Falling oil wipes out gains from Opec production cut

Author

06 May, 2017

Brent actually dipped below $49 per barrel, raising fears of another downturn.

Opec and other oil nations are meeting on 25 May where they will discuss the success of the six-month cutback and whether it should be deepened. But it has been a painful and protracted process.

"With the (Strategic Petroleum Reserve) drawing, total USA petroleum stocks fell 161,000 barrels". Prices are down 7.1 percent this week, heading for a third weekly decline.

Data released on Tuesday indicated United States crude stocks fell 930,000 barrels last week.

The deputy director of energy policy of the Institute of Energy and Finances, Alexey Belogoriev, speaking to Vestnik Kavkaza, noted that, despite the decline in prices, it fits into market volatility within the expected range of fluctuations of $46-55 per barrel.

Even so, Mr McGillian said, "We still have a near record overhang and signs of increasing production in areas of the world outside the producers that agreed to the cuts".

The drillers' most-valuable product was working against them.

-Economists forecast the USA added 190,000 jobs last month as the government reports hiring data at 8:30 a.m.in NY.

The price for West Texas Intermediate hit a five-month low, with the June futures contract losing $2.30 U.S. to end the day at $45.52.

UP ATS arrests suspected ISI agent from Faizabad
Earlier, the Uttar Pradesh police had warned of a possible terror attack in the state by ISI-trained militants. IG Arun said pictures of the cantonment area in Faizabad have been recovered from Aftab’s mobile phone.


Didi Chuxing seals number 1 Asian startup tag
Internationally the company has partnered with several firms for intelligent driving using AI and smart ride-hailing services. Part of the latest investment will be used for Didi's global expansion, the people said.


Check Your Bank Statements If You Recently Bought From Chipotle
We recently detected unauthorized activity on the network that supports payment processing for purchases made in our restaurants. The statement said: "Consistent with good practices, consumers should closely monitor their payment card statements".


"At some point, the market should recognize OPEC isn't the most important player in the market any more", said Commerzbank's Eugen Weinberg, "That is non-OPEC, and, above all, USA shale".

According to him, such volatility in oil prices makes the extension of the deal with OPEC unavoidable. A WSJ survey of 14 investment banks finds an average projected Brent oil prices for this year at $57 per barrel, an estimate that is starting to look a bit overly optimistic.

Both Brent and WTI futures are down around 17% for the year so far despite the OPEC effort to support prices.

The result has been 11 weeks of expansion in U.S. output in longest run of gains since 2012. "I don't see any way you can spin this as bullish".

Things are not all bad. "However I feel it is a bit unusual so close to Opec. meeting where a roll over seems likely", said Oystein Berentsen, managing director for oil trading company Strong Petroleum in Singapore.

But the market is getting a bit "jittery" as countries decide whether to extend those cuts, he said.

Moreover, the markets tend to put too much emphasis on one indicator over another. The latest retreat means Brent has lost 7.8 per cent this week as a resurgence in the USA shale industry and concerns about Opec's ability to curb output have cast doubt on the sustainability of a recovery in the oil market.

Traders also remained cautious ahead of Friday's US government payrolls report, following March's underwhelming 98,000 figure. That leaves little upside to an extension but a massive risk to the downside if OPEC fails to extend.


More news


  • Baxter to lead Bafana against Eagles

    Baxter to lead Bafana against Eagles

    But he quit the tough job in November 2005 after he failed to qualify the side for the 2006 Soccer World Cup . Baxter joined SuperSport United in January previous year and led Matsatsantsa to a top-eight finish.
    Messi the world's greatest player

    Messi the world's greatest player

    Sergio Ramos had also been sent off for a wild challenge earlier in the second half. Then we'll see how it goes until the end.
    Serbia Calls Ambassador Home Over Haradinaj Release

    Serbia Calls Ambassador Home Over Haradinaj Release

    The court's decision prompted the Serbian government to withdraw its ambassador in France for consultations, B92 reports . Serbia has said in the past that it could abolish an extradition treaty with France if Haradinaj is not handed over.
  • Kim Kardashian and Kanye West launch new kids clothing line

    Kim Kardashian and Kanye West launch new kids clothing line

    ET/PT on E! Kim Kardashian says she is still living with fear eight months after the Paris robberyE! Kanye West's wife could not contain her tears and it was moved that she spoke.
    Florida House makes progress on medical marijuana bill

    Florida House makes progress on medical marijuana bill

    Throughout this year's session the Senate position has been less restrictive, and not just when it comes to pain. The Hawaii Senate killed a bill Tuesday that would have allowed the state to lease land in perpetuity.
    Goodyear (GT) Q1 Earnings and Sales Beat Estimates

    Goodyear (GT) Q1 Earnings and Sales Beat Estimates

    The company also released its Europe, Middle East, and Africa segment earnings , as well as its Asia Pacific segment earnings . Moreover, Blackrock Institutional Na has 0.03% invested in Goodyear Tire & Rubber Co (NASDAQ:GT) for 7.45 million shares.
  • Kangana Ranaut Takes Dip In The Ganga, Performs Aarti In Varanasi

    Kangana Ranaut Takes Dip In The Ganga, Performs Aarti In Varanasi

    I am also moving on to the next phase, which means that I will focus on my career as a filmmaker and I'll act in my films. The actress, before the big launch event, visited the Kashi Vishwanath Temple to seek blessings for her upcoming flick.
    Arkansas governor: More resources for flood-stricken areas

    Arkansas governor: More resources for flood-stricken areas

    A school bus trying to drive on a flooded road got stuck and almost tipped over near the town of Iowa, Louisiana. Residents aren't breathing easy yet: More rain on Thursday will keep the river high for several days.

    "Star Wars IX" sets release date

    Having a release date in place is nearly a sure sign that more information will be coming forth before we know it. One that is peppered with fun information about the upcoming direction of Star Wars .
  • What Bill O'Reilly should have learned from looking in a mirror

    What Bill O'Reilly should have learned from looking in a mirror

    Ailes has repeatedly denied all claims against him, and eventually left the network with a reported payout of around $40 million . And the preference, according to two sources familiar with the Murdochs' thinking, is that the new leader be female.
    Hannity defends Fox News president Shine amid report

    Hannity defends Fox News president Shine amid report

    Fox News on Friday declined to comment on speculation about Shine. But the end of FNC "as we know it" didn't happen just today.
    Why Ford Earnings Tumbled 35%

    Why Ford Earnings Tumbled 35%

    Of Ford's profitable regions (it lost money in South America and Africa), North America had the biggest decline in profitability. In Asia, Ford said it earned a pretax profit of $US124 million compared with $US220 million for the same period previous year .