by Daniel J. Graeber
Washington (UPI) Oct 10, 2017
Crude oil prices recovered from their October slump to jump higher in early Tuesday trading after OPEC's secretary general said markets were balancing.
"The oil supply and demand variables are fast returning to balance after a record three years of unprecedented downturn, as evidenced by the continuously positive fundamentals, due largely to the full and timely implementation of supply adjustments by OPEC and non-OPEC countries," OPEC Secretary General Mohammad Sanusi Barkindo said from New Delhi.
The Organization of Petroleum Exporting Countries and a handful of non-member state producers started cutting crude oil production in January in an effort to draw the five-year average for global crude oil inventories back to even after years of chronic oversupply.
Barkindo said global levels were 338 million barrels above the five-year average at the start of the year and that was cut by almost half by the end of August. Demand, meanwhile, should accelerate.
The price for Brent crude oil was up 1.17 percent to $56.44 per barrel as of 9:17 a.m. EDT. West Texas Intermediate, the U.S. benchmark for the price of oil, was up 1.5 percent to $50.34 per barrel, regaining a hold above the psychological level of $50 per barrel after losing grip on that level last week.
The rally was supported by an upward revision in global economic growth from the International Monetary Fund. The IMF said the trend line for growth in general was strengthening, in part because of gains in Asia and a recovering Europe.
Elsewhere, however, the prospects were cautionary at best, with the IMF warning the trajectory might not be sustainable. Nominal wage growth in most advanced economies is worse now than what it was at the height of the 2008-09 recession and the IMF said it downgraded its forecast for the United Kingdom, which is charting its course out of the European Union, and for the United States, which is struggling for legislative victories under U.S. President Donald Trump.
"While the baseline outlook is strengthening, growth remains weak in many countries, and inflation is below target in most advanced economies," the IMF's report read.
For OPEC, the secretary general said that, while the market was balancing, it was a global market that required an all-hands-on-deck approach for sustained leveling.
"We urge our friends in the shale basins of North America to take this shared responsibility with all the seriousness it deserves, as one of the key lessons learnt from the current, unique supply-driven cycle," he said.
Washington (UPI) Oct 9, 2017
Liquefied natural gas could help satisfy growing energy demands in India, especially if commodity prices continue to improve, Wood Mackenzie found. In its October forecast, the Reserve Bank of India predicted inflation would hold steady at 4.5 percent through 2019 and real gross value added growth, the grand total of all revenues, should increase from 6.7 percent through 2018 to 7.4 per ... read more
All About Oil and Gas News at OilGasDaily.com
|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|