After OPEC deal, Texas oil regulator boasts of victory

by Ben Pena June 8, 2017, 1:33

Strict compliance level among OPEC members can increase oil prices to $50-$55 a barrel range from sub-$50, but it will also encourage USA shale producers to boost production, limiting output-cut effects.

Nigeria and Libya were again excluded from this latest cuts as their output remained curbed by unrest, Saudi Energy Minister Khalid al-Falih said.

Oil cartel members meeting in Europe agreed Thursday to extend petroleum production cuts into 2018, as they seek to regain market power amid a surge of US shale output that has kept fuel prices low.

Prices have risen on a consensus that a pledge by the Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russian Federation, to cut supplies by 1.8 million barrels per day (bpd) would be extended into 2018, instead of covering only the first half of 2917.

Iranian Oil Minister Bijan Zanganeh, who often clashed with Saudi Arabia at previous OPEC meetings, said he would follow the majority of members in their decision and added there was no proposal on the table for deeper cuts.

With a production of around 300,000 barrels per day, the Central African country is one of OPEC's smallest oil producers, OPEC statistics show.

Oil prices fell almost 5 percent today as OPEC's decision to extend production curbs fell short of expectations of deeper or longer cuts.

"Don't forget that some Opec members would like to exit the cuts strategy sooner rather than later, and it's highly unlikely the likes of Iran would agree to a rolling over of cuts for longer than 6 to 9 months".

However, the strategy of the 24 involved countries only initially boosted crude oil prices to around USD55 per barrel earlier this year, and oil has since mostly been trading between USD50 and USD54.

Get Ready for Pokemon Ultra Sun and Ultra Moon
But will it also appear on the Nintendo Switch? We'll likely find out more during the Nintendo Spotlight when E3 rolls around. Both games will feature wireless communication for Link Trades and Link Battles, as well as support for the Pokemon Bank.

However, Kachikwu, in an interview with Bloomberg TV ahead of the meeting, said Nigeria was not opposed to joining the production cuts in a bid to prop up oil prices.

The earlier decline in oil price, which started in 2014, forced Russian Federation and Saudi Arabia to tighten their belts and led to unrest in some oil-producing countries, including Venezuela and Nigeria.

That means US shale may emerge as the deal's biggest beneficiary, a reality that highlights the pressure on the two massive players, Saudi Arabia and Russian Federation, to extend their output agreement-even though so far it hasn't significantly lifted prices or drained a global oversupply of petroleum.

The extension, which begins 1 July, holds in place an agreed reduction of 1.8 million B/D, or about 2% of global production, that OPEC leaders said was met with 102% compliance in April. This has slowed the market's rebalancing with global crude stocks still near record highs.

As markets have been expecting the current output limit to be extended, benchmark prices for European and United States oil did not rise on Thursday but fell to USD53.24 and USD50.56 per barrel respectively.

It estimated that a nine-month extension would result in a 950,000 barrels a day production increase in the USA, thus undermining Opec's efforts to balance supply and demand.

Still, analysts were disappointed the group did not seek steeper cuts and a longer extension.

OPEC and independent producers are working on institutionalizing the cooperation between them, but there is still a lot of work to be done in order to achieve this goal, according to al-Faleh.


TOP News

Legal experts to Trump on travel ban: Put down the Twitter
Conservatives meanwhile were warning the tweets could undermine the administration's legal case. He called the courts, which have blocked both versions of the travel ban, "slow and political".

Mother Admits Lying to Others After Baby's Death
She said she wanted to tell Amoroso first, before telling the police; she also claimed she wanted to contact an attorney. When she woke up, she said McCarthy threw her a pair of shoes and the two drove to the seaport with her daughter's body.

New smart speaker expected as Apple kicks off conference
It'll arrive in the United Kingdom and Australia at the same time and, though won't be hitting the Middle East until next year. Share with Us - We'd love to hear eyewitness accounts, the history behind an article, and smart , constructive criticism.

Girl Thrown Out of Soccer Game Because She 'Looks Like a Boy'
She tweeted , "Mili, don't EVER let anyone tell you that you aren't ideal just as you are.i won championships with short hair". But while she led her team to the finals, when it came time to play officials disqualified the team, saying she is a boy.

Ravens sign CB Brandon Boykin and cut Kyle Arrington
When healthy, the 26-year-old cornerback was a consistent contributor for the Philadelphia Eagles and Pittsburgh Steelers . When the New England Patriots released Arrington in 2015, Baltimore signed him to a three-year, $7 million deal.

Does DexCom, Inc. (DXCM)'s current closing price competes the market?
The company has a market cap of $5.87B and its 12 month revenue was nearly $3.59B. (NASDAQ:DXCM) to release earnings on August, 1. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink .

Corbyn: It's a shame PM has not joined in head-to-head debate
The leaders of the two main parties face audience questions separately in a special edition of the BBC show, presented by David Dimbleby.

Trump wishes Comey luck, allies aim at lawman's credibility
Trump fired Comey on May 9, saying it was related to improper handling of the Hillary Clinton probe last summer. Presidents can assert executive privilege to prevent government employees from sharing information.

Abbott Announces Special Session
Ironically, the only one of these groups who appears to be using the special session to fundraise is Texas Values . Those proposals passed the House but died in the Senate during the regular session.

Cavaliers weigh moving Shumpert into starting lineup
The 26-year-old Shumpert averaged 7.5 points, 2.9 rebounds and 1.4 assists over 76 games in 2016, including 31 starts. One of the options Lue has heading into Wednesday's Game 3 is to bench struggling starting guard J.R.