US Energy Secretary Perry To Saudis: We Want Stable Supply And Prices

Kotak positive on GAIL, ONGC after OPEC production cut decision

OPEC and non-OPEC producers agreed at a meeting in Vienna on Friday to a new level of production cuts from January to June 2019, setting it at 1.2 million barrels per day from the current rate of 1.8 million barrels per day.

Fereidun Fesharaki of energy consultancy FGE said in a note that the OPEC-led cuts would likely be "insufficient to mop up the inventories in the targeted three-month period till the end of the first quarter of 2019".

Saudi Arabia could reduce its daily crude oil shipments overseas by as much as 1 million barrels next month, Reuters reports, quoting unnamed sources close to Riyadh.

At 0846 GMT, February WTI crude oil is trading $51.04, down $0.16 or -0.31% and February Brent crude oil is at $59.78, down $0.19 or -0.32%. Traders also continued to express concerns that global economic weakness would lead to a drop in demand which could offset any gains from the planned production cuts.

That's despite Saudi Arabia's energy minister Khalid Al-Falih announcing Friday that 900,000 barrels a day of the kingdom's crude will be taken out of the market between November and January, in addition to cuts from OPEC's allies. "The decision was a very important step for the oil producers, the oil market and development of the oil industry in general". Since October, 2018 Oil price have dropped by nearly 30%, and this decision is expected help oil producers.

More news: Japan finds 2nd U.S. Marine crew member after planes collide

Some countries have been applied a compromise within the framework of the agreement on reduction of oil production.

According to the International Energy Agency (IEA), the demand for crude oil produced by OPEC countries at the world market is now at 31.3 million barrels.

OPEC heavyweight Saudi Arabia, the world's biggest crude oil exporter, will carry most of the burden by lowering its output by 500,000 bpd. The contributions from OPEC and non-OPEC will correspond to 800,000 barrels per day and 400,000 barrels per day, respectively.

Anxious by a drop in oil prices and rising supplies, Opec and its allies including Russian Federation last week agreed to return to supply cuts next year.

Kotak Institutional Equities expects a gradual recovery in crude prices from the recent lows, as the proposed curtailment by OPEC and Canada will balance the global oil supply demand in the near term, especially as seasonally weak demand season gets over in Q1CY19.

Related News:



Most liked

Voyager 2 becomes second spacecraft to reach interstellar space
The probes themselves are functionally identical, but Voyager 2 took a more roundabout way to the edge of the solar system . Three other instruments measured corresponding changes in cosmic rays, low-energy particles and magnetic field strength.

NFL Draft to be hosted in Las Vegas
Parker, alleges antitrust violations and breach of contract, and names the Raiders, the NFL and every other team in the league. Interestingly, Davis says he has an emotional attachment to the fans in Oakland.

Morris (31 pts) leads depleted Celtics past Pelicans 113-100
It was great to see both players take the court again as this Chicago Bulls team needed the much needed jolt as of late. This is a hard one to make a pick on this early, as we don't know the final status of a number of key players.

China increases pressure on US, Canada over Huawei executive's arrest
A spokesman for Canadian Foreign Minister Chrystia Freeland told AFP on Saturday that Ottawa had no further comment on the case . It is alleged she used Hong Kong company Skycom to access the Iranian market in deals that violated U.S. sanctions.

More than 276,000 still without power after massive winter storm slams Southeast
Meanwhile, police in Virginia say there have been significant delays on interstates as vehicles stuck in snow have impeded travel. The Highway Patrol already had responded to more than 670 collisions and almost 1,600 calls for services since the storm began.

Elon Musk Says He Doesn't Respect SEC, Tweets Fall Under 'First Amendment'
The Tesla Factory in Fremont, California is a former GM plant that closed in 2010 but reopened later that year under Musk. Tesla rose slightly in US premarket trading, gaining 0.4 percent to $359.30.

Christmas Dinner Rocketed To International Space Station
Kononenko arrived at the station Monday along with Canadian astronaut David Saint-Jacques and NASA astronaut Anne McClain. Twenty years ago this week, Cabana commanded the shuttle mission that carried up the first USA part of the space station.

NC GOP Softens Opposition To New Election In District With Fraud Probe
Several states have tried to limit ballot harvesting by restricting who can turn in another person's ballot. But he said there was "a lot of angst" among his campaign aides, who "were all upset about what happened".

Paris monuments reopen after latest rioting during gilets jaunes protests
His U-turn on higher fuel taxes - which were meant to help France transition to a greener economy - marks a major departure. The Eiffel Tower , major museums and many metro stations were also closed as parts of Paris went on effective lockdown.

Netanyahu speaks with UN Secretary General about latest Hezbollah threat
Never remiss in raising the ultimate foe, Iran, he hailed Israel's great efforts as the single army in the world to take it on. Stefano Del Col, the commander of the U.N.'s peacekeeping force in Lebanon , a tour of a tunnel that entered Israel.

Donald Trump says chief of staff John Kelly leaving at year's end
It is unclear who will replace Kelly, but a reported leading contender is Vice President Mike Pence's chief of staff Nick Ayers . On Friday, he announced that he had picked William Barr for attorney general and Heather Nauert for United Nations ambassador.

Remains found in NZ believed to be that of missing British woman
Millane's father, millionaire English property developer David Millane, travelled from Britain to New Zealand earlier in the week. Earlier, it was revealed that Millane had been staying at a backpacker hostel in Auckland and left some of her belongings there.

Hundreds of People From Migrant Caravan Breach US-Mexican Border
There are some 5,600 migrants at the Albergue Benito Juarez shelter in Tijuana, according to the local municipal police. According to Reuters , numerous "frustrated and exhausted" immigrants quickly surrendered to the U.S.

Rapper 2 Milly Is Suing 'Fortnite' for Stealing "Milly Rock" Dance
Fortnite's Creative mode gives you a Minecraft-like building tool that lets you create your own islands, mini-games, and rules. Because it's a different mode from Battle Royale , it's likely that this variant will not be available on Android or iOS .

Trump to nominate State Department’s Heather Nauert as United Nations ambassador
Haley similarly had little foreign policy experience when appointed, although she had a national name as the governor of SC . A Republican congressional aide said the president was expected to announce his decision by tweet on Friday morning.