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Offbeat U.S. said to ask OPEC for 1 million barrel a day output hike

15:30  05 june  2018
15:30  05 june  2018 Source:   bloomberg.com

U.S. record oil exports bite into Russia, OPEC market share in Asia

  U.S. record oil exports bite into Russia, OPEC market share in Asia Record crude oil volumes exported from the United States will be heading to Asia in the next couple of months to take another piece of the market away from Russia and producers in the Organization of the Petroleum Exporting Countries.The United States is set to export 2.3 million barrels per day (bpd) in June, of which 1.3 million bpd will head to Asia, estimated a senior executive with a key U.S. oil exporters.

The U . S . government has quietly asked Saudi Arabia and some other OPEC producers to increase oil production by about 1 million barrels a day to pump more, it’s unusual for Washington to ask for a specific output hike , the same people said , asking not to be named discussing private conversations.

But analysts said OPEC was limited in influencing prices. But OPEC members normally ignore the official quota — the organization' s daily output is now estimated at nearly 32 million barrels . On Equal Pay Day , women are far from achieving pay equity.

Workers use machinery to move drill sections on the drilling floor of the oil derrick in the Salym Petroleum Development oil fields near the Bazhenov shale formation in Salym, Russia.© Andrey Rudakov/Bloomberg Workers use machinery to move drill sections on the drilling floor of the oil derrick in the Salym Petroleum Development oil fields near the Bazhenov shale formation in Salym, Russia. The U.S. government has quietly asked Saudi Arabia and some other OPEC producers to increase oil production by about 1 million barrels a day, according to people familiar with the matter.

The rare request came after U.S. retail gasoline prices surged to their highest in more than three years and President Donald Trump publicly complained about OPEC policy and rising oil prices on Twitter. It also follows Washington’s decision to reimpose sanctions on Iran’s crude exports that had previously displaced about 1 million barrels a day, or just over 1 percent of global production.

Oil heads for another weekly loss as output surges

  Oil heads for another weekly loss as output surges Oil in New York headed for a second weekly loss as U.S. output surged, pushing the American marker to near its weakest level in more than three years against global benchmark Brent. West Texas Intermediate futures are down 2.1 percent this week as pipeline bottlenecks in the Permian Basin add to pressure from unprecedented levels of U.S. production. Brent crude is 0.9 percent higher this week, even as investors await news on whether OPEC and its allies will agree to boost production. The dollar strengthened after U.S. jobs data beat expectations, which also weighed on oil prices.Hedge funds invested in U.S.

After that decision, other OPEC countries took on the reduction that was meant for Indonesia, al-Sada said . Saudi Arabia shouldered the bulk of the cut, about 486,000 barrels a day from its output of 10.56 million barrels a day .

Home » Browse » Newspapers » U . S . Newspapers » THE JOURNAL RECORD » Article details, " OPEC to Hike Output 1 Million Barrels Daily". The accord, signed by all 13 members of OPEC in the sixth day of sometimes-tense bargaining, lifts its official production ceiling to 19.5 million barrels

a close up of a black background: Oil Politics© Bloomberg Oil Politics

While U.S. lawmakers have habitually criticized the Organization of Petroleum Exporting Countries at times of high oil prices, and the government has on occasion encouraged the cartel to pump more, it’s unusual for Washington to ask for a specific output hike, the same people said, asking not to be named discussing private conversations. It’s not clear precisely how the request was communicated.

The American request was debated at a meeting of some Arab oil ministers over the weekend in Kuwait City, the people said. A statement published after the talks pledged to “ensure stable oil supplies are made available in a timely manner to meet growing demand and offset declines in some parts of the world.” Saudi Arabia and Russia last month proposed a gradual production increase, although other members of the group have yet to agree.

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OPEC needs to just grit their teeth and wait for world oil demand to soak up the oversupply," said Andrew Lipow, president of Lipow Oil Associates. OPEC , Russia and other producers extended their agreement just last week to curb output by 1 .8 million barrels a day for another nine months

OPEC oil producers, concerned over Russia' s curb promises, will "most likely" announce a 1 .5 million barrel -per- day output cut when they hold an emergency meeting in Cairo on Friday, a source said last week.

Benchmark Brent oil futures dropped as much as 1.5 percent to $74.16 a barrel in London trading after the U.S. request was reported.

