México

Guyana

Trinidad
& Tobago




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

Oil lingers slightly under 2019 highs Friday on OPEC's supply cuts, U.S. sanctions

By Henning Gloystein / Reuters

SINGAPORE
Petroleumworld 03 22 2019

Oil hovered slightly below 2019 peaks on Friday, propped up by ongoing supply cuts led by producer club OPEC and by U.S. sanctions on Iran and Venezuela.

Concerns that an economic slowdown might soon impact fuel consumption are preventing crude prices from rising further, analysts said.

Brent crude oil futures were at $67.92 per barrel at 0643 GMT, 6 cents above their last close. Brent hit a four-month high of $68.69 per barrel on Thursday.

U.S. West Texas Intermediate (WTI) futures were at $60.04 per barrel, up 5 cents from their last settlement. WTI marked a 2019 peak in the previous session at $60.39.

“Global economic growth still remains a concern,” said Sukrit Vijayakar, director of energy consultancy Trifecta.

Economic growth has slowed across Asia, Europe and North America, potentially denting fuel consumption.

Still, oil prices this year have been propped up by supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies such as Russia.

Investment bank RBC Capital Markets said oil was “still below the fiscal breakeven level in a number of OPEC countries”, meaning that many producers have an interest in further propping up the market.

“We believe that OPEC is likely to extend the deal for the duration of 2019 when they next assemble in Vienna in June,” RBC said.

RBC said Russia was only a reluctant partner in the supply cuts, but would “ultimately opt to preserve the arrangement and retain a leadership role of a 21-nation group that accounts for around 45 percent of global oil output”.

(For a graphic on 'Russia, Saudi & Rest of OPEC crude oil production' click tmsnrt.rs/2CHr9lJ )

Beyond voluntary supply cuts, oil prices have been boosted by U.S. sanctions against OPEC-members Iran and Venezuela.

Iranian crude oil shipments have averaged just over 1 million bpd in March, down from 1.3 million bpd in February and a 2018 peak of at least 2.5 million bpd in April.

“The average 1 million bpd in Iranian exports since November seems likely to fall further,” U.S. investment bank Jefferies said on Friday.

“Only four of the eight exempted countries have lifted crude since then and the other four are likely to see a reduction in their exemptions,” it added.

Venezuelan oil production has also dwindled amid U.S. sanctions and an internal political and economic crisis, plunging from a high of more than 3 million bpd at the start of the century to just 1 million bpd.

U.S. whiskey exports dry up as tariffs bite

Somewhat offsetting disruptions from sanctions and cuts has been a jump of more than 2 million bpd in U.S. crude oil production since early 2018 to a record 12.1 million bpd, making the United States the world's biggest producer ahead of Russia and Saudi Arabia.

This has resulted in increasing exports, which have doubled over the past year to more than 3 million bpd. The International Energy Agency (IEA) estimated that the United States would become a net crude oil exporter by 2021.

(For a graphic on 'U.S. crude oil production & exports' click tmsnrt.rs/2ULQiTd )

 



________________________


We invite you to join us as a sponsor.Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.

_______________________

 

Reporting by Henning Gloystein; Editing by Richard Pullin and Tom Hogue from Reuters

reuters.com 03 22 2019 07:59 GM

THit your target - Advertise with us

PW 300.000 plus request per week

Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1


 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher: Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld ™  / Elio Ohep - All rights reserved

 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.