Russian Federation and Saudi Arabia Commit to Oil Cuts Through Next Year

There's still concern that a surge in USA production, together with an increase in Libyan output and signs of recovery in Nigeria, may undercut the Organization of Petroleum Exporting Countries' strategy to stabilize the market and prop up prices.

Saudi Arabia and Russian Federation agreed to extend the current 1.8 million barrels per day (bpd) crude supply cut for another nine months, which was scheduled to end next month.

The Energy Ministers of Saudi Arabia and Russian Federation said that they had "reached an understanding" that it is necessary to keep surplus crude off the market "until March 31, 2018", in order to stabilize a world oil market that is still oversupplied.

Venezuela is undergoing a wave of unrest with protesters angry at an economy in crisis, with food and medicine shortages and soaring inflation. They will present their position to other countries ahead of a meeting between OPEC and other producing nations later this month in Vienna.

WTI Crude is now trading up 3.03 percent at $49.29 per barrel, with Brent Crude up 2.93 percent at $52.33 (1126GMT). The American Petroleum Institute was scheduled to release data for last week at 4:30 p.m. EDT on Tuesday, with the U.S. Energy Information Administration report due at 10:30 a.m. EDT on Wednesday.

Global crude oil supply inched down by 140,000 barrels daily last month, to 96.17 million bpd, the International Energy Agency said in the latest edition of its Oil Market Report.

Donald Trump's Saudi summit was 'show with no value': Iran's Hassan Rouhani
Presidents have largely overlooked allegations of rights abuses in Saudi Arabia and deepened ties in the energy and defence areas. Trump on Monday journeyed to Israel after spending last weekend in Saudi Arabia as part of his first foreign trip as president.

"We assume that the main thing is not the price, but the (intention) to bring average monthly reserves back to the average five-year level", the minister said.

"Today's announcement will likely further extend the oil price rebound started last week on decent stock draws and low positioning", said analysts at Goldman Sachs in a note.

OPEC members agreed in November to cut output by 1.2 MMbpd. Even extending the cuts into the first quarter of next year may not be enough to rebalance supply and demand.

"The ministry stressed that the agreement on oil output cuts had a positive impact on oil prices, adding that additional steps to ensure market stability in the long term were still needed as global commercial oil reserves were above their five-year average".

Immediately after the briefing, oil prices began an upward swing to a three week high, gaining almost $2 on the barrel.

Related News:

  • North Korea has developed road-mobile launchers

    North Korea has developed road-mobile launchers

    The missile tested on Sunday is believed to be capable of reaching Japan and several major US military bases in the country. The reclusive state has been working to develop a nuclear-tipped missile capable of striking the USA mainland.
    First iPhone 9 rumours emerge

    First iPhone 9 rumours emerge

    In order to commemorate the iPhone's tenth anniversary, the company seems to be leaving no stone unturned with the iPhone 8. It's encased in glass on both sides, and its 5.8-inch screen takes up basically the entire front side of the device.
    Antonio Conte gets top prize at League Managers Association awards

    Antonio Conte gets top prize at League Managers Association awards

    Chelsea will be returning to the Champions League next term and it could be a very good decision to retain Costa in the team. Carvalho, who played alongside Terry for six seasons, is now plying his trade for Shanghai SIPG in the Chinese Super League.
  • Cristiano Ronaldo present as Rafael Nadal defeats Djokovic

    If Nadal were to prevail in the Italian Open next week, he will set a new record with 31 ATP Masters 1000 titles. The Spaniard has dropped only two of the 32 sets he's played on the red dirt this year.
    Liverpool squad weaker than United & Arsenal, says Barnes

    Liverpool squad weaker than United & Arsenal, says Barnes

    He has impressed in Serie A, scoring 15 goals, and making 11 assists, in 30 league games last season. Wenger signed the player and has previously claimed he wants to keep the striker at the club.

    Former CIA director says 'Russia brazenly interfered' in election

    Prior to that, Brennan was a top counterterrorism and homeland security adviser to President Barack Obama . Brennan added, however, that he did not know whether any collusion existed as a result of those contacts .
  • Ariana Grande fans tremble as they recall Manchester attack

    Witnesses said they saw bolts and other bits of metal, indicating the bomb may have contained shrapnel meant to maximize injuries. Manchester, 160 miles (260 kilometers) northwest of London , is one of Britain's largest cities.

    Trump in Israel: Jews, Christians, Muslims Must 'Overcome Oppression and Hatred'

    Twenty-two people were killed and more than 50 injured after a terrorist bomb ripped through a pop concert in the English city of. President Donald Trump voiced optimism today about a peace accord between Israel and the Palestinian Authority, but Florida Sen.

