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

Subscribe to our free daily newsletters

OPEC expectations lift oil prices higher
by Daniel J. Graeber
Washington (UPI) Nov 30, 2017

Expectations that OPEC will opt for a nine-month extension to a production cut agreement pushed oil prices higher, but gains were limited by nuance.

Parties to an agreement led by the Organization of Petroleum Exporting Countries to drain a surplus on the five-year average for global crude oil inventories continued to discuss the fate of the deal during closed-door meetings in Vienna early morning New York time. Expectations of a nine-month extension beyond the March expiration date have already been priced into the market by most accounts.

Speaking ahead of a decision on the terms of that extension, OPEC President and Saudi Energy Minister Khalid al-Falih said the surplus for global inventories was about 14 million barrels above the five-year average, a decline of almost 50 percent from May.

"I'm delighted to note that as a result of our joint efforts, the goals laid down in the Declaration of Cooperation [last year] are on track to be achieved," he said in his opening remarks.

Crude oil prices moved higher through most of the overnight trading, bouncing around 1 percent gains for most of the morning. The price for Brent crude oil, the global benchmark for the price of oil, was up 1.1 percent to $63.21 per barrel as of 9:10 a.m. EST. West Texas Intermediate, the U.S. benchmark for the price of oil, was up 0.8 percent to $57.75 per barrel.

The deal, which counts on the contribution from non-OPEC members like Russia, was coordinated in November 2016, implemented in January and extended this year to March. Russia's position is important given it's reliance on oil and gas for revenue. Finance officials said oil and gas revenues were higher, though Prime Minister Dmitry Medvedev said that there's still work to do for the nation's economy given the high rate of poverty.

Elsewhere in his remarks, the Saudi minister noted that the parties to the agreement are only halfway to their goal. Demand into 2018 looks strong, he said, but noted that the closer the participants get to the goal, the more commitments can waiver.

Joe McMonigle, a senior energy analyst at Hedgeye Risk Management who attended the meeting in Vienna, told UPI the fine print of Thursday's decision matters in how a possible June review is handled. Meanwhile, he said Iraq's oil minister suggested that $65 per barrel might be too high given the likely counterbalance that would result from a surge in U.S. shale production.

Cailin Birch, a commodities Analyst at the Economist Intelligence Unit, said in commentary emailed to UPI that some parties may be looking for an exit door in an effort to preserve their market share.

"OPEC will almost be forced to extend the cuts until end-2018, as the markets have largely priced this in," Birch said. "If OPEC were to make a statement today with a vague commitment to the extension, or a shorter duration, this would likely cause a sell-off that would send prices back down below $60 per barrel."

Elsewhere, after reporting a higher rate of growth in gross domestic product than previous forecasts, the U.S. Commerce Department said personal income increased 0.4 percent in October, while spending accelerated by 0.3 percent.

For non-durable goods, the cost of prescription drugs was among the leading contributors to spending and comes as Republican leaders continue to work to dismantle the Affordable Care Act, former President Barack Obama's signature healthcare reform. For services, spending rose for passenger fares, travel and communication services.

Oil producers agree extension of output curbs: Iraq
Vienna (AFP) Nov 30, 2017
Oil producer nations agreed Thursday to keep production curbs in place for another nine months until the end of 2018, Iraq's oil minister said after talks in Vienna. The extension by 24 nations "is nine months" from March 31 until the end of 2018, Jabbar al-Luaibi told reporters after talks in Vienna. The producers were expected to confirm the agreement at a news conference shortly. ... 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

Cleaning Okinawan pig farm wastewater with microbial fuel cells

Brazilian ethanol can replace 13 percent of global crude oil consumption

The water world of ancient photosynthetic organisms

Surrey develops new 'supercatalyst' to recycle carbon dioxide and methane

Burkina, France launch W.Africa's biggest solar plant

Improving solar cells by watching atoms move in hybrid perovskite crystals

Artificial photosynthesis gets big boost from new catalyst

Glass microparticles enhance solar cells efficiency

U.S. wind turbines getting taller and more efficient

New wind farm in service off the British coast

End tax credits for wind energy, Tennessee Republican says

New York sets high bar for wind energy

For Gabon's sickly uranium miners, a long quest for compensation

Belarus nuclear power plant stirs fears in Lithuania

Lightbridge and AREVA NP Sign Agreements to Immediately Advance Fuel Development

UK made grave errors over Hinkley nuclear project: MPs

Canada to explore trade, climate change fight, with China

Moroccans pray for rain as 'mercy from God'

Spain, Portugal struggle with extreme drought

Climate change encouraged 19th century migration to America

Norway puts brakes on plans for 'Tesla tax'

SoftBank offer for Uber shares to cut valuation: reports

Traffic-weary Chinese man fined for repainting road lines

Driverless, electric future just round the corner for urban cars

Baghdad cafe marks 100 years as intellectual hub

Suicide bombers kill 11 in Iraq attack claimed by IS

Iraq to resume paying war reparations to Kuwait

Iraq attacks at lowest since IS 'caliphate' declared: study

Greenpeace sounds alarm on nuclear safety with new break-in

UN Security Council faces calls for more N.Korea sanctions

DPRK Missile Launch: Frequency over Amplitude

N. Korea tests ICBM in fresh challenge to Trump

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