Home » Money

Russia: Production Cuts Are Needed To Stabilize Oil Markets

01 December, 2018, 06:29 | Author: Shawna Walton
  • WTI oil price slides under $50 per barrel

Oil prices edged lower on Friday due to concerns of oversupply but losses were limited by expectations that the Organization of the Petroleum Exporting Countries (OPEC) and Russian Federation would agree some form of production cut next week. "As Saudi Arabia we can not do it alone, we will not do it alone", Saudi Energy Minister Khalid al-Falih said on Wednesday. Saudi Arabia is pumping as much as 11.2 million barrels a day, though it has said it supports a drop in output and has pledged to reduce monthly exports by 500,000 barrels a day in December. Yemi Osinbajo, prior to the briefing. Another meeting with Russian oil companies was held on Tuesday.

Kachikwu stated that the two countries shared their refining experiences in order to appreciate how his guest's country accomplished its present feat in refinery.

Moscow, however, has repeatedly said that its cooperation with OPEC should and will continue.

The market now expects that a cut of 1 million barrels per day would be possible from OPEC and its allies, said John Kilduff, partner at Again Capital in NY.

In his comments, Al-Falih commended the Nigerian government for its effort and said that Nigeria remained a force to reckon with in the African region.

Iraq's state oil marketer received about 600,000 barrels of crude at storage tanks it uses in Turkey, according to agents at the port of Ceyhan where the tanks are located.

US oil reserves in 2017 exceeded a 47-year-old record when they increased 6.4 billion barrels, or 19.5 percent, to 39.2 billion barrels, the government said.

The price of a barrel of WTI crude oil fell below $ 50, falling to the lowest level since September 2017.

However, one of the most important determinants of oil prices is OPEC.

Saudi Arabia's Al-Falih visited Nigeria this week and Baghdad earlier in November.

The kingdom can ill-afford another slump in oil revenues so soon after the last one, which suggests it will have to cut production, while trying to cajole other OPEC and non-OPEC countries to share the burden.

He was also reported to have said that Russia's 2019 oil output is expected at the same level as this year but could be adjusted, depending on a deal between OPEC and non-OPEC members.

Saudi Arabia faces a familiar but uncomfortable choice: cut production to defend prices or allow prices to fall to protect market share.

On Wednesday, Putin said Russian Federation was in touch with OPEC but Moscow would be satisfied with an oil price of $60 a barrel.

Saudi Arabia dampened hopes of production cuts by OPEC and its allies by saying on Wednesday that it would not act alone and Nigeria stopped short of committing to a new push to curb supplies.

Recommended:

  • The First Lady defends ‘blood’ red Christmas trees

    The First Lady defends ‘blood’ red Christmas trees

    Also participating is Dianna Hart, whose daughter, Demi Lovato, has been vocal about her struggle with addiction. After listing the startling statistics on the reality of the epidemic, Trump struck a hopeful tone.
    Storm Diana To Pelt Britain With Heavy Rain And 80mph Gales

    Storm Diana To Pelt Britain With Heavy Rain And 80mph Gales

    Severe rainfall will affect other parts of the United Kingdom , with the storm expected to bring between 60mm and 80mm of rain. There have been high winds and heavy rain as Storm Diana hits Sussex, and the harsh weather conditions look set to continue.
    Nintendo Switch Top-Selling Console Online During 5-Day Thanksgiving Weekend

    Nintendo Switch Top-Selling Console Online During 5-Day Thanksgiving Weekend

    According to a report from Polygon , Nintendo has a one day sale today for those who purchase the popular Nintendo Switch console. Lifetime sales of Nintendo Switch , which is entering only its second holiday season, have reached more than 8.2 million units.
  • Girl's Letter to Steph Curry Changed How Under Armour Sells His Shoes

    Girl's Letter to Steph Curry Changed How Under Armour Sells His Shoes

    And I want them to grow up believing that they can dream big, and strive for careers where they'll be treated fairly". Steph Curry returns to action after sitting out for nearly a month.
    Trump says pardon for Paul Manafort is 'not off the table'

    Trump says pardon for Paul Manafort is 'not off the table'

    He said Trump is clearly ready for the investigation to come to a close, but more importantly, the country is ready for it to end. Asked Thursday about the plea deal , Trump dismissively said that Cohen "was convicted of various things unrelated to us".
    Irving, Celtics beat Pelicans

    Irving, Celtics beat Pelicans

    But Ainge insists he is willing to stick with Boston's current roster to see if they can get out of their current sticky patch. Davis has two years left on his contract with the Pelicans - with a player option to leave the team after the 2019-20 season.
  • Microsoft wins $480-million US Army contract

