Oil market shrugs as Saudi Arabia digs deeper to rescue falling prices

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The contract settled down $1.24, or 2.5%, on Friday after a consultancy forecast a rise in Opec production for July despite the pledge to rein in output.

In other oil related news, Saudi Arabia said it would make deep export cuts in August, and encourage better compliance with supply reductions.

President Muhammadu Buhari presented the 2017 Appropriation Bill to the National Assembly on December 14, 2016, with projected oil revenue at N1.99 trillion, on price benchmark of 42.5 dollars per barrel.

Saudi Arabia has signalled last week it was prepared to accommodate rising output from Libya and Nigeria, but stressed that additional measures should be taken by all producers.

"The only significant thing about the meeting is that Nigeria has voluntarily agreed that they will not increase their production above 1.8 [million barrels a day] once they have achieved that level", said Naeem Aslam, chief market analyst at ThinkMarkets U.K.

US House may be near deal on stalled Russian Federation sanctions bill
Ongoing revelations about Trump's relations with Russian Federation is said to be the reason for moving the bill forward. That person, who confirmed he was in the meeting, is described as having ties to Russian intelligence.

The deal was later extended to March next year.

Oil futures rose early today from a three-week low touched the previous session, buoyed by expectations the United States could pull out of a global climate accord and by a report that showed US crude stockpiles had fallen more than expected.

But a new Saudi cut to its exports could have a real effect on the balance of supply and demand, said Bjarne Schieldrop, a commodity analyst with Nordic bank SEB.

Gold at 1254 broke above resistance at 1245 to register a high of 1257 Monday, but it may find it hard to rise above resistance at 1260 on the 1st run. Some countries continue to lag [on compliance with cuts] which is a concern we must address head on.

Energy industry watchers have been skeptical of OPEC's and other major producers' promises to curtail production. But its exports were only 120,000 barrels a day lower in June compared with October, according to Kpler, a ship-tracking firm. "Exports have now become the key matrix to financial markets and we need to find a way to reconcile credible exports data with production data". The struggling countries have gotten their footing back, however, and production is up by more than 400,000 barrels a day, which nicks about a third from the targeted OPEC cuts.

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