Oil prices advance 1% on expectations of OPEC led output cuts

Цена на нефть обновила минимум с октября 2017 года

The Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members will meet in Vienna, Austria on December 6 to discuss a new round of production cuts of 1 million to 1.4 million barrels per day (bpd) and possibly more, OPEC delegates told Reuters earlier this month. This indicates at a possible trench being created by the oil marketing companies to form a buffer in case the oil prices increase again.

Regional oil exporters are keen to end the intense price volatility that has characterised the market volatility which has seen the price of crude fall by about 30 percent since early October.

Implied volatility, a gauge of options demand, soared, with US crude implied volatility hitting its highest level since February 2016 last week.

"This is effectively an achievement of Saudi Arabia and the crown prince, he was the initiator of this work", Putin told an investment conference in Moscow on Wednesday.

Although today's early sell-off contributed to the largest one-month decline in crude oil since the financial crisis of 2008, the intraday technical reversal is the first sign in weeks that the buying may be greater-than-the-selling at current price levels. Producers are discussing a supply curb of 1 million to 1.4 million barrels per day (bpd) and possibly more. Wise stated that that would depend on the severity of cuts adopted by OPEC and its allies.

Global benchmark Brent crude fell by 5.5 % on Friday declining to the year's lowest point of $59 per barrel.

"The shutdown.is reducing supply of a North Sea crude that helps set global prices", said Sukrit Vijayakar, director of energy consultancy Trifecta, referring to Buzzards's role in the settlement of Brent futures.

Adding to the uncertainty in the oil markets were President Vladimir Putin's comments.

On Friday, Brent was nearly 1 percent down as it left levels of $61.58 per barrel. This is stark contrast to his statement two weeks ago, when Putin had said that Russian Federation would be okay with a $70 per barrel price. Gasoline futures prices dropped by 1.6% to trade at $1.3979 per gallon.

In other words, US crude inventories hit their highest level in a year after a tenth consecutive weekly increase, and are now only 80 million barrels below March 2017's record 535 million barrels, according to the Energy Information Administration. Analysts had predicted that inventories would go up by only 1 million barrels. The expectation had been that as maintenance in refineries began to wind down for the year, the market would see more draws.

Related News:



Most liked

Christmas Dinner Rocketed To International Space Station
If SpaceX rockets misbehave, that could prompt the agency to perform a safety review and delay those experimental launches. SpaceX hopes to take on that job soon, too. "...it just lands on the water.Then it sinks in and falls over".

Brie Larson kicks ass in new 'Captain Marvel' trailer
We did not expect this turn of events, but we enthusiastically accept the new reality where we all relate to Nick Fury. Which means that, before we get the Avengers 4 trailer, we've now got a new one for Captain Marvel .

President Trump pressuring OPEC to increase oil production ahead of crucial meeting
Iran is suffering both as a result of lower prices and a decline in its oil exports because of the U.S. sanctions. The oil market reacted negatively, dropping 52 cents to $61.56 a barrel in London.

Nuggets' Gary Harris exits vs. Raptors with hip injury
Beasley's running dunk after a Toronto miss nudged the lead back to 10 for the Nuggets, who led 86-78 after the third quarter. The Raptors shot a frightful 2-for-12 from three-point range in the first quarter, but still managed to keep it close.

'SNL' Star Pete Davidson Blocked Ariana Grande on Social Media After Breakup
After the heartbreak and hardships, Grande admitted that she can't even say "good morning" to anyone without crying. "I live fast and full-out, and I make mistakes, and I learn from them and I'm grateful no matter what happens".

Huawei Technologies CFO arrested in Canada, accused of violating Iran sanctions
Ian McLeod, spokesperson for Canada's Justice Department, said on Wednesday the arrest took place in Vancouver on December 1. The Wall Street Journal reported the U.S. government was trying to persuade companies in allied countries to avoid Huawei.

Petrol wars: Iran threatens to blockade Gulf oil exports over USA sanctions
Iran's president downplayed the economic impact of sanctions, accusing the media of exaggerating the country's problems.

Health department reminds residents to get flu shots
This method is not recommended for heart disease patients or anyone with an elevated risk and is not widely used today. In addition to getting a flu shot, IDPH recommends following the 3 C's: clean , cover , and contain .

David Attenborough: 'The collapse of our civilizations is on the horizon'
Guterres said governments should embrace the opportunities rather than cling to fossil fuels such as coal, a dig at hosts Poland. "I remind all Parties that this is a deadline you set for yourselves and it is vital you meet it", Guterres added.

United States urges Europe to impose sanctions on Iran over missiles
A 2015 United Nations resolution endorsing the Iran nuclear deal "calls on" Tehran not to engage in missile development, but it does not expressly forbid it.

Facebook's ranking drops in 'best places to work' list
A Facebook employee at the company's Menlo Park headquarters warned Glassdoor visitors not to believe all the negative press. To put into context, more than 830,000 employers are reviewed on Glassdoor and the average company rating is 3.4 out of 5.

World Bank doubles climate investment to $200bn
The World Bank's announcement came just before the opening of a United Nations (UN) climate conference in Katowice in Poland. The World Bank Group will spearhead a five-year, $200 billion investment to fight climate change .

Kelly Bryant Announces Transfer To Missouri
And just minutes later, Mizzou landed one of the top wide receiver transfers in the country in Arkansas' Jonathan Nance . Sophomore quarterback Cole Kelley announced he was leaving the Arkansas program on Monday.

Galaxy Note 9 One UI (Pie) beta has been released
The program is only available to unlocked Note 9 users - specifically, the SM-960U1 variant of the unlocked Note 9 in the US. Inside the app, there'll (hopefully) be a big notice that says they're invited to the Note 9 beta software program.

Michael Ignatieff-led university 'forced out' of Hungary
However, CEU will keep its Budapest campus and those students who have enrolled there will be able to complete their studies. Ignatieff told a news conference later that the CEU had received a "clear and unequivocal" welcome in Austria.