    Microsoft wins $480-million US Army contract

    Instead of trying to appeal to consumers, Microsoft indicates that the 50,000 shifted units has been in the business sector. The upgrades required include adding night vision, thermal sensing, and the monitoring of vital signs of the wearer.
    India Slams Pakistani PM Imran Khan for His ‘Pakistan Wants Peace’ Comment

    India Slams Pakistani PM Imran Khan for His ‘Pakistan Wants Peace’ Comment

    The ties between the two countries had strained after the terror attacks by Pakistan-based groups in 2016. He said he didn't understand the reaction in India about Sidhu's visit to Pakistan.
    Here's How To Join The Red Dead Online Beta This Week

    Here's How To Join The Red Dead Online Beta This Week

    However, the developer did provide a couple of new details on what you can do in Red Dead Online beta. Red Dead Online will be in early access and beta phase for now.
  • Google Fi Will Change The Mobile Phone Business

    Google Fi Will Change The Mobile Phone Business

    Started in 2015 as a somewhat experimental service, the network originally supported only a few Google-branded phones . In addition to that, Google has confirmed that for an iPhone to work, it needs to be an iPhone 5S, 6, SE, or newer.
    Saudi crown prince greeted by hundreds of protesters during Tunisia visit

    Saudi crown prince greeted by hundreds of protesters during Tunisia visit

    A banner showing a doctored image of the prince holding a bone saw hung on the headquarters of the Tunisian journalists union. President Abdel Fatah al-Sisi received on Monday, Nov. 26 Bin Salman upon his arrival at Cairo International Airport.
    Paul Manafort 'visited Julian Assange' at London embassy

    Paul Manafort 'visited Julian Assange' at London embassy

    His lawyers declined to answer the Guardian's questions about the visits and have not responded to CNN's inquiries. United States intelligence agencies have concluded that the emails were stolen by Russian intelligence officers.


Popular

Putin and Saudi crown prince are best of buds at G20 summit
Later in the one-minute clip Macron says: "You never listen to me" and the crown prince replies: "I will listen, of course". Saudi Arabia's Crown Prince Mohammed bin Salman meets with India's Prime Minister Narendra Modi in Buenos Aires, Argentina.

GOP US Sen. Hyde-Smith wins divisive runoff, keeps her seat
Tuesday's election will determine whether Hyde-Smith or Espy will serve the remainder of Cochran's term, which ends in 2020. Trump also cautioned that a Democratic win by Espy could "revoke" gains Republicans make in the Senate earlier this month.

Canada imposes sanctions on Saudi nationals linked to Khashoggi murder
CIA Director Gina Haspel didn't attend a Senate briefing on the murder of Jamal Khashoggi and the Saudi war in Yemen. Murphy , D-Conn., would only allow continued USA military operations in Yemen that are aimed against al-Qaida.

Sen. Cindy Hyde-Smith Wins Re-Election in Mississippi Runoff Election
Working with the state Democratic Party, the campaign sent millions of text messages reminding potential supporters to vote. Speaking to supporters after her win, Hyde-Smith vowed to fight for everyone in the state when she goes to Washington.

Chris Smalling: Manchester United suffering from a lack of confidence
It would seem that Marouane Fellaini's "break-glass" capabilities know no bounds. "Relief", Mourinho said of his celebrations. However, while that remains the case, Mourinho should continue to use his unique weapon, and he surely will.

Russian Federation to deploy new missiles to Crimea as Ukraine tensions rise
The United States has previously said that Russia's deployment of the missile systems to Crimea is "not good". Kiev has demanded the release of the sailors and urged Western allies to impose further sanctions on Moscow.

Fake news:United Kingdom seizes confidential Facebook documents
The Tory MP tweeted this evening: "The @CommonsCMS has received the documents it ordered from Six4Three relating to Facebook". A security representative was sent to his hotel with a two-hour deadline to give the papers up.

Trump in MS to rally for GOP Sen. Hyde-Smith
The donation was made Friday, after Hyde-Smith had already come under fire for controversial comments made on the campaign trail. Cindy Hyde-Smith has drawn scrutiny for saying at a November 2 campaign event that she would attend a public hanging if invited.

Trump plans to go ahead and raise China tariffs
Trump said an interview with The Wall Street Journal ( WSJ ) Monday that the levy could be as high as 10 percent. But Kudlow warned that if China holds out against USA demands, Washington could ramp up the trade war.

President Trump threatens to cut all GM subsidies after Lordstown announcement
The Baltimore Operations plant will stop building transmissions, and likewise the Warren Transmission Operations site in MI . GM chief executive Mary Barra said the decision will put the United States car-maker in a better position for the future.