

Ionic 'solar cell' could provide on-demand water desalination

Pine and poplar wood improve sunlight-driven water purification

Learning from photosynthesis

End tax credits for wind energy, Tennessee Republican says

New York sets high bar for wind energy

Construction to begin on $160 million Industry Leading Hybrid Renewable Energy Project

A kite that might fly

Embattled Toshiba to boost capital by $5.3 bn share issuance

A fast reactor system to shorten the lifetime of long-lived fission products

France backtracks on nuclear power reduction target

AREVA NP introduces FORERUNNER robot to optimize steam generator inspections

World leaders plead for climate action at UN forum

Merkel, Macron to front diplomatic push at UN climate talks

Scientists warn of 'giant leap backward' at climate talks

Heat on 'climate chancellor' Merkel over coal and cars

Driverless, electric future just round the corner for urban cars

Volkswagen China to invest billions in new energy cars

Tesla unveils its all-electric semi truck

Horrific highway pile-up kills 18 in China

Tribal justice awaits returning Iraqis who joined IS

Iraq forces launch assault on last IS-held pocket

IS recaptures last Syrian urban bastion in fierce fightback

Millions mark key Shiite commemoration in Iraq holy city

North Korean soldier stable, but riddled with parasites

Singapore suspends trade ties with North Korea

Trump defends Asia trip, vows 'maximum pressure' on N.Korea

N. Korea defector in serious condition from gunshot wounds

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement