Can Opec weather the storm over oil?

Oil Prices On Track For Solid Weekly Gains

United States crude rose more than 5.2% for the week while Brent rose more than 4.7%. An OPEC and non-OPEC committee meets in Russian Federation on July 24 to discuss the impact of the deal.

"The most pronounced inventory reduction in the U.S.in 10 months and the resulting decline in USA crude oil stocks to below the 500 million-barrel mark in the last reporting week have clearly prompted a shift in sentiment", said Carsten Fritsch, analyst at Commerzbank.

Two days after (Thursday), oil prices were higher after evidence of stronger demand balanced reports of higher production by key OPEC exporters in a downbeat report by the International Energy Agency.

For cartel Opec - created in 1960 with the aim of supporting a sustainable price on the oil market - it is in some ways a flawless storm.

He added surging stock markets had added a "feel-good factor" to oil.

Oil prices edged higher on July 14 and were on track for solid weekly gains following positive demand signals, production issues in Nigeria and a reported decline in stocks. OECD stocks are still 266 million barrels above the five-year average, the IEA said.

He said representatives from Libya and Nigeria had been invited to a technical OPEC/non-OPEC committee meeting on July 22 ahead of the ministerial gathering, to give presentations on production from both countries.

Chelsea Keen On Sergio Aguero
Premier League holders Chelsea could reportedly land the services of Sergio Aguero during this summer's transfer window. Spanish journalist Manu Sainz claimed last night that the Premier League champions were interested in the City hitman.

The IEA added that "compliance with agreed non-OPEC output curbs improved to 82 percent in June, overtaking compliance from OPEC for the first time since the cut took effect in January".

OPEC's rebalancing effort has been stymied in part by rising output from Libya and Nigeria, which were exempt from cuts and were producing close to 700,000 bbl/d more than at the time of the initial November OPEC cut agreement, according to US investment bank Jefferies.

Combined, Libya and Nigeria have increased output from 2.048 million bpd in April to 2.585 million bpd in June, and a cap would merely hold steady these levels of production, and would still take away from OPEC/NOPEC production quotas that promised to cut production by 1.8 million bpd.

Crude prices are still around levels in late November last year, when a group of oil producers including Russian Federation and Organization of the Petroleum Exporting Countries (OPEC) pledged to withhold around 1.8 million barrels per day (bpd) of output between January this year and March 2018 to tighten the market.

OPEC said last Wednesday the world would need only 32.2 million bpd of its crude next year, down 60,000 bpd from this year and about 400,000 bpd less than it pumped in June.

"The market is having difficulty picking its head up", said Gene McGillian, manager of market research at Tradition Energy in Stamford, Connecticut.

Related News:

  • China's economy slows in second quarter: AFP survey

    China's economy slows in second quarter: AFP survey

    Chinese economic growth topped expectations yet again in the June quarter with GDP expanding 6.9% from a year earlier. On a quarterly basis, China's growth improved to 1.7% in Q2 compared to previous year .
    Musk Gives Ominous Warning About AI, Asserts Regulation Is Needed

    Musk Gives Ominous Warning About AI, Asserts Regulation Is Needed

    That, in the past, has been bad, but not something which represented a fundamental risk to the existence of civilisation... The tech billionaire outlined some of the hypothetical situations in which AI could prove to be a threat .
    West Indies depart Women's World Cup with heavy defeat against England

    West Indies depart Women's World Cup with heavy defeat against England

    England will now head into the semi-finals on the back of a sixth straight victory, while West Indies will return home. India confirmed their place in the semi-finals with a 186-run win over New Zealand at Derby.
  • Technicals on Watch For iShares Core S&P 500 UCITS ETF USD (CSTNL)

    Thinking that something that has worked in the past will no doubt work in the future can be a recipe for portfolio disaster. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend.
    Guj HC junks Essar Steel plea against RBI's insolvency order

    Guj HC junks Essar Steel plea against RBI's insolvency order

    They will take a decision in a day or to as time is a critical factor in this. The steel company's debt has increased to over Rs 42,000 crore.
    New portrait released to mark the Duchess of Cornwall's 70th birthday

    New portrait released to mark the Duchess of Cornwall's 70th birthday

    Prince Charles and Camilla were officially photographed in public for the first time in 1999 after a party at The Ritz hotel. Camilla Parker-Bowles has been celebrating her 70th birthday in style all week with one celebration after another.
  • Fans get behind-the-scenes look at Star Wars with new video

    Director Johnson was on hand to give interviews and spoke out on Carrie's final performance as General Leia. To me, the big enigma is what's going on with Luke Skywalker.
    Ashley Madison's $11.2 Million Offer

