Oil prices are on the rise. One driver is the OPEC limits agreed in 2016 to kick in at the start of 2017. The OPEC basket of 14 crudes is trading at $60.49 (22/11/2017). Note that the OPEC basket excludes US and UK crudes (WTI and Brent) and includes Middle Eastern, North African, Southern African and South American crudes (example: Merey, Venezuela). Angolan Girassol (extracted by BP, ExxonMobil and other partners) is part of the basket. The OPEC basket is also known as the ORB (OPEC reference basket).
Showing posts with label opec. Show all posts
Showing posts with label opec. Show all posts
Wednesday, 22 November 2017
Thursday, 1 December 2016
Oil Price Rallies after OPEC decides to cut production
OPEC decided to cut oil production on 30 November 2016 at a meeting in Vienna - its first action to cut output since 2008. The cuts are to take effect from January 2017.
Saudi Arabia will have the greatest reduction in daily production, by 486 thousand barrels per day (b/d).
Indonesia suspended its membership and will not participate.
The dispute arose not over the need for cuts, but the size of the output cuts requested of Indonesia.
Negotiating for Indonesia was ex-Citi MD and Mineral and Energy Resources Minister (since October 2016) Singapore-born Ignasius Jonan (who also formerly served as Minister for Transportation).
Saudi are followed by Iraq who will cut production by 210 tb/d, followed by the next biggest producer UAE, by 139 tb/d.
OPEC plans to hold talks with non OPEC producers on December 9th.
The announcement sent oil futures as well as oil stocks rallying. Royal Dutch Shell (RDBS.L) shares were up 2.8% to 2178 on 1 December 2016. BP (BP.L) was up 2.3% to 470. The stocks fell prior to the OPEC announcement on concerns that the cartel would fail to limit output.
Saudi Arabia will have the greatest reduction in daily production, by 486 thousand barrels per day (b/d).
Indonesia suspended its membership and will not participate.
The dispute arose not over the need for cuts, but the size of the output cuts requested of Indonesia.
Negotiating for Indonesia was ex-Citi MD and Mineral and Energy Resources Minister (since October 2016) Singapore-born Ignasius Jonan (who also formerly served as Minister for Transportation).
Saudi are followed by Iraq who will cut production by 210 tb/d, followed by the next biggest producer UAE, by 139 tb/d.
OPEC plans to hold talks with non OPEC producers on December 9th.
The announcement sent oil futures as well as oil stocks rallying. Royal Dutch Shell (RDBS.L) shares were up 2.8% to 2178 on 1 December 2016. BP (BP.L) was up 2.3% to 470. The stocks fell prior to the OPEC announcement on concerns that the cartel would fail to limit output.
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