OPEC panel looking at deepening, extending oil cuts

A pump jack at a well site leased by Devon Energy Production Company near Guthrie Oklahoma

Oil futures rose to the highest in almost a month on growing optimism that big producing countries will extend output cuts to curb a persistent glut in crude, with key benchmarks heading for a second week of gains.

Non-OPEC producers, including Russian Federation, also agreed to cut their output by another, roughly 600,000 barrels a day.

West Texas Intermediate rose 28 cents to $49.35 per barrel, the highest climb since April 26, while Brent increased 30 cents to $52.51 per barrel. "While most remain optimistic over Opec extending the production deal at the upcoming meeting on 25 May, it becomes a question of how United States shale reacts and if (American) pumping intensifies". The market is about priced for an extension of supply cuts next week, although there is possibility of some uncertainty about whether it would be for six or nine months, stated Danske Bank.

US futures rose as much as a 1.5 percent, heading for the biggest weekly gain since March.

In its monthly report last week, OPEC said that global markets are still suffering from oversupply and it appealed to other producers, including the U.S., to stop pumping so much.

OPEC members agreed late a year ago to cut collective production at the start of 2017 by 1.2 million barrels a day for six months.

More news: Roger Ailes, Former Fox News CEO, Dead At 77

The IEA's May report cited strong growth in the shale sector as the reason to revise up its expectations of USA crude output.

It said OPEC-led cuts take about three quarters to start drawing down inventories but USA shale producers can ramp up output in just four quarters to fill in the gap left.

"Today's meeting is just informative", an OPEC source said. Accounting for that means OPEC would need to revisit and whittle down, if necessary, the participating countries' quotas through the duration of the extension.

On the demand side, The IEA reiterated its forecast rate of growth at 1.3 million bpd for this year, to a total 97.9 million barrels, although over the first half of the year demand will grow more slowly because of India, the U.S., Germany, and Turkey.

"People were impatient and thought we'd start drawing 10 million barrels a day since the first week of January", said Amrita Sen, chief oil analyst at Energy Aspects.

Related News:



Most liked

Brazil's Temer: 'I won't resign' amid corruption allegations
JBS representatives did not respond to an email sent by The Associated Press late Wednesday seeking comment. At the same time, a massive corruption scandal involving the state oil company Petrobras was unfolding.

China's Xi calls for S. Korea ties to get back on track
In an apparent fence-mending move, South Korea's new President Moon Jae-In dispatched his envoy Lee Hae-Chan to China after his election victory last week.

Trump's Saudi Visit Holds Important Dimensions, Strategic Issues
Navy's 5th Fleet, which frequently has tense encounters with Iran's navy in the Persian Gulf. The largest U.S. military base in the Middle East is in Qatar, and Bahrain hosts the U.S.

Iranians start voting for next president
Whoever wins Friday's vote could help shape the choice of the next supreme leader, and in turn the direction of the country. However, Rouhani has history on his side: no sitting President has failed to win a second term since 1981.

Key moments of Trump-Comey clash and what's come after
There are six known candidates who interviewed for the position on Saturday at Justice Department headquarters. Comey until the last possible moment because he feared that the communications staff would leak the news.

Say Hello To The New VW Up GTI
Acceleration from standstill to "hundreds" takes 8.8 seconds, top speed of almost 200 kilometers per hour. The GTI upgrade is predictably subtle but does enough to make this Up look "proper", we reckon.

Cavaliers go one up
Despite winning last season, Lue probably can't wait to figure out what to do with Love against this Golden State team. Kevin Love added a playoff career-high 32 points with 12 rebounds while Tristan Thompson chipped in with 20 points.

ICC Champions Trophy 2017: India announce squad; Rohit Sharma, Ajinkya Rahane included
Manish last played for India against New Zealand in October 2016. "Looking forward to Champions Trophy", he concluded. India begin their Group B campaign against arch-rivals Pakistan at Birmingham on June 4.

In a divided France, challenges await President-elect Macron
There is something I can't figure out that didn't work. "I will be at the head of this combat", she said. As president, Macron said he would "guarantee the unity of the nation and. defend and protect Europe ".

Rohit, Shami included in India's Champions Trophy squad
Shami's absence from the ODI scene stretches back even further, the seamer last featuring at the World Cup in March 2015. MSK Prasad said that they will be grooming Rishabh Pant just like Hardik Pandya and Jasprit Bumrah have been groomed.

John McCain: Throw Turkish ambassador out of US
The diplomatic incident has sparked outrage in Washington and even prompted the State Department to summon the Turkish ambassador. We do not do this here. "There is no excuse for this kind of thuggish behavior", McCain initially tweeted after the incident.

Muslim women can opt out of triple talaq, AIMPLB tells SC
Giri also argued that unless there are statutory inroads into personal laws, the courts can not test or strike them down. Kapil Sibal, senior counsel representing AIMPLB, informed the five-judge bench headed by Chief Justice of India J.S.

Trump denies any collusion between his campaign and Russian Federation
And Graham said that could impede Congress's "ability to conduct investigations of all things Russian Federation ". That would make it harder to subpoena records of people who could be subjects of the investigation, he added.

Cannes 2017: Deepika Padukone styles up with smoky eyes, thigh-high slit
Instead, on this year's red carpet, the Chinese actress is introducing her alter ego, the Cannes judge who wears subdued colours. Emily Ratajkowski wore a sexy, sleek number, while Lily Rose Depp looked like a grecian goddess in her gold leaf detail dress.

Confederate Monument No. 3 Down, but 4th Won't Be So Easy
The bill allows local governments to take down a memorial only if voters approve the action at "an election held for that goal ". Dylann Roof, an avowed racist, shot and killed nine black parishioners at the Emanuel African Methodist Episcopal Church.