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| Economy | |||
| Oil climbs toward $82 a barrel on indications the OPEC+ alliance is considering slashing production by more than 1 million barrels a day | |||
| 2022-10-04 | |||
Oil climbed toward $82 a barrel on indications the OPEC+ alliance is considering slashing production by more than 1 million barrels a day to revive plunging prices when it meets this week. A reduction of that magnitude would be the biggest since the pandemic, although OPEC+ delegates said a final decision on the size of the cuts won’t be made until ministers gather in Vienna on Wednesday. West Texas Intermediate rose more than 2 percent putting prices on track for the first gain in three sessions. "The slide in oil prices is likely over," said Ed Moya, senior market analyst at Oanda Group. "Energy traders turned pessimistic over the summer given global slowdown fears, but now it seems the risks for oil are to the upside." Oil fell by a quarter in the three months through September as a slowing global economy sapped demand. Banks including UBS Group AG and JPMorgan Chase & Co. said the Organization of Petroleum Exporting Countries and its allies may need to trim output by least 500,000 barrels a day to stabilize prices. A cut of more than 1 million barrels a day "will be enough to put a floor under prices," said Phil Flynn, a senior market analyst at Price Futures Group. A large output cut may draw criticism from the US and other major consuming-nations, where energy-driven inflation has forced central banks to aggressively jack up interest rates. This week’s OPEC+ meeting will be the first in-person gathering since March 2020. The group is deciding on supply for November. In Asia, China issued new quotas for fuel exports and crude imports last week as it seeks to revive its economy, adding to the bullish outlook for oil. The world’s biggest crude importer has seen energy demand take a tumble due to virus lockdowns and a property slump this year. "It’s only going to be a matter of time before oil returns to $100 a barrel, especially with supplies set to get tighten toward the end of the year," said Suvro Sarkar, an energy analyst at DBS Bank Ltd. in Singapore.
Collectively known as OPEC+, the alliance drastically slashed output by almost 10 million barrels per day in April 2020 to reverse a massive drop in crude prices caused by Covid lockdowns. OPEC+ began to raise production last year after the market improved -- output returned to pre-pandemic levels this year, but only on paper as some members struggled to meet their quotas. The group agreed last month on a slight cut of 100,000 bpd from October, the first in more than a year. After soaring close to $140 per barrel in the aftermath of Russia's invasion of Ukraine, oil prices have dropped below the $90 mark. IGNORING THE WEST Stephen Brennock, an analyst with PVM Energy, said OPEC+ would "want to reassert its influence" when the group meets this week. "After all, the producer group has lost control over the oil market in recent weeks," he said. It remains to be seen how the United States and other major oil consumers will react to any OPEC+ decision to slash output. Consumer countries have pushed for OPEC+ to open taps more widely to bring down prices -- calls which the group has largely ignored. "OPEC will not be making any friends among Western leaders, especially petroleum importers whose economies and currencies are ravaged by higher oil prices due to a deterioration in the trade balance," said Stephen Innes, an analyst with SPI Asset Management, ahead of Wednesday's meeting. Observers have cast doubt how much more OPEC+ could possibly be pumping with some of its members struggling to meet quotas. Bjarne Schieldrop, chief commodities analyst at SEB research group, predicted it would be "very easy for the group to implement cuts given that most members are stretched to the limit of what they can produce". He said Saudi Arabia was currently producing 11 million barrels per day. "It hasn't maintained such a high production more than twice in history and then only for 1-2 months," he said.
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| Posted by:Fred |
| #4 Just like the Lumber Industry NN2N1? |
| Posted by: CrazyFool 2022-10-04 13:15 |
| #3 now $86/bar for WTI on the Mercantile Exchange |
| Posted by: Lord Garth 2022-10-04 12:58 |
| #2 Hear, hear! |
| Posted by: Snash Shairt9621 2022-10-04 10:14 |
| #1 Applying the same logical points used by US environmentalist. If we should not drill or dig here due to the environment concerns, and should IMPORT it from some 2nd or 3rd world countries. Where there are far, far less environment regulations and greater careless harm is done. Where it is sloppily handled from the drill site to export site. Polluting "rain forests" / Jungles, sandlands and threatening 100's of species in those areas. Where it is carelessly loaded on to tankers which leak a few 100 barrels of crude oil over the course of the trip. Where it is shipped across oceans to US offload sites and piped to a US refineries. Thus adding an extra 1,000 to 7,000+ miles of uncontrolled Global environmental harm. So if we apply the same logic, it seems to mean US Environmentalists are ok messing up some other county's habitats, as long as it's not theirs. Doesn't that make, US Environmentalist & LSD's Xenophobe's & Racists as defined by what they apply to others for doing such? So don't be a Xenophobe's and/or Racists . Drill Here, Drill Now. |
| Posted by: NN2N1 2022-10-04 07:24 |