Offbeat: OPEC agrees on larger-than-expected cut after marathon talks - PressFrom - US

OffbeatOPEC agrees on larger-than-expected cut after marathon talks

18:20  07 december  2018
18:20  07 december  2018 Source:

Exclusive: Russia accepts need for oil cuts, bargains with Saudi on details - sources

Exclusive: Russia accepts need for oil cuts, bargains with Saudi on details - sources Russia is becoming increasingly convinced it needs to reduce oil output in tandem with OPEC but is still bargaining with the producer group's leader, Saudi Arabia, over the timing and volume of any reduction, two industry sources told Reuters. The Russian Energy Ministry held a meeting with the heads of domestic oil producers on Tuesday, ahead of a gathering in Vienna of the Organization of the Petroleum Exporting Countries and its allies on Dec. 6-7. "The idea at the meeting was that Russia needs to reduce.

OPEC finalized an agreement for a larger - than - expected production cut in conjunction with its allies, sending oil prices soaring after several days of difficult talks in Vienna. The cartel concluded its meeting with an accord to remove 1.2 million barrels a day of crude from the market, with non- OPEC

OPEC and non- OPEC producers led by Russia agreed on Thursday to extend oil output cuts until the end of 2018 as they try to finish clearing a global Russia needs much lower oil prices to balance its budget than OPEC ’s leader Saudi Arabia, which is preparing a stock market listing for national energy

OPEC finally broke an impasse over production curbs, agreeing on a larger-than-expected cut with allies after two days of fractious negotiations in Vienna.

The cartel and its partners agreed to remove 1.2 million barrels a day from the market, with OPEC itself shouldering 800,000 barrels of the burden. Iran emerged as a winner from the contentious talks, saying it’s secured an exemption from cuts as it suffers the effects of U.S. sanctions.

Crude surged as much as 5.8 percent in London, raising the risk that the deal could anger U.S. President Donald Trump, who had urged the group to keep the taps open and prices low.

Qatar to withdraw from OPEC as of January 2019 - minister

Qatar to withdraw from OPEC as of January 2019 - minister Qatar to withdraw from OPEC as of January 2019 - minister

Opec has agreed to extend its production cuts into next year, as the oil cartel and its allies step up their attempt to Opec ’s efforts to eliminate excess supply since the cuts came into force at the start of the year “I expect a healthy return of US shale but not to the degree that it will derail what we are doing

As OPEC oil ministers prepare for a meeting in Vienna next month, a draft paper leaked to the Wall Street More such deals are likely. Paul Stevens of Chatham House, a think-tank in London, expects a Unless some large -scale conflict erupts that takes out some of the world’s biggest oilfields, the oil

The breakthrough at the Organization of Petroleum Exporting Countries’ secretariat followed a series of bilateral meetings convened by non-OPEC member Russia, which emerged as the key broker between arch rivals Saudi Arabia and Iran. OPEC has been under increasing pressure from forces re-drawing the global oil map, leaving it ever more dependent on Russia’s support while also subject to vehement opposition from Trump.

The final deal is a surprise, since discussions had earlier centered on a proposed output reduction from OPEC and its allies of about 1 million barrels a day, with OPEC cutting 650,000 barrels of the total, according to delegates.

Rudder for Market

“Given how much expectations were down played around the outcome of this meeting, this result comes as a welcome surprise,” said Harry Tchilinguirian, head of commodity-markets strategy at BNP Paribas. “OPEC has given the oil market a rudder that appeared largely absent yesterday.”

Qatar quitting OPEC means the oil cartel is now just a 'two-member organization'

Qatar quitting OPEC means the oil cartel is now just a 'two-member organization' The future of OPEC is on shaky ground, an analyst has told CNBC, after Qatar abruptly announced it would sever ties with the influential oil cartel after almost six decades. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); Qatar's Energy Minister Saad al-Kaabi said at a news conference Monday that Doha would leave OPEC on January 1, 2019. The decision comes just days before OPEC and its allies are scheduled to hold a much-anticipated meeting in Vienna, Austria.

28 -- OPEC agreed to cut production for the first time in eight years, sending oil prices more than 6 percent higher, as Saudi Arabia and Iran wrong-footed traders who expected a continuation of the pump-at-will policy the group adopted in 2014, according to a delegate briefed on the matter.

For countries that export petroleum at relatively low volume, their limited negotiating power as OPEC members would not necessarily justify the burdens imposed by OPEC production quotas and membership costs. " OPEC agrees on need for output cut ".

Producers will use October output levels as a baseline for cuts and the agreement will be reviewed in April. Russia has proposed a contribution equivalent to a 2 percent reduction from that month, according to one delegate, who said figures are still under discussion. Such a cut would equate to 228,000 barrels a day, Bloomberg calculations show, higher than its initial pitch for no more than 150,000 barrels a day.

OPEC agrees on larger-than-expected cut after marathon talks© Bloomberg OPEC Curbs

“I’m confident that our resolve, that our professionalism and our willingness to achieve results is as strong as ever,” Russian Energy Minister Alexander Novak said of the so-called OPEC+ coalition. “In current conditions it’s extremely important to send a strong signal to the market.”

Much has changed for OPEC since 2016, when Russia and Saudi Arabia ended their historic animosity and started to manage the market together. The alliance has transformed the cartel into a duopoly in which the Kremlin is asserting its power.

Qatar to Exit OPEC

Qatar to Exit OPEC The gas-rich nation of Qatar on Monday said it is withdrawing from OPEC at the start of next year. The head of the country's energy ministry said it plans to focus its energy investments on further developing its natural gas resources. "Achieving our ambitious growth strategy will undoubtedly require focused efforts, commitment and dedication to maintain and strengthen Qatar's position as the leading natural gas producer," Saad Sherida al-Kaabi said at a press conference in Doha, according toexcerpts shared on Twitter by the state oil and gas company, Qatar Petroleum.

Non- OPEC countries agreed to cut oil production by 558,000 barrels per day (b/d) during a meeting with members of the Organization of Petroleum "This agreement cements and prepares us for long-term cooperation," Saudi Energy Minister Khalid al-Falih told reporters after the meeting, calling the

After more than four hours of talks in Algeria on Wednesday Opec committed itself to reducing output to between 32.5m barrels a day and 33m b/d, according to ministers. The agreement surprised oil traders who thought a consensus would be difficult to reach because of divisions between Saudi

“OPEC, or more precisely Saudi Arabia, has been the head honcho of the oil world for nearly six decades; yet these days it seems unable to make a decision without Russia’s blessing, let alone without risking the wrath of the U.S. president,” said Stephen Brennock, an analyst at PVM Oil Associates in London.

U.S. Pressure

OPEC’s largest producer Saudi Arabia, under economic pressure after a collapse in oil prices last month, has sought to walk a fine line between preventing a surplus next year and appeasing Trump. The president has taken to using his Twitter account to berate the group’s policies and sees low oil prices as key to sustaining America’s economic growth.

While ministers met on Wednesday, Trump tweeted that the “world does not want to see, or need, higher oil prices!”

He’s yet to give his view of the OPEC+ agreement. Benchmark Brent crude traded up 4.8 percent at $62.93 a barrel at 3:22 p.m. London time.

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