Category: OPEC (Organization of the Petroleum Exporting Countries)

Oil Traders Are Having Some Fun Again as Price Bubble Bursts

As futures in New York slipped to the lowest since OPEC’s output deal in November, options trading surged and signaled the biggest bias toward a price decline in six weeks. That’s a stark departure from last month, when the West Texas Intermediate benchmark traded at the narrowest price band since 2003.

Oil Slumps to Lowest This Year as Traders Focus on Record Supply

Oil slumped the most in more than a year after government data showed production cuts from OPEC and other exporters have not been enough to reduce U.S. supplies. Saudi Arabia’s Oil Minister Khalid Al-Falih said in Houston Tuesday that global supplies have been slower to decline than OPEC and its partners expected, leaving the door open for an extension of cuts that started in January.

Oil to Hit $40 If OPEC Fails to Expand Cuts, Pioneer Says

Oil prices will tumble to $40 a barrel if OPEC doesn’t extend its pact later this year to cut output, according to one of the most prominent producers in the shale patch. U.S. shale drillers are keeping an eye on the second half of the year to see if OPEC and non-OPEC members extend their agreement, which lasts through June, to reduce production by 1.8 million barrels a day, Scott Sheffield, chairman of Irving-based Pioneer Natural Resources Co., said Tuesday in an interview at the CERAWeek industry conference held by IHS Markit in Houston.

Libya Oil Output Falls as Fresh Clashes Force Ports to Shut

Libya’s crude output dropped after clashes forced two of the country’s biggest oil ports to shut down, threatening the OPEC member’s efforts to revive the production of its most important commodity. The North African country’s production fell to 650,000 barrels a day from about 700,000 barrels a few days ago, according to a person with knowledge of the matter, who asked not to be identified because the person isn’t authorized to speak to media.

OPEC’s Top Producer Is Turning to Wind and Solar Power

The nation most identified with its massive oil reserves is turning to wind and solar to generate power at home and help extend the life of its crucial crude franchise. Saudi Arabia plans to develop almost 10 gigawatts of renewable energy by 2023, starting with wind and solar plants in its vast northwestern desert.

Oil Industry’s Struggles Start to Ease as Shell Reduces Debt

The oil industry’s struggle through the worst slump in a generation showed signs of easing, with Royal Dutch Shell Plc managing to reduce its record debt for the first time since the downturn began. Rising oil prices and billions in cost cuts allowed Europe’s largest energy company and fellow giant Exxon Mobil Corp. to generate enough cash to pay dividends without borrowing last quarter, while Chevron Corp. will do so this year.

Oil Posts Biggest Two-Day Gain in 6 Weeks as Saudis Make Cuts

Oil climbed, posting the biggest two-day gain in almost six weeks, after Saudi Arabia said it cut production even more than required by an OPEC deal. Futures increased 1.5 percent in New York as Saudi Arabian Energy Minister Khalid al-Falih said the kingdom reduced output to less than 10 million barrels a day, going beyond its obligations under an accord between OPEC and other producers to curb production.

Kuwait Says OPEC, Russia Will Fulfill Pledged Oil-Output Cuts

OPEC and its partners will fulfill their implementation of a deal to cut output, having already announced 60 to 70 percent of the promised curbs, Kuwait said. Countries including Saudi Arabia, the United Arab Emirates, Russia, Kuwait, Qatar and Iraq have announced cutbacks that account for the bulk of the deal reached last year, Kuwaiti Oil Minister Essam Al-Marzouk said Monday.

Iraq’s Southern Oil Exports Hit Record Before OPEC Cuts

Iraq’s oil exports from its southern ports in the Gulf reached a record high in December, just before the country was due to join other major producers in cutting output to help curb a global oversupply. Shipments from southern ports in Basra Province averaged 3.51 million barrels a day in December, Oil Minister Jabbar Al-Luaibi said in an e-mailed statement, up from 3.407 million in November.

Brent Oil Closes at 18-Month High After Positive U.S. Jobs Data

Brent oil rose to the highest close in almost 18 months after U.S. government data showed strong job and wage gains while Kuwait and Saudi Arabia signaled they are curbing output. Futures climbed a third day after Labor Department data showed that the world’s biggest crude-consuming country added 156,000 jobs in December, while wages rose the most since 2009.

As Sun Sets on Canada Energy, Grafton Eyes Renewables

Grafton Asset Management Inc., a firm that has brought foreign investment into Canada’s oil and gas industry, is looking to add alternative energy to its portfolio for the first time as it positions itself for the decline of fossil fuels. “I’m worried about the future of the industry in general,” Geeta Sankappanavar, president and chief operating officer of the Calgary-based investment firm, said in a phone interview on Tuesday.

Libya’s Oil Revival Gathers Pace to Highlight Risks on OPEC Deal

Libya, the holder of Africa’s biggest crude reserves, is ramping up output from its biggest oil field again after two years of internal conflict, the latest reminder of just how vulnerable OPEC’s quest to clear a global crude glut might be. The Sharara deposit in the Libya’s south west will ship almost 1.9 million barrels this month from its Zawiya port near Tripoli, according to a loading program obtained by Bloomberg.

Hedge Funds Bet Oil Rally to Extend Into 2017 as Output Cuts Hit

Money managers’ wagers on rising West Texas Intermediate crude prices are triple what they were at the end of 2015, and are the highest since the start of the crude market crash 2 1/2 years ago. Crude futures settled at the highest in almost 18 months on Dec. 28, with investors now eyeing the Organization of Petroleum Exporting Countries and other producers to see who complies with agreed output cuts.

UPDATE 1-UK Stocks-Factors to watch on Dec 28

Dec 28 Britain’s FTSE 100 index is seen opening 0.07 percent higher on Wednesday after a four-day Christmas break, according to financial bookmakers, with futures up 0.1 percent ahead of the cash market open. * BOVIS HOMES: Bovis Homes said it would not deliver the number of houses it originally expected in 2016, after about 180 sales failed to complete before the end of the year, resulting in a likely miss against market profit forecasts.