The Saudi - led Organization of Petroleum Exporting Countries (OPEC) will meet Thursday to work out a plan to
cut global oil supplies and boost prices, but OPEC member Iran has an incentive and the power to screw the whole plan up.
Not exact matches
The higher the
oil price the Saudis (or OPEC) target and possibly reach, the more areas in the U.S. would be profitable to drill and add to the
global oil supply, potentially wiping out the effect of the
cuts and depressing
oil prices again.
A number of funds bet heavily on an
oil rally early in the year, boosting long futures positions to a record in late February, before
oil went into a prolonged slump as
global supply remained elevated despite
cuts from OPEC.
On Monday, WTI closed at US$ 52.22 a barrel, up by 3 percent, while Brent crude settled at US$ 59.02 — its highest since July 2015 — on the back of growing optimism that the OPEC production
cut deal is finally having a palpable effect on
global supplies of crude
oil, and the equally growing worry that the Middle East could be in for more tensions — this time between the Kurdish nation and the countries it inhabits, following an independence referendum in the Kurdistan autonomous region in Iraq.
There were two principal drivers behind
oil prices» performance: the growing optimism that the OPEC production
cut deal is finally having a palpable effect on
global supplies of crude
oil, and the equally growing worry that the Middle East could be in for more tensions — this time between the Kurdish nation and the countries it inhabits, following an independence referendum in the Kurdistan autonomous region in Iraq.
The looming
supply growth is mostly due to two factors: the scheduled end of OPEC / non-OPEC production
cuts in March and US shale production, including NGLs, «growing like crazy,» said New York - based Mike Wittner, managing director and
global head of
oil research at Societe Generale.
Oman's
oil minister Mohammed bin Hamad al - Rumhi called on all OPEC and non-OPEC producers who took part in the
global supply cut pact to continue their cooperation to maintain suitable Continue Reading
Compliance with a
global deal to
cut oil supply hit a new high in February and an inventory glut is shrinking fast, a joint OPEC and the non-OPEC committee said, Continue Reading
The
global oil stocks surplus is close to evaporating, OPEC said on Thursday, citing healthy energy demand and its own
supply cuts while revising up its forecast for production from Continue Reading
Protests in Libya and
oil theft in Nigeria have reduced
global supply and violence in Iraq has led to concerns that
oil production may be
cut from the country in the future.
If Trump does scrap the deal, it could lead to the re-imposition of secondary sanctions on Iran, pressuring countries to
cut their purchases of Iranian crude, denting
global supplies, pushing
oil prices higher.
Global oil supply growth plunging, with US taking biggest hit for now IEA medium - term report sees
oil market rebalancing in 2017, but investment
cuts pose
supply security risks down the road 22 February 2016
This could see the world's No 3
oil consumer
cutting use further just as weak
global demand and ample
supply are already pushing the international Brent benchmark to multi-year lows.