20°C / 22°C
  • Sat
  • 19°C
  • 3°C
  • Sun
  • 20°C
  • 5°C
  • Mon
  • 19°C
  • 3°C
  • Tue
  • 19°C
  • 6°C
  • Wed
  • 18°C
  • 4°C
  • Thu
  • 16°C
  • 4°C
  • Sat
  • 16°C
  • 7°C
  • Sun
  • 19°C
  • 8°C
  • Mon
  • 17°C
  • 8°C
  • Tue
  • 20°C
  • 7°C
  • Wed
  • 19°C
  • 10°C
  • Thu
  • 18°C
  • 8°C
  • Sat
  • 20°C
  • 5°C
  • Sun
  • 22°C
  • 4°C
  • Mon
  • 20°C
  • 6°C
  • Tue
  • 22°C
  • 7°C
  • Wed
  • 20°C
  • 6°C
  • Thu
  • 18°C
  • 5°C
  • Sat
  • 19°C
  • 3°C
  • Sun
  • 19°C
  • 2°C
  • Mon
  • 20°C
  • 1°C
  • Tue
  • 19°C
  • 4°C
  • Wed
  • 19°C
  • 2°C
  • Thu
  • 19°C
  • 3°C
  • Sat
  • 21°C
  • 12°C
  • Sun
  • 23°C
  • 14°C
  • Mon
  • 22°C
  • 13°C
  • Tue
  • 23°C
  • 15°C
  • Wed
  • 23°C
  • 14°C
  • Thu
  • 24°C
  • 14°C
  • Sat
  • 20°C
  • 8°C
  • Sun
  • 20°C
  • 9°C
  • Mon
  • 20°C
  • 10°C
  • Tue
  • 18°C
  • 9°C
  • Wed
  • 28°C
  • 15°C
  • Thu
  • 23°C
  • 15°C
  • Sat
  • 17°C
  • 7°C
  • Sun
  • 21°C
  • 7°C
  • Mon
  • 18°C
  • 8°C
  • Tue
  • 22°C
  • 8°C
  • Wed
  • 22°C
  • 10°C
  • Thu
  • 21°C
  • 12°C
  • Sat
  • 16°C
  • 9°C
  • Sun
  • 18°C
  • 10°C
  • Mon
  • 16°C
  • 11°C
  • Tue
  • 20°C
  • 11°C
  • Wed
  • 20°C
  • 14°C
  • Thu
  • 20°C
  • 13°C
  • Sat
  • 20°C
  • 4°C
  • Sun
  • 21°C
  • 4°C
  • Mon
  • 20°C
  • 5°C
  • Tue
  • 22°C
  • 6°C
  • Wed
  • 20°C
  • 7°C
  • Thu
  • 18°C
  • 5°C
  • Sat
  • 16°C
  • 0°C
  • Sun
  • 17°C
  • 1°C
  • Mon
  • 18°C
  • 0°C
  • Tue
  • 18°C
  • 2°C
  • Wed
  • 18°C
  • 2°C
  • Thu
  • 17°C
  • 3°C
  • Sat
  • 19°C
  • 5°C
  • Sun
  • 23°C
  • 4°C
  • Mon
  • 21°C
  • 4°C
  • Tue
  • 23°C
  • 4°C
  • Wed
  • 19°C
  • 6°C
  • Thu
  • 20°C
  • 6°C
  • Sat
  • 19°C
  • 7°C
  • Sun
  • 20°C
  • 7°C
  • Mon
  • 19°C
  • 10°C
  • Tue
  • 21°C
  • 8°C
  • Wed
  • 26°C
  • 12°C
  • Thu
  • 23°C
  • 13°C

Oil surges after OPEC indicates it will maintain output cuts

Brent crude was up by 96 cents, or 1.3%, at $73.17 a barrel by 0227 GMT, having earlier touched $73.40, the highest since April 26.

Picture: Unsplash

TOKYO – Oil rose to multi-week highs on Monday after OPEC indicated it will likely maintain production cuts that have helped support prices this year, while tensions continued to escalate in the Middle East.

Brent crude was up by 96 cents, or 1.3%, at $73.17 a barrel by 0227 GMT, having earlier touched $73.40, the highest since April 26.

US West Texas Intermediate crude was 82 cents, 1.3%, higher at $63.58 a barrel. The US benchmark reached $63.81 earlier, the highest since 1 May.

Saudi Energy Minister Khalid al-Falih said on Sunday there was consensus among the Organisation of the Petroleum Exporting Countries (OPEC) and allied oil producers to drive down crude inventories “gently” but he would remain responsive to the needs of a “fragile market.”

United Arab Emirates (UAE) Energy Minister Suhail al-Mazrouei earlier told reporters that producers were capable of filling any market gap and that relaxing supply cuts was not “the right decision.”

Meanwhile, US President Donald Trump threatened Tehran on Sunday, tweeting that a conflict would be the “official end” of Iran, while Saudi Arabia said it was ready to respond with “all strength” and that it was up to Iran to avoid war.

The rhetoric follows last week’s attacks on Saudi oil assets and the firing of a rocket on Sunday into Baghdad’s heavily fortified “Green Zone” that exploded near the US embassy.

“Al-Falih and the UAE both put paid to suggestions of increasing production over the weekend and then President Trump essentially telling Iran to bring it on, was a perfect short-term storm for oil prices,” Greg McKenna, strategist at McKenna Macro, told Reuters by email.

OPEC, Russia and other non-member producers, an alliance known as OPEC+, agreed to reduce output by 1.2 million barrels per day (bpd) from 1 January for six months to prevent inventories from increasing and weakening prices.

“This second half, our preference is to maintain production management to keep inventories on their way declining gradually, softly but certainly declining toward normal levels,” al-Falih told a news conference after OPEC and other producers met.

Russian Energy Minister Alexander Novak earlier said an easing of cuts had been discussed and the supply situation would be clearer in a month, including from countries under sanctions.

Another bullish signal was the second week of declines in US drilling operations, with energy companies cutting oil rigs to the lowest since March 2018.

The rig count, an early indicator of future output, fell by 3 to 802, General Electric Co’s Baker Hughes energy services unit said on Friday.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus