Brent crude jumps 2 pct on Saudi December supply cut

The bulk of Iraq’s oil is exported via its southern terminals which account for more than 95% of state revenue

Jakob Christensen, an analyst at Danske Bank A/S:"The combination of a stronger dollar and rising oil prices will create pressures, especially on those emerging markets that are oil importers and have large refinancing needs like Turkey, Argentina, India and South Africa". Crude futures were caught in a broader market sell-off in October. Saudi Arabia wants to at least put a floor under oil prices. "Oil prices should be much lower based on supply!" he wrote on Twitter. Trump said in a tweet.

Saudi Arabia and Russian Federation are close, especially as a result of their pact in late 2016, along with other OPEC and non-OPEC producers, to curb output by 1.8 million barrels per day in order to prevent prices dropping too far - but oil markets have changed since then, largely as a result. It lost about 3.6 percent on the week and has shed more than 15 percent this quarter. US crude rose 60 cents to $60.79 a barrel, the first increase after the longest stretch of daily declines since 1984.

Meanwhile, BP chief executive Bob Dudley told The National the announcement by Saudi Arabia to cut production "will firm the price in 2019".

Note that although the Iranian sanctions have taken effect, the American Government has now given waivers to eight of the country's customers, thereby going against its earlier insistence on cutting off all of Iran's oil from the global oil market.

An oilfield development in Saudi Arabia's vast al-Rub al-Khali desert. "We're seeing some signs of this coming out of the U.S. We have not seen the signs globally, nor can we predict that they will persist until 2019".

Still, the president is likely aware that his statement could irritate Saudi leadership.

A meeting between Novak, Al-Falih and other producers on Sunday yielded no formal change in supply policy, but did acknowledge they may need "new strategies". The interference in oil matters risks overreach in a relationship Trump has leveraged to his advantage in the past. In June, it persuaded fellow producers to end 18 months of production cuts and pump more crude in response to falling output in Venezuela and Iran and pressure over prices from U.S. President Donald Trump.

Oil Crashes After Trump Says Prices Should Be 'Much Lower'
In July, Trump called the organization a "monopoly", warning on Twitter that "gas prices are up & they are doing little to help". The decline in prices continued last week after the U.S. said it would let eight countries keep importing Iranian oil.

Root added that commodity prices that are influenced by cartels such as OPEC, which controls almost a third of global oil production, do not necessarily rise and fall with economic cycles.

Representatives of the OPEC nations, Russia, and several other oil-market allies are meeting this weekend and could discuss such measures. Those concerns were driven in part by developments in the United States.

Saudi Arabia's energy minister Khalid al-Falih seemed to have stopped the bleeding in the markets on Monday, saying the oil cartel OPEC and its allies agree there's a need to cut oil supplies next year by around 1 million barrels per day against October levels to balance out supply and demand.

This time, Saudi Arabia is urging allies to focus on the risk of rising oil inventories and forecasts for massive growth in rival supplies next year including US shale. Forecasts of a 2019 supply surplus and slowing demand have also dented the market.

The UAE's Mazrouei said the goal of OPEC and non-OPEC cooperation was to strike a balance in the market.

Oil producers will continue to evaluate the market data prior to the Vienna summit, "but if we need to trim production by one million bpd, we will do", Falih added.

Thus, midstream companies such as Plains All American could be a safer bet on the US oil boom.

Related news:

Hot News

isis-killer-beheading-video-story-top Melania Trump calls for deputy national security adviser to be fired
Nov 14, 2018 - 17:40
Stephanie Grisham, the first lady's communications director, said in a statement that Ricardel should no longer serve in the NSC. The paper added that the first lady's office suspects Ricardel of leaking negative stories about the first lady and her staff.

isis-killer-beheading-video-story-top Chris Evans, Hugh Jackman, more mourn the passing of Stan Lee
Nov 14, 2018 - 17:30
Stan Lee , the man behind many of Marvel Comics' most memorable stories and characters, has passed away at the age of 95 . Stan Lee has been hailed a "creative genius" as a host of Hollywood stars paid tribute to the Marvel Comics co-creator.

