Oil: Market fundamentals are turning more favorable for the price - Danske Bank

Saudi Arabia unsure of reaching OPEC deal on oil cuts

Group will meet Friday with OPEC+ nations to discuss contribution on curbing supply

OPEC members and their non-OPEC allies hope that coordinated cuts will counterbalance the recent increase in output and help raise crude oil prices.

With the development, implementation of Nigeria's 2018 budget, benchmarked at $51 per barrel and daily production of about 2.2 million barrel could become elusive, the experts said.

After hitting highs of more than US$52 per barrel in October, the discount on Western Canadian Select bitumen-blend crude versus New York-traded West Texas Intermediate settled at about US$15 per barrel on Friday, according to Net Energy.

The US crude oil production has jumped by 2.5 million bpd since early 2016 to a record 11.7 million bpd, making the US the world's biggest oil producer.

Things have gone to the extent that before finalising a deal on output cut volumes, Opec ministers were kept waiting for a full day, for the Russian energy minister Alexander Novak to return to Vienna from Moscow after receiving fresh directives from President Putin and obtaining his consent to their next move on the global energy chessboard.

However, these days OPEC was facing considerable pressure to keep oil prices down.

A week earlier, just before Alberta Premier Rachel Notley announced the province would curtail production from large companies to remove 325,000 barrels per day of oil from its over-taxed pipelines starting January 1, the WCS-WTI differential was twice as much, at US$29 per barrel.

As oversupply rises with the USA, however, Russian Federation and Saudi Arabia pumping oil at record levels, crude prices slumped more than 30 percent in the last two months. The US government announced a re-imposition of sanctions on Iran, which would have led to a cut in Iranian oil exports.

In order to put an end to crude oil prices, the organization of oil producing countries has agreed to cut the oil production.

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The Energy Information Administration reported early Wednesday that US crude supplies fell by 1.2 million barrels for the week ended December 7.

Al Falih told reporters in Vienna that OPEC will seriously consider views of world leaders like Modi, who represent the voice of major consuming nations, before taking a decision on cutting output. The end result may be a muddled middle course that neither stabilizes the price of oil nor mollifies a US leader obsessed with keeping gasoline cheap.

OPEC+ managed to iron out a 1-1.2mbpd production cut deal, moving WTI towards 54 United States dollars per barrel and Brent up to 63 USD per barrel.

"So when does the USA send a delegate to OPEC meetings?" said Kyle Cooper, consultant at ION Energy in Houston.

However, the U.S. then granted temporary waivers to eight countries, including crucially China, to allow them to carry on importing Iranian oil, contributing to a plunge in oil prices which wiped out the gains seen since early 2017.

The Trump administration has supported that transition by opening new public land to drilling and loosening restrictions on public and private oil and gas production, with "energy independence" as a frequent talking point.

USA crude was up 3 percent on the week and Brent was 4.8 percent higher.

"Having the next meeting in April will be important for planning purposes to speed the cycle up a bit", she said.

Crude prices extended losses Thursday on concerns about oversupply and low demand expected next year. The reduction was larger than the 1 million bpd cut that analysts had expected.

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