Friday, 20 July, 2018

Oil slumps below $65 as OPEC clash looms, trade war escalates

WTI Crude Oil Daily August WTI Crude OilMore
Scott Davis | 22 June, 2018, 16:17

On the other side, less privileged OPEC members like Iran, Venezuela, Iraq, Angola, Libya and Nigeria whose production levels have been under pressure by different geopolitical and economic factors like US sanctions and budget deficit need the prices to stay at current levels.

Resistance is being led by Iran, deeply wary of any move by regional rival Saudi Arabia that could push down oil prices at a time when Tehran faces renewed sanctions following US President Donald Trump's decision to quit its worldwide nuclear deal, which is likely to send the country's oil exports plummeting. The rise in Oil price is due to the production cut in past few years by OPEC.

Three OPEC sources told Reuters a technical panel - the organisation's economic commission - met on Monday to review the market outlook and present it to member countries' oil ministers later in the week.

In Russia meanwhile, private oil companies are finding it increasingly hard to justify the cutbacks to shareholders eager to cash in on the higher prices.

Meanwhile, Hindustan Petroleum Corporation Limited (HPCL) Chairman Mukesh K. Surana also said fuel prices may be lowered post the upcoming OPEC meeting. "A meaningful increase in long-haul flows from some of the key OPEC exporters would go a long way in turning the crude tanker market around, especially since it will impact the physical market as well as provide a boost to the all-important market psychology". China said it would impose tarrifs on a variety of U.S. goods, including crude and gasoline, in response to President Donald Trump's $50 billion levy on Chinese imports.

While Iran said on Sunday it was opposed to any increase to current quotas, officials from a number of other countries are optimistic that an agreement can be won for a relatively modest hike at this week's meeting in Vienna, the people said, asking not to be named.




Back in late 2016, OPEC famously announced production cuts in a desperate measure to reduce the volume of oversupply in the market, the major catalyst behind oil falling from above $110 to below $30 between mid-2014 and early 2016.

World oil demand in 2018 is forecast to grow by 1.65 mb/d, broadly unchanged from previous month's assessment, to stand at 98.85 mb/d.

"This escalation of the trade war is unsafe for oil prices", said Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA in Singapore.

Shipping data in Thomson Reuters Eikon shows that U.S. crude oil shipments to China have soared in value recently, jumping from just US$100 million per month in early 2017 to nearly US$1 billion per month now.

A cut in Chinese purchases of United States oil may also benefit Iran's sales, which Washington is trying to curb with new sanctions it announced in May. Brent crude jumped $1.55 to $74.99 a barrel.

USA crude exports to China have been rising sharply, thanks to a production surge in the past three years that was a welcome alternative to make up for the cut in supplies from Opec and Russian Federation. "In this connection, OPEC countries will benefit from lowering prices and cooling the surge of the United States activity", Alexei Belogoriev said.

Recommended

Napoli defender Kalidou Koulibaly "confirms" Maurizio Sarri's Chelsea arrival Napoli defender Kalidou Koulibaly They have to give him time because he will suit the football of Chelsea . "At Chelsea I think it will be the same". It's not just in the transfer department where Sarri is hard at work.

Kim Jong-un talks denuclearisation on visit to Beijing Kim Jong-un talks denuclearisation on visit to Beijing At the time, Trump hailed the move, calling it " really a very nice thing " on the part of Kim. "I know that we're engaged on it". Fifty-five percent think North Korea isn't serious about addressing global concerns about its nuclear weapons program.

Neymar fitness concerns continue after training miss Neymar fitness concerns continue after training miss ESPN's FC crew felt that Neymar seemed to invite the physical abuse, preferring free kicks to scoring chances. All of us have to help the team reach its potential but we have to respect individual characteristics.

US House of Representatives to vote on immigration bill US House of Representatives to vote on immigration bill Melania Trump made an unannounced visit to an immigrant children's detention center in McAllen, Texas on Thursday afternoon. It's just a jacket", Grisham said when asked if the message was directed at the media, which has relentlessly attacked Mrs.

Mbappe gives France 1-0 halftime lead over Peru Mbappe gives France 1-0 halftime lead over Peru France's Kylian Mbappe (right) celebrates with teammate Antoine Griezmann after scoring in the 34th minute against Peru . Kylian Mbappe became the youngest goalscorer in France's World Cup history, when he found the net against Peru .

Instagram Introduces IGTV for Long-Form ‘Vertical Format’ Video Up until now, video uploads were limited to just one minute on Instagram, but IGTV extends that limit to an hour. The videos will be smartphone-ready with a vertical orientation, and will be available in up to 4K resolution.

Google Podcasts app is real and you can get it today Google Podcasts app is real and you can get it today "You can try them out by updating your app to the latest version or by downloading ( Android) Messages ", the post added. Google says the changes are rolling out starting today, but you know what that means: server-side rollouts.

Supreme court rules states can collect sales tax from online retailers Supreme court rules states can collect sales tax from online retailers Major online retailers such as Wayfair , Overstock, eBay , Shopify and Etsy , opposed the law change. Louisiana is beefing up its efforts to collect taxes on purchases made from out-of-state in...

'Minor explosion' reported at north London tube station 'Minor explosion' reported at north London tube station Darren Yarlett, 36, was driving home in Southgate but police had cordoned off roads near the station. A witness reported a burning rubber smell before passengers began to run for the station exit.

New GOP plan: Hold kids longer at border - but with parents New GOP plan: Hold kids longer at border - but with parents Trump, said Sunday: "She believes we need to be a country that follows all laws, but also a country that governs with heart". It beefs up border security, clamps down on illegal entries and reinforces other immigration laws.

DHS: Nearly 2000 Children Separated From Adults At Border In Six Weeks DHS: Nearly 2000 Children Separated From Adults At Border In Six Weeks O'Rourke also noted that the policy meant children would spend Father's Day uncertain when they would next see their parents. Crossing the border between official ports of entry is and has always been illegal, according to U.S.

Kim meets with Xi in Beijing Kim meets with Xi in Beijing He has been expected to visit the country to brief Chinese President Xi Jinping on his meeting with the USA president. Kim told Xi he hoped to work with China and other parties to push the peace process, Chinese state television said.

Premier League fixtures: Arsenal face Man City, Chelsea in first two games Premier League fixtures: Arsenal face Man City, Chelsea in first two games There will be another double-header derby day with both the North London and Merseyside clashes taking place on the same weekend. Liverpool will play away from home in the Premier League before every Champions League group game this season.

In tit-for-tat, Trump threatens more tariffs against China In tit-for-tat, Trump threatens more tariffs against China The small-cap Russell 2000 index, whose components are relatively more insulated to a global trade war , was down 0.51 percent. If implemented, the tariffs would mean a sizable amount of imported Chinese goods would be exposed to new tariffs .

Theresa May's meaningful vote compromise rejected by rebel MPs Theresa May's meaningful vote compromise rejected by rebel MPs Asked what he would do next, Grieve said: "I think a group of us will talk further to the government and try to resolve it". I hope they listen to me when I say I don't understand why you've done this last-minute switch", he added.