Oil and Gas News from OilGasDaily.Com  
OIL AND GAS
Crude lower on new China tensions, worries about OPEC meeting outcome
by Renzo Pipoli
Washington (UPI) Dec 6, 2018

Crude oil prices were lower Thursday morning, in part due to renewed trade tensions between the United States and China, while the market awaited results of an meeting of the Organization of the Petroleum Exporting Countries in Vienna, as well as new EIA data, an analyst said.

West Texas Intermediate front-month future prices fell 2.8 percent to $51.41 per barrel as of 8:25 a.m. EST, while Brent front-month prices dropped to $60.13, or 2.3 percent, as of the same time

"While OPEC is taking center stage today, the global macro front, with the inversion of the yield curve, along with the arrest of the Chinese executive, have all weighed on a risk-off attitude going into today," Tariq Zahir, managing member of investment-advisory firm Tyche Capital Advisors, told UPI.

The chief financial officer of China's Huawei Technologies CFO, Meng Wanzhou, is facing extradition from Canada, where she was arrested on Saturday at the request of the United States, according to Wednesday reports. The U.S. is seeking her extradition on suspicion she violated U.S. trade sanctions against Iran.

The arrest has caused concern that U.S. and China trade relations, already hurt by tariffs and counter tariffs announced and put into effect earlier this year, would worsen and lead to an economic slowdown that could curb oil demand.

Just this weekend some of that concern had dissipated after leaders of the United States and China had agreed Saturday to a 90-day truce, and to postpone additional tariffs that were supposed to go into effect January.

"While EIA numbers are coming out today the focus is on OPEC," Zahir added. "We feel if no deal is done we will easily see WTI trade in the mid $40's in the weeks to come. If we get a cut of close to 1 million barrels we should stabilize over the $50 level but we will be held hostage to the yield curve inversion we have started to see, and risk-off attitude."

OPEC members were set to meet Thursday in Vienna. Traders have anticipated for several weeks that the 14-member group -- after Qatar pulled out earlier this week -- will agree on a production cut in a bid to help prices increase.

There is uncertainty as to whether the group, where Saudi Arabia is the top producer, would have capacity to reach an accord and implement it.

In addition to OPEC, Saudi Arabia is likely to also have to reach an accord with Russia before it moves to lower output, or else it would risk making a cut that would benefit Russia. Saudi Arabia and Russia are two of the world's three biggest producers.

The United States became the world's biggest crude oil producer earlier this year.

At 10:30 a.m. EST the Energy Information Administration will release data on U.S. inventories, with indication of production and trade. The data is also expected to influence the market.

Earlier this week there was a report by the API that suggested a crude inventory build-up would be officially announced Thursday, traders said earlier this week.


Related Links
All About Oil and Gas News at OilGasDaily.com


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


OIL AND GAS
Australia's Melbana agrees with Cuba on plan to expand island's offshore production
Washington DC (UPI) Dec 05, 2018
Australia's Melbana oil exploration company, which has rights in a Cuban area known as block 9, will now also work to enhance production from the separate Santa Cruz offshore field, which has been producing oil for over a decade. "Melbana has completed its initial assessment, yielding a number of promising opportunities to enhance production" from the Santa Cruz offshore field just off the islands northeastern coast, about 28 miles away from Havana, the company said on Wednesday. The San ... read more

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



Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

OIL AND GAS
Team converts wet biological waste to diesel-compatible fuel

Algae testbed experiment yields data useful for future projects

Researchers advance biomass transformation process

Paving the way for more efficient hydrogen cars

OIL AND GAS
Seeing the light: Researchers offer solution for efficiency problem of artificial photosynthesis

Microscopic 'sunflowers' for better solar panels

Aluminum nitride to extend life of solar power plants

Brilliant iron molecule could provide cheaper solar energy

OIL AND GAS
Coordinated development could help wind farms be better neighbors

Roadmap to accelerate offshore wind industry in the United States

Denmark-based Orsted adds to its U.S. wind energy assets

Making wind farms more efficient

OIL AND GAS
Framatome signs MoU with Bruce Power for safety-related Life-Extension Program updates

Bulgaria leader opposed to increased carbon-cutting targets

France to close 14 nuclear reactors by 2035: Macron

Hard choices as Macron charts France's energy future

OIL AND GAS
At-risk nations plead for 'justice' at UN climate summit

Fossil algae reveal 500 million years of climate change

Climate from space art competition

World Bank promises $200 bn in 2021-25 climate cash

OIL AND GAS
Madrid orders removal of electric scooters

Volkswagen says next generation of combustion engine cars to be its last

Luxury 'Red Flag' models buck China auto sales slump

China agrees to 'reduce and remove' tariffs on US cars: Trump

OIL AND GAS
With the jihadists gone, booze is back in Iraq's Mosul

Yazidi women want to join court case against French cement giant

Bitter Iraqis remember George H.W. Bush as 'Mr Embargo'

Iraq sentences former minister in absentia on graft charges

OIL AND GAS
Trump wants talks with Putin, Xi to end 'uncontrollable arms race'

US gives Russia 60 days to comply with nuclear treaty

Trump to grant Kim Jong Un's wishes after denuclearisation: S. Korea president

Trump says hopes to meet N.Korea's Kim in January or February









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - 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. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.