Russia, OPEC Said To Be Nearing New Oil Pact (USO)

Reuters

Bloomberg explains that a year ago, Russian Federation signed an agreement with the OPEC agreement to reduce oil production, which is likely to prolong, reached a preliminary agreement.

Moreover, people involved in the matter told Bloomberg that OPEC and Russian Federation have crafted the outline of a deal to extend their oil production cuts to the end of next year, and that Moscow and Riyadh agree they should announce an additional period of cuts on November 30.

U.S. West Texas Intermediate (WTI) crude futures dipped 0.42% to $58.70 a barrel.

PVM Oil Associates strategist Tamas Varga told Reuters the oil spill that shut the Keystone pipeline was supporting USA crude, flipping prices into backwardation, when front-month prices rise above those for future months, indicating an undersupplied market.

According to Bloomberg report, David Lennox, a commodity analyst at Fat Prophets in Sydney said "it's likely we'll see an extension of the OPEC-led cuts". Shale oil represents only a fraction of global production and “is not an enemy to OPEC, ” he told reporters in Abu Dhabi, referring to the USA deposits that contributed to a worldwide glut.

Benchmark Brent crude has gained 12 percent this year and ended London trading on Friday at $63.86 a barrel, up 31 cents.


The investment bank said it expected a six- or even nine-month extension of production cuts - but added that the level of production cuts would be more significant than the duration.

Global crude inventories are declining and supply and demand are in balance, according to the head of Saudi Aramco , while the United Arab Emirates energy minister said US shale oil doesn't threaten OPEC's efforts to support the market.

Crude prices were further supported by growing signals that the Organization of Petroleum Exporting Countries (OPEC) and its allies will agree to prolong supply curbs when producers meet in Vienna at the end of the month.

Saudi Arabia accepted "a big hit" to its production and is reducing output by nearly 0.5 million barrels per day.

The OPEC-led production cuts have been one of the key catalyst supporting the recent rally in oil prices amid expectations that rebalancing in crude markets is well underway.

Related:

Comments

Latest news

Federal Bureau of Investigation silent as U.S. officials targeted by Russian hackers
The FBI did not inform "scores" of former and current USA policymakers that they were targeted by Russian hackers. In some cases, a few senior policymakers only found out that they were targeted after the AP told them .

Cyber Monday hopes after decline for stores on Black Friday
Also, before sending any personal or sensitive information, make sure the website has "https://" at the beginning of the address. Therefore, talk to your kids about the importance of not giving out personal information in emails or social media.

Dalit face Jignesh Mevani now an independent candidate in Gujarat election
Jignesh has previously stated that Congress had agreed to 90 percent of grants that were present in the Manifesto of his party. Earlier this month, Mevani had a meeting with Congress vice president Rahul Gandhi during the latter's visit to south Gujarat.

Apple Suppliers Solve iPhone X Production Bottlenecks
REUTERS/Stephen LamAn attendee checks out a new iPhone X during an Apple launch event in Cupertino, California, U.S. Yet stock quickly started to improve after the launch and now waiting times are down to 1-2 weeks.

Cougar volleyball selected to NCAA Tournament
It marks the program's third NCAA Tournament selection after the team garnered the Big South's automatic bids in 2010 and 2016. The 25th-ranked Bears have won 21 consecutive matches, the third-longest streak in school history and longest since 1975.

Other news