Russia, Saudi to extend OPEC+ pact to arrest sliding oil prices

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Oil prices have stopped dropping after a continual sixth-week loss.

The Canadian production cuts are meant to lift the price for WCS, which just a couple of months ago traded at a discount of more than $50 a barrel to WTI. Previous bidding on the benchmarks ended at $59,91 $51,45, respectively.

And as a reaction to a trade agreement between the USA and China.

One of the big uncertainties of the upcoming meeting of major oil producers next week is whether Russian Federation will cooperate with any decision by the Organization of the Petroleum Exporting Countries to reduce production.

As of 09:45 Kyiv time the price of Brent oil is set at 60,04 dollars per barrel. According to Reuters, most of Alberta's oil is exported to the United States. Yet, crude futures were driven up by the rallying equities market, as Cyber Monday kicked off.

"You could say that Alberta is chipping in on the current OPEC cuts to bolster prices unintentionally", Kevin Birn, IHS Markit's director of North American crude oil markets, said by phone Sunday from Calgary.

The focus now shifts to a meeting by OPEC on December 6. February Brent LCOG9, -1.40% settled at $59.46, down 45 cents, or almost 0.8%.

Speaking to Bloomberg, Derek Brower, a director at consultant RS Energy Group said "This might be the critical breakthrough for OPEC and non-OPEC to cut".

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John Sfakianakis, chief economist at the Gulf Research Center, based in Saudi Arabia, said that a renewal of the deal would be healthy for global markets.

On Wednesday, oil prices dipped as the U.S. Energy Information Administration (EIA) recorded a continuous rise in U.S. crude inventories, exceeding market expectations.

OPEC pumped 32.9 million bpd in October, as Saudi Arabia boosted production sharply compared with 32.3 million bpd in January.

Riyadh has suggested OPEC and its allies reduce output by 1 million barrels per day from January 2019 to stem the price falls.

For example, OECD inventories are showing continued buildups, while current expectations are calling for USA shale companies to help boost total production above 12 million barrels a day next year.

Qatar's decision to quit OPEC shows the frustration of small producers at the dominant role of a Saudi and Russia-led panel, a top Iranian official said, adding that any supply cuts should come only from countries that had increased output. At the opening of Brent was trading at 59,73 per barrel, up 18 cents below the closing level ($59,91).

With drilling activity still high, most analysts expect USA oil production to rise further in 2019.