    An African at the helm of World Health Organization , a Première

    Achieving universal health care, of course, is an ambitious goal, and it is one which will require strong country-level ownership. Nabarro tweeted his congratulations to Tedros after the vote, writing, "I urge everyone to unite behind him & his vision".
  • Manchester attack: 23yo man arrested, police say

    Manchester attack: 23yo man arrested, police say

    Brent Cobb , who is scheduled to play in Manchester on Tuesday night (May 23), has announced that his show will go on as planned . Fans, many clutching pink plastic balloons, scrambled in panic for exits of the 21,000-capacity Manchester Arena.

    Saudi Arabia king: Trump's visit a 'turning point'

    This included the largest arms deal ever made in U.S. history, according to the White House . The leaked texts did not include the controversial phrase "radical Islamic terrorism".

    Trump Meets Pope Francis At The Vatican

    The extent to which it will offer a detailed after-the-fact description of the encounter is in doubt. Some suggest that the meeting, however, will find the two leaders engaging in a frank discussion.

Most liked

USA seeks joint effort to ensure Venezuela head ends violence
In February, the target was Vice President Tareck El Aissami, whom USA officials accuse of being involved in worldwide drug trafficking.

More New TV Spots For THE MUMMY
Tom Cruise is headlining this new movie from the popular franchise with Sofia Boutella playing the titular monster. There are certain demands when making a movie with Cruise. "I think it was about time to make the monster female".

What Jose Mourinho told his four debutants before Crystal Palace win
You can find a way or another way, then it can be a different approach and a different style, but the ultimate aim is to win. I think we have a good understanding between the manager and myself.

Jakarta's former governor Ahok dropping appeal against jail sentence for blasphemy
He said the imprisoned former governor discussed his decision with his family and legal team before withdrawing his appeal. The sentence was widely criticised as too harsh after prosecutors had demanded that he be given just two years' probation.

Manchester bomber known to authorities, likely did not act alone: UK minister
The Manchester Arena, where the blast occurred, is one of the largest concert venues in Europe with a capacity of 21,000. The Dangerous Woman Tour is the third concert tour by Grande to support her third studio album, Dangerous Woman .

Grand Theft Auto 5 sales top 80 million
It contributed most to recurrent player spending and pushed up catalog title revenue to over 50% of the company's bookings. In the year 2017, the company's net income was $67.30 million or $0.72 per share on revenues of $1.78 billion.

'The Flash' Season 3 Finale Recap: Who Makes the Ultimate Sacrifice?
That scene is rendered pointless anyway however since Savitar reveals that he has no intention of being helped by the team. Gypsy rescues him through a breach after vibing that he was in trouble across the multiverse because they're "connected".

Trump tweets after Middle East trip: 'Trying hard for PEACE'
Science Minister Ofir Akunis (Likud) said Trump could sign up as "a member of the Likud" on the basis of his address. Trump (@realDonaldTrump) May 23, 2017Israel, Saudi Arabia and the Middle East were great.

French PM urges high vigilance after Manchester attack
His daughters Abigail and Sophie contacted their parents by mobile phone, a moment Mr Walker described as "fantastic news". Some reports claimed a suicide bomber was responsible for the explosion.

Kyrie Irving's 42 points pushes Cavaliers past Celtics in Game 4
James sat down with 10 points, his team trailing by 10 and an edgy feeling in the building, lest both terrible trends continued. While with Miami, he had seven points on 2-for-10 shooting in a May 28, 2014, conference finals game against Indiana.

Warriors finish their sweep of the West
Ginobili had 15 points and when Popovich subbed him out with two minutes to go the San Antonio crowd gave him a standing ovation. San Antonio was again without injured star forward Kawhi Leonard , who failed to recover from a left ankle problem.

Morrissey lambasts United Kingdom politicians in wake of Manchester Arena bombing
Grande's panicked fans stumbled to escape the arena after hearing loud noises and seeing people running toward the exits. It took to the next morning for Katrina to realise the extent of what happened - and to hear the number of dead.

Analyst's Proposition on Berkshire Hills Bancorp (BHLB), KBR (KBR)
The savings and loans company reported $0.55 EPS for the quarter, topping the Zacks' consensus estimate of $0.54 by $0.01. The business had revenue of $101.64 million during the quarter, compared to analysts' expectations of $95.90 million.

UK Raises Threat Level To 'Critical'; Attack 'May Be Imminent'
Mayor for Greater Manchester Andy Burnham said: "This was an evil act". "We are grieving today but we are strong". The Manchester Arena management said the explosion happened outside the venue as people began streaming out.

Donald Trump meets with Mahmoud Abbas in Bethlehem
Trump provided few specifics about how a deal might be achieved in a peace process that has been stalled for years. Trump on Monday denied an accusation that has not been levelled against him.