    Ashley Madison's $11.2 Million Offer

    The lawsuits allege that Ruby (formerly Avid Life Media) didn't implement adequate security practices. It led to some members of Ashley Madison, which used the slogan "Life is short".
    Jeremy Meeks & Really Rich Girlfriend Spotted Hangin' in Hollywood

    Jeremy Meeks & Really Rich Girlfriend Spotted Hangin' in Hollywood

    Fans fell in love with the former criminal and his good looks after his California mugshot went viral in 2014. She also shared a telling Instagram that read: 'Better to be slapped with the truth than kissed with a lie'.
  • Hamilton takes dominant home win, disaster for Vettel

    Hamilton takes dominant home win, disaster for Vettel

    He said: "There's a feeling I can't really describe.it feels wonderful to be up here". "There were no signs of that happening", the 30-year-old said on team radio.
    HTC USA releases software update for the U11, adds Alexa support

    HTC USA releases software update for the U11, adds Alexa support

    Amazon still needs to work with developers if it ever wants Alexa to be considered as a competitor to Assistant and Siri. Alexa has been estimated to hold a dominant 70% market share in the United States , outselling Google Home 3-to-1.
    Federer into 11th Wimbledon final; faces Cilic for 8th title

    Federer into 11th Wimbledon final; faces Cilic for 8th title

    Martin is still recovering from last Sunday's crash and expects that his sensations will continue to improve as time passes. In kph, the average speed of stage victor Bauke Mollema in the last 30km of the stage after the Dutchman went solo.


Most liked

Spurs want Barkley done before preseason tour
However, the 23-year-old is still continuing his development and they should trust the judgement of their manager Pochettino. Will Spurs sign Ross Barkley? For many weeks now, Spurs have looked likely to sign Everton midfielder Ross Barkley .

Sensex consolidates on gains, Nifty rangebound; both finish in green
The stock rallied as much as 1.76 percent intraday to hit a high of Rs 1,558, the highest level since January 17, 2008. Positive trading in most Asian markets and China's robust economic growth in June quarter boosted market sentiment.

At least 8 dead in Arizona flash flooding
Four people were rescued by helicopter crews Saturday and were treated at a nearby hospital for hypothermia. Visitors are reminded to be vigilant about the weather, he said. "We got a lot worse news".

Woj reports Blazers interested in trade for Carmelo Anthony — NBA rumors
The decision for GM Daryl Morey? "There hasn't been a day that's gone by that me and James haven't talked", Paul said. The average price of a haircut and beard trim among the top 10 Houston barbershops on Yelp sits at about $37.

Top 5 memorable moments at IIFA Rocks 2017
Expressing his gratitude, the " Roja " hit-maker said, "I love the way people have supported me all these years and without them I'm nothing.

South Korea proposes reunion of separated families to the North
If the government meeting goes ahead, it will mark the first official inter-Korea talks since December 2015. Cho said this matter is not included on the talks agenda.

IBM's new CPU makes security seamless thanks to powerful encryption
Payment systems pricing based on the business metric of payments volume a bank processes, not the available capacity. The world's largest MongoDB instance with 2,5-times faster NodeJS performance than x86-based platforms.

Delta Reacts To Ann Coulter's Criticism, Twitter Supports Airline
Predictably, Coulter's fans lined up behind her and her critics defended and even praised Delta . She also said Delta gave her seat to someone who wasn't taller than her.

Minneapolis mayor demands answers after police kill Australian woman
Her stepson Zach Damond, 22, said she called police after hearing a noise near their house in the suburb of Fulton. Police say they were responding to an emergency call about a possible assault in an alley behind the home.

Atari reveals first pictures of its new Ataribox console
Our objective is to create a new product that stays true to our heritage while appealing to both old and new fans of Atari. Clearly inspired by the Atari 2600, the design is a lovely modern reboot of that console.

1.2 million Accords face fire risk from faulty battery sensors — Honda recall
The 2018 Honda Accord has been unveiled in the United States , making its global debut in the automotive market. In the cabin, Honda promises a more premium interior design, feel and finish, while new tech appears as well.

Brand new Ford Fusions loaded with $1 million worth of Marijuana
Agents traced the auto back to a Warren area rail yard, where the vehicle was unloaded from a train, along with fourteen other Fords.

Passengers evacuated from plane after someone 'passed gas'
The flight landed at the airport around 4 pm, and, after all the commuters were taken off the flight, an investigation followed. Authorities later said the incident was a "medical call" and directed all questions to Wake County Emergency Medical Service.

South Korea offers rare talks with North to avoid border conflict
Seoul's acting Red Cross chief Kim Sun Hyang said it wants separate talks at the border village on August 1 to discuss family reunions.

Default HTC 10 Keyboard App Begins Showing Ads To Users
Soon HTC users took to Twitter to express their disappointment, which ultimately invited flak for the Taiwanese company. According to commentators, HTC too seemed surprised has been asking users to uninstall TouchPal's updates .