isis-killer-beheading-video-story-top Australia concede their biggest stand, Starc his worst over
Nov 13, 2018 - 04:18
But when he fell in the 42nd over, his side's chances virtually went with him. "Dave said about five seconds later, "we'll refer it".

isis-killer-beheading-video-story-top Fed Cup final: Czech Rep go 2-0 up against United States
Nov 13, 2018 - 04:02
Alison Riske was drawn to play Katerina Siniakova in the second singles match on Saturday on an indoor hardcourt at the O2 Arena. The Czech Republic won five titles in the past seven years while the United States won last year's trophy.

isis-killer-beheading-video-story-top Saudi-led coalition resumes air strikes on Yemen’s Hodeidah
Nov 13, 2018 - 03:42
Medical sources at al-Thawra hospital told Reuters that several staff members and patients able to move had fled the complex. The global community needs to say that's enough. "There will be no victor in this war", Le Drian told France 2 TV.

isis-killer-beheading-video-story-top Photos Show Remnants of Elite Israeli Military Force after Gaza Border Clash
Nov 13, 2018 - 02:38
In the West Bank, Abbas angrily accused Israel and the U.S. of ganging up behind his back to entrench Hamas's control over Gaza. Menalis said that despite being injured, he had been instrumental in ensuring the safe return of the undercover unit.

isis-killer-beheading-video-story-top New charges brought against suspect in attempted U.S
Nov 12, 2018 - 02:53
He was already in the criminal justice system due to prior arrests in Florida, NPR's Gabriela Saldivia reported. Prosecutors said each package was marked with a red 'X, ' according to a USA Today report .

isis-killer-beheading-video-story-top Real Madrid target Raheem Sterling signs new deal at Manchester City
Nov 12, 2018 - 02:22
More than you expect. 'We are not friends with all the managers, it is not necessary, but I know we are in the same position. Scoring: "With time and watching myself over on clips, I started to realise what I was doing in front of goal".

isis-killer-beheading-video-story-top Britain May Not Get Brexit Deal With EU - Trade Minister
Nov 12, 2018 - 02:21
Speaking of his brother, Jo Johnson acknowledged that the Brexit negotiations "have at least united us in fraternal dismay". Johnson said " Britain stands on the brink of the greatest crisis since the Second World War ".

isis-killer-beheading-video-story-top Bucks crush defending champs on Golden State's home court
Nov 12, 2018 - 02:12
Chris Paul added 10 points. "I have to talk to him [Friday] to see how he's doing, but hopefully he's doing well". Curry left Thursday night's game against the Milwaukee Bucks after straining the adductor muscle in his left leg.

isis-killer-beheading-video-story-top Kei Nishikori sinks Roger Federer to make the winning start — ATP Finals
Nov 12, 2018 - 02:11
His slump, following injuries and personal issues, is now a thing of the past and his comeback has the flavour of a fairytale. Today through to Friday plays host to the group stages, with each player having a rest day between each group match.

isis-killer-beheading-video-story-top California fire: Search continues as death toll rises to 23
Nov 12, 2018 - 01:52
At least nine people have been killed and 6,700 structures destroyed, which is a record high in California fire history. Ventura County fire chief Mark Lorenzen said some firefighters were "literally pulling people out of burning homes".

isis-killer-beheading-video-story-top Foyth victor helps Spurs head into worldwide break in top four
Nov 11, 2018 - 09:15
It perhaps even took an injury to James Tomkins , replaced by Martin Kelly after an hour, to take a point beyond their reach. How do you manage that? "We have experience in this kind of situation as we were players".

isis-killer-beheading-video-story-top Malibu burning: Kardashians, Lady Gaga, Cher fear for homes
Nov 11, 2018 - 09:07
Wilson tweeted that he had been forced to evacuate, and that his pigs and dogs are OK. Kim Kardashian West also took to her Instagram and wrote, "Pray for Calabasas".

isis-killer-beheading-video-story-top Giroud revels as Chelsea match victor
Nov 11, 2018 - 08:34
It will be close and we're going there with the desire to get a victory away from home. He's a very important player for us and he's very useful for the team.