Oil prices ease in cautious trading ahead of OPEC meeting

Oil producers join forces and cut production again

Saudi Arabia is hoping Russian Federation, one of OPEC's most important allies, cuts down its production by about 250,000 barrels per day, but Russian Federation wants to limit its cut to half that amount.

"A massive liquidation in long positions by money managers has dampened market confidence on oil prices considerably", said Benjamin Lu of Singaporean brokerage Phillip Futures. Ultimately, I do believe that they will eventually have to cut, and as Russian Federation shows up to the meeting during the day on Friday, that could be a bit of a boost.

International Brent crude oil futures were at $61.37 per barrel at 0240 GMT, down 71 cents, or 1.1 percent from their last close.

The real question that needs to be answered is how much did the criticism from President Trump of OPEC's plans to cut output influence Saudi Arabia's decision to push for a smaller production cut.

Mohammed Hamad al-Rumhy, Oman's oil and gas minister, said Wednesday of the production cut expected at Thursday's meeting that "we haven't discussed the numbers". Nigeria and Libya had been exempted from the cuts on the grounds of internal crisis.

Saudi Arabia, the heavyweight within OPEC, said Thursday it was in favour of a cut. It has wanted an exemption.

"If Mr. Hook has come to Vienna to apply for USA membership in OPEC, and this is the reason why he meets OPEC members, the request can be reviewed", Zangeneh told Shana news outlet.

Some experts say that gives the US some leverage over the Saudis, though Al-Falih denied that on Thursday. "But, because the change is gradual over time, I don't think it's going to cause a huge revolution, but you do have to think that OPEC is going to have to take that into account when they think about cutting".

President Trump is pressuring OPEC to increase oil production as members of the organization are set to meet in Vienna on Thursday.

"If they would, then (Russia and others) could adjust their negotiation strategy", said Jan Edelmann, analyst at HSH Nordbank.

Utah Jazz: Grading the Kyle Korver trade
Korver previously played three seasons with the Jazz, when the 76ers traded him during the 2007-08 season. The Jazz have been a disappointment so far, and Korver fills the club's need for an outside shooter.

Saudi Crown Prince, Bahrain's King Open New Oil Pipeline
Regional allies, meanwhile, have thrown their support behind the Crown Prince. The focus of the Human Rights Watch complaint is the Saudi-led war in Yemen.

Mueller says ex-Trump campaign chairman Manafort lied to Federal Bureau of Investigation
Cevallos said the special counsel likely had evidence to prove Manafort - or possibly even the president - lied to investigators. He'll be sentenced in February in his criminal case in Virginia, which he took to trial and lost.

Brent crude, the global benchmark, has plunged from $86 at the start of October to around $60 recently, over concerns at a glut in supply and faltering in demand.

Riyadh under pressure from Trump not to reduce output, Moscow resists deep cuts.

Mr Trump tweeted ahead of the Vienna meeting that "hopefully Opec will be keeping oil flows as is, not restricted".

Iran is now subject to US sanctions and as such won't participate in any curbs, the country's Oil Minister Bijan Zanganeh said.

One issue that might complicate relations between the U.S. and OPEC is the murder of Saudi Arabian journalist Jamal Khashoggi by people linked to the government in Riyadh. USA senators say, after a briefing with intelligence services, that they are convinced Saudi Arabia's de-facto ruler, Crown Prince Mohammed bin Salman, was involved in Khashoggi's death. Some experts say that gives the US some leverage over the Saudis, though Al-Falih denied that on Thursday.

"I'm hopeful that everyone in and even outside the organisation will be supportive to whatever requirements we need to do to balance the market", he said. How strongly it does so could depend on Russia's contribution.

Saudi Arabia has indicated it wants OPEC and its allies to curb output by at least 1.3 million barrels per day, or 1.3 percent of global production, news agency Reuters reported from Vienna. A cut of a million barrels would be the minimum to support the market, and anything less could see the price of oil fall another $10 a barrel, according to Wilson.

For the week, the United States also posted net exports of 4.2 million bpd. of products like gasoline and diesel.

"The stakes are high now for OPEC". It comes just three years after the United States ended a four-decade moratorium on exports of its crude oil. By some estimates, the USA this year became the world's top crude producer.

OPEC members will also have to contend with Iran.

Related news:

loading...

