Mexico



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

WTI oil barter near $66 as OPEC's mixed views deepen supply dilemma

OPEC's June 22 meet in Vienna could end in failure: Bernstein. WTI advances 0.3 percent this week, trades above $66 a barrel.

By Heesu Lee

SEOUL
Petroleumworld 06 08 2018

Oil traded near $66 a barrel as conflicting signals from OPEC members about whether their output curbs will be relaxed spurred speculation that an agreement will prove elusive at an upcoming group meeting.

Futures were little changed in New York, after they flipped between gains and losses over the past four sessions. While Saudi Arabia and Russia have signaled they're ready to boost output, Iraqi Oil Minister Jabbar al-Luaibi told Reuters that an increase won't be on the table at the June 22 meeting in Vienna. The U.S. is said to have asked the group to raise supplies by about 1 million barrels a day, further raising the prospect of a contentious gathering.

The meeting may end in failure due to misaligned positions of member countries and the need of unanimity for any decision, according to Sanford C. Bernstein & Co. While crude is heading for its first weekly advance since mid-May, it has receded about 8 percent since late last month on speculation that OPEC and its allies would ease output curbs at a time when U.S. drillers continue pumping at a record pace.

“The views are so widely different among OPEC members that they'll probably fail to reach an agreement at the meeting later this month,” Will Yun, a commodities analyst at Hyundai Futures Corp., said by phone in Seoul. “Prices are likely to seesaw without any clear direction as uncertainties rise in the market.”

West Texas Intermediate for July delivery nudged up 7 cents to $66.02 a barrel on the New York Mercantile Exchange at 12:20 p.m. in Singapore, and are up 0.3 percent on the week. The contract rose 1.9 percent to $65.95 on Thursday. Total volume traded was about 43 percent below the 100-day average.

Putin-Prince Meeting

Brent futures for August settlement were down 8 cents, or 0.1 percent, at $77.24 a barrel on the London-based ICE Futures Europe exchange. Prices on Thursday gained $1.96 to $77.32. The global benchmark traded at a $11.26 premium to WTI for the same month.

Futures rose 1.6 percent to 473.4 yuan a barrel at the mid-day break on the Shanghai International Energy Exchange, after edging up 0.2 percent on Thursday.

With some members of the Organization of Petroleum Exporting Countries resisting the Saudi-Russia proposal to ease output caps that have been in place since 2017, attention is also on a Moscow meeting between Russian President Vladimir Putin and Mohammed bin Salman, the powerful Saudi crown prince, at a World Cup soccer match on June 14. That's only eight days before OPEC's crucial Vienna gathering.

Saudi Arabia and Russia brokered a landmark deal in late 2016 to cut production to shrink a global glut, assembling a group of 24 nations from OPEC and outside the cartel. Putin has spoken on the phone with the Saudi king or the crown prince in the days before recent OPEC meetings to discuss what the Kremlin has called “fruitful coordination on world hydrocarbon markets.”

Trump Complaint

The request from the U.S., which is not part of the supply deal, to raise output was made after U.S. retail gasoline prices surged to their highest in more than three years and President Donald Trump publicly complained about OPEC policy and rising prices. It also follows Washington's decision to reimpose sanctions on Iran, putting the OPEC member's crude exports at risk at a time when fellow group producer Venezuela is struggling with an economic crisis.

________________________

Twitter: @petroleumworld1

Petroleumworld.com

Hit your target - Advertise with Us


Story by Heesu Lee from Bloomberg.


bloomberg.com 06 08 2018

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

November 13 - 15, 2018.

Gubkin University, Moscow
SPE Student Chapter

 

 

 

TOP

Contact: editor@petroleumworld.com,

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

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis 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.