Opec cut throws wrench into record oil short-selling streak

Opec cut throws wrench into record oil short-selling streak

Opec cut throws wrench into record oil short-selling streak

World Oil production is just over 100 million barrels per day, so this is a 1.2% global cut.

The Organization of Petroleum Exporting Countries is seeking firmer ties with non-Opec suppliers regarding the management of oil output as the global market continues to see prices crashing that, in the Philippines, has sent pump prices down for eight straight weeks so far.

As Al-Falih is surely aware, the US this month briefly became a net exporter of oil for the first time in seven decades, with August production rising at the fastest rate in a century. "I know for a fact that oil and gas producers in the USA are probably breathing a sigh of relief that we're providing some certainty and visibility for 2019".

Mazrouei, who is also the United Arab Emirates' minister of energy and industry, said the agreement had been a success and shown "positive progress on removing the inventory overhang". In New York last night Brent was... First because apparently Russian Federation was expecting the Saudis to shoulder all the cuts alone in exchange for their support, and secondly Iran, whose crude exports have been depleted by USA sanctions, objected to bear any cuts.

"Hopefully OPEC will be keeping oil flows as is, not restricted".

OPEC Kingpin Saudi Arabia, meanwhile, has to bear in mind pressure from the U.S. after President Donald Trump demanded in a tweet on Wednesday that the cartel boost output so as to lower prices and help the economy.

OPEC announced Friday that it will reduce overall production among its members by 800,000 barrels a day from October's levels for six months, beginning in January. Saudi Arabia had previously said a 1 million barrel-a-day cut was the likely scenario.

Crude futures fell sharply during the previous session, after OPEC was unable to agree on the terms of crude output cuts. In November, shortly after he was criticized for not punishing Saudi Arabia for the murder of Washington Post columnist Jamal Khashoggi, Trump tweeted out his thanks to the Saudis for lower gas prices that were "l$3 ike a big Tax Cut for America and the World".

OPEC decisions aren't shaped by Twitter: Russia

While Saudi Arabia is still the largest oil producer inside OPEC, its influence over the global oil market has shrunk as the United States and Russian Federation are pumping oil at record levels.

That means Saudi Arabia will cut more than any other country.

Economic Affairs Minister Datuk Seri Azmin Ali said Malaysia's reduced output was in line with its commitment to worldwide cooperation to face economic challenges posed by the global oil market.

"The Conference discussed the increasing market volatility and the broad consensus on the prospects for 2019 that suggests higher supply growth than global requirements, taking into account prevailing uncertainties", said the OPEC press release.

"Low prices are actually not good for the USA economy, " Al-Falih said, a riposte to Trump's repeated calls for OPEC to open the taps.

After Tuesday's "mammoth drop from the API, this morning's EIA report has yielded a much more modest draw", said Matt Smith, director of commodity research at ClipperData.

USA waivers allowing eight countries to continue purchases of Iranian oil expire at the start of May.

"Even a 1 million bpd cut could lead to a "sell the news" reaction in the short term", Jefferies added.

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