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.

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.

"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:

  • Trump reaffirms commitment to Israel, achieving peace in Middle East

    But Rubio said some definitions of "peace" aren't acceptable to Israel or the U.S. "I think it is a very noble endeavor". Tuesday marked the third meeting between the two leaders in May.
    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.

    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.
  • 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".
    South Korea fires warning shots at North after 'drone' crosses border

    South Korea fires warning shots at North after 'drone' crosses border

    Liu spoke to reporters after emergency Security Council consultations behind closed doors on the North's latest missile test. Analysts said the Hwasong travelled further than any previous ballistic missile launched by the North.
    UK Raises Threat Level To 'Critical'; Attack 'May Be Imminent'

    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.
  • Asus Zenfone Live Launched in India at Rs 9999

    Asus Zenfone Live Launched in India at Rs 9999

    Moreover, the ZenFone Live also comes with a pair of MEMS microphones to "reduce noise and ensure that your voice is heard". It includes 13 mega pixel rear camera with an aperture of f/2.0, a 5-megapixel front camera with an aperture of f/2.2.

    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.

    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.
  • 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.

    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".
    Donald Trump meets with Mahmoud Abbas in Bethlehem

    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.

Most liked

Manchester bombing: City in grief after children killed
And an ambulance official says 12 children under the age of 16 were among 59 injured in the attack as people left the concert. Dozens of parents frantically searched for their children, posting photos and pleading for information on social media.

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.

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".

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 .

'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".

Southcross Energy Partners, L.P. (NYSE:SXE) Valuation According To Analysts
The stock of Holly Energy Partners, L.P. (NYSE:HEP) has "Buy" rating given on Friday, March 18 by Goldman Sachs. Sterne Agee CRT initiated Intercontinental Exchange Inc (NYSE:ICE) on Friday, May 20 with "Buy" rating.

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.

Sundar stuns Mumbai Indians as Rising Pune Supergiant progress to final
With Stokes no longer available to add depth to the batting order, Manoj Tiwary and Dhoni will need to step up their game further. That included 41 runs off the last two overs, when they smashed Mitchell McClenaghan for 26 runs and Jasprit Bumrah for 15.

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 .

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.

Philippine troops battle IS-linked gunmen in southern city
Two soldiers and a police officer have been killed, Defense Secretary Delfin Lorenzana said. Hapilon is believed to be the Islamic State's (ISIS) leader in Southeast Asia.