"Looks like OPEC is at it again," Trump wrote in mid-April in a post on Twitter. "Oil prices are artificially Very High! No good and will not be accepted!"

The White House declined to comment on specific conversations, but a spokesperson for the U.S. National Security Council said access to affordable and reliable energy underpins global economic growth and the nation’s security.

"We welcome any market-based action that increases energy access and fosters a healthy global economy," the spokesperson said.

U.S. Treasury Secretary Steven Mnuchin last month disclosed Washington had "various conversations with various parties about different parties that would be willing to increase oil supply to offset" the impact of U.S. sanctions on Iranian oil output.

Exclusive: Trump requested Saudi oil support before Iran nuclear decision, sources say

  Exclusive: Trump requested Saudi oil support before Iran nuclear decision, sources say A day before U.S. President Donald Trump withdrew from the Iran nuclear deal, one of his senior officials phoned Saudi Arabia.Riyadh, Tehran's arch rival, has long been a close Washington ally, but direct pressure on a member of Organization of the Petroleum Exporting Countries (OPEC) over oil policies is rare. Washington last pressed Saudi Arabia to increase output in 2012.

The U . S . output rivals Saudi Arabia, which has had production of 10.6 million barrels a day , but currently has cut back due to the OPEC deal with Russia and others to Source: EIA. "The U . S . could add upwards of 2 million barrels a day from where we are today by the end of 2019," said Yergin.

VIENNA (AP) — OPEC oil ministers reached quick agreement Friday on keeping output targets steady but deferred solutions on how to deal with surging U . S . shale The Paris-based International Energy Agency says U . S . shale oil production could top 9 million barrels a day by 2018, at the same time as

Although Mnuchin declined to provide specifics, only four countries among OPEC and its allies hold enough spare production capacity to offset that impact: Saudi Arabia, Russia, the United Arab Emirates and Kuwait.

OPEC and a group of non-OPEC countries including Russia, Mexico and Kazakhstan agreed in late 2016 to cut oil output by a combined 1.8 million barrels a day in an effort to boost oil prices. Brent crude, the global benchmark, has risen from less than $45 a barrel before the deal was signed to more than $80 a barrel last month.

Consumer Anxiety

The OPEC deal removed more crude than originally intended from the market because of the collapse of the Venezuelan energy industry. With oil inventories in developed countries back to their five-year average and fuel prices approaching painful levels for consumers, Saudi Arabia and Russia have started talking about boosting output again, prompting Brent to slide back toward $75.

OPEC and its allies will discuss their production policy for the second half of the year in meetings scheduled on June 22 and 23 in Vienna. Saudi Oil Minister Khalid Al-Falih last month said the kingdom shared the "anxiety" of consuming nations about high oil prices and added that OPEC and its allies were "likely" to boost output.

The most recent comments by Trump and the request for extra oil are among the most forceful U.S. intervention in OPEC affairs since Bill Richardson, the energy secretary during the second administration of Bill Clinton, phoned the Saudi minister in the middle of an OPEC meeting in 2000 asking for a production increase. The intervention enraged other members of the cartel, exacerbating a schism between Saudi Arabia and Iran.

(Updates with oil price.)

--With assistance from Javier Blas.

To contact the reporters on this story: Fiona MacDonald in Kuwait at fmacdonald4@bloomberg.net;Grant Smith in London at gsmith52@bloomberg.net;Jennifer Jacobs in Washington at jjacobs68@bloomberg.net

To contact the editors responsible for this story: James Herron at jherron9@bloomberg.net, ;Will Kennedy at wkennedy3@bloomberg.net, Amanda Jordan

©2018 Bloomberg L.P.

US stocks set to open lower as central banks tighten policy .
U.S. stock index futures pointed to a lower open Thursday morning as investors digested comments from the Federal Reserve. At around 4:06 a.m. ET, Dow futures slipped 27 points, indicating a negative open of 31.20 points. The Nasdaq and the S&P 500 futures also indicated a lower start to the session for their respective markets.The moves in pre-market trade came after the Federal Reserve announced a new rate hike and indicated that two other increases are possible until the end of the year. As a result, the Dow fell about 120 points as traders expect that the higher rates will bring higher costs for companies.

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