Published: Fri, June 22, 2018
Markets | By Erika Turner

Stocks fall with United States dollar; oil slips before OPEC

Stocks fall with United States dollar; oil slips before OPEC

Regional rival Iran however is fiercely opposed to unwinding the agreed production curbs, as its oil industry is bracing for fresh sanctions following US President Donald Trump's decision to quit the global nuclear pact.

"Essner is betting that the Vienna meeting will yield an agreement to boost production by 500,000 to 800,000 barrels a day, far below the 1.5 million barrel figure floated recently by Russia's oil minister, Alexander Novak".

Oil demand has been rising faster than expected, pushing prices higher despite a big increase in USA oil output.

Observers say the participating countries could simply agree to stop exceeding their quotas for cutbacks, and stick to the agreed target of trimming production by 1.8 million barrels per day (bpd).

Global benchmark Brent crude fell more than 2 percent ahead of a meeting of the Organization of the Petroleum Exporting Countries, where producers were expected to boost output to stabilize prices.

"The most important thing is the consumers", Saudi Energy Minister Khalid Al-Falih said Thursday.

Nigeria, Saudi Arabia and other members of the Organisation of Petroleum Exporting Countries, OPEC, have disagreed over oil supplies as meeting of the organisation begins tomorrow in Vienna, Austria.

Luka Doncic at forefront for Atlanta Hawks'at 3rd overall
It's the first time two National Basketball Association players have gone head-to-head in the category since 2005. You put him in a ball screen, middle of the floor, with a good roller, it's a really tough cover.

Phil Flynn, an oil analyst with The Price Futures Group, expects a deal for around an extra 1 million barrels a day. Iran does at least "understand the necessity to reduce cuts" and has agreed to discuss the matter, Oman's Oil Minister Mohammed Al Rumhy said earlier in the day.

Other OPEC members, including Iran, oppose such a move, fearing a price slump. That surge prompted the US president to complain on Twitter that the cartel was artificially inflating prices.

Benchmark Brent crude fell $1.10 a barrel to a low of $73.64 before recovering slightly to $73.74, down $1.00 by 0820 GMT.

It showed that many nations have been lobbying behind the scene to enable them have their ways due to strong pressure from major consuming nations, especially the United States and China that prefer increased supply and lower prices.

OPEC takes its decisions by unanimity, so if Iran were to wield its veto Saudi Arabia would be left only with the option of assembling a coalition of willing countries to bypass Tehran's opposition.

"We are making good progress", said United Arab Emirates Energy Minister Suhail Al Mazrouei, who also now holds the position of OPEC president.

-With assistance from Salma El Wardany, Annmarie Hordern, Manus Cranny, Elena Mazneva, Laura Hurst, Javier Blas, Grant Smith, Francois de Beaupuy and Golnar Motevalli.

Like this: