En Español



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 


Brent oil holds below $50 as Russia oppose deeper OPEC cuts


Russia to oppose any proposal to cut output further: officials. U.S. crude stockpiles forecast to resume declines: survey

HONG KONG
Petroleumworld 07 05 2017

Brent crude traded below $50 a barrel after ending the longest run of gains since 2012 as Russia was said to oppose any proposal to deepen OPEC-led production cuts.

Futures were little changed in London after losing 7 cents on Tuesday, snapping an 11 percent increase over eight sessions. Russia wants to continue with the current deal and any further supply curbs would send the wrong message to the market, according to government officials. U.S. crude stockpiles probably resumed declines last week, a Bloomberg survey showed before an Energy Information Administration report Thursday.



Sources: Bloomberg, OPEC secondary-source estimates, IEA preliminary estimates. Includes revised data

While prices have surged during the past week, oil remains in a bear market after concerns that rising global supply will offset output cuts from the Organization of Petroleum Exporting Countries and its partners.  Libya and Nigeria , exempt from the OPEC-led curbs, accounted for half of the group's production boost last month, according to data compiled by Bloomberg.

“The environment at the moment isn't conducive for prices to extend the rally,” said Daniel Hynes, a Sydney-based analyst at Australia & New Zealand Banking Group Ltd. “Supply dynamics are against the market. It'll probably be a bit of a wait-and-see period to evaluate the impact of sub-$50 oil.”

Brent for September settlement was at $49.62 a barrel on the London-based ICE Futures Europe exchange, up 1 cent, at 7:45 a.m. in London. The contract fell 0.1 percent to $49.61 on Tuesday, the first decline in nine sessions. Prices dropped 9.3 percent in the previous quarter.

West Texas Intermediate for August delivery was down 2 cents to $47.05 a barrel on the New York Mercantile Exchange. Transactions on Tuesday will be booked Wednesday for settlement purposes because of the U.S. Independence Day holiday. Prices gained almost 11 percent in the eight days through Monday.

Deepening cuts would suggest that OPEC, Russia and their allies are nervous that the pact to reduce output by a combined 1.8 million barrels a day through March 2018 isn't doing enough to support prices, an official said.



Story by Ben Sharples from Bloomberg.

bloomberg
.com
07 05 2017

We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels


 

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.