Hot News

isis-killer-beheading-video-story-top Qualcomm unveils 5G mobile platform, Snapdragon 855
Dec 06, 2018 - 00:47
It is the first to offer 5G, and will be in numerous 2019 flagships from Samsung , Google and other phone manufacturers. The new chip, the Snapdragon 855 , will support multi-gigabit data speeds over the 5G networks.

isis-killer-beheading-video-story-top US, China declare 90-day halt to new tariffs, White House says
Dec 06, 2018 - 00:33
Chinese regulators in July blocked Qualcomm's $44 billion takeover bid for its Netherlands-based rival, NXP Semiconductors NV. After the midterm elections, the number of Republican representatives from Iowa dropped from 3 to 1 in the US Congress.

isis-killer-beheading-video-story-top NFL's Chiefs Cut Player Seen Attacking Woman
Dec 05, 2018 - 00:44
Hunt elected against delving into what happened between himself and the woman in the video prior to the incident caught on tape. He told ESPN that he regrets kicking a woman after an argument turned violent and that he is "very embarrassed about it".

isis-killer-beheading-video-story-top Meghan Markle, Kate Middleton Together For Holidays
Dec 05, 2018 - 00:24
Meghan Markle and Kate Middleton's "tit-for-tat war" could "bring the monarchy to its knees", a royal insider has claimed . And clearly, the mom had a huge impact on Meghan when it came to her own cooking, as the royal said in the book's foreword.

isis-killer-beheading-video-story-top Klopp sorry for losing it after Merseyside derby victor
Dec 05, 2018 - 00:16
Wearing the armband for the first time in a Merseyside derby must have been a special feeling for van Dijk. We are on to something with Marco & Marcel, please keep the faith, the tide is turning, believe me.

isis-killer-beheading-video-story-top Israeli Prime Minister under threat from third corruption case
Dec 03, 2018 - 09:51
The prime minister has argued that he is the victim of a left-wing and media conspiracy to topple his conservative government. Two of his top confidants have turned state witnesses and are believed to have provided police with incriminating evidence.

isis-killer-beheading-video-story-top Tyson Fury: 'I should have won, but my respects to Wilder'
Dec 03, 2018 - 09:45
Fury's veteran promoter Frank Warren is also keen for a rematch, calling for an open-air duel in Britain sometime in 2019. I showed good heart to get up. "I was representing everyone who suffers around the world.

Proposal goes wrong; police to the rescue
Dec 03, 2018 - 09:44
NY police have reunited a young couple with their lost engagement ring after an epic search that spanned the globe. Both John and Daniella took to Twitter to express their delight and thank the NYPD officers involved.

isis-killer-beheading-video-story-top Private enterprise will help NASA return to the moon
Dec 02, 2018 - 01:38
While some of the companies are relatively new, others, like Draper , have been involved with the USA space program for decades. Through new partnerships with private companies, NASA aims to ramp up its efforts to return to the moon.

isis-killer-beheading-video-story-top NASA’s director really wants Elon Musk to stop smoking weed in public
Dec 01, 2018 - 01:07
Rather, they likened the effort to high-risk, high-reward bets by venture capital investors. Bush, companies were awarded contracts to fly cargo to the International Space Station .

isis-killer-beheading-video-story-top Ivanka Trump says her private email use is nothing like Hillary Clinton's
Nov 29, 2018 - 00:56
President Trump claimed Monday the administration "didn't" use tear gas on children. "I think it should reach its conclusion". But on Thanksgiving Day, POTUS told reporters, "If they have to, they're gonna use lethal force".

isis-killer-beheading-video-story-top Damarious Randall gives Hue Jackson a game ball, Browns give him loss
Nov 28, 2018 - 01:04
It's bad enough he was sacked as head coach of the Cleveland Browns earlier this season, but Sunday put the icing on the cake. Mayfield carved up the Cincinnati Bengals defense, throwing for 258 yards and four touchdowns in a 35-20 win.

isis-killer-beheading-video-story-top Trump Slams UK Brexit Deal But What's in it for Him
Nov 28, 2018 - 01:03
She added that the government had already been "laying the groundwork" for an "ambitious" trade agreement with the US. The vote in parliament is scheduled for December 11.

isis-killer-beheading-video-story-top Google Pixel 3 lite photographed next to original Pixel, several iPhones
Nov 28, 2018 - 01:01
The mid-range Pixel smartphone will look a lot like the Pixel 3 but expectedly with a single camera setup on the front. We recently reported that there might be another Pixel 3 device that Google skipped during their launch event.

isis-killer-beheading-video-story-top NASA's Insight Mission: When will it land and why should we care?
Nov 27, 2018 - 00:46
And don't expect a flurry of data just after landing today: InSight's science work won't begin in earnest for several months . The spacecraft will then send out two signals-one to say it has landed then another to confirm it was a successful touchdown.