Published: Mon, April 15, 2019
Markets | By Erika Turner

Saudi Oil Cuts Deeper than Promised

Saudi Oil Cuts Deeper than Promised

Oil prices rose one per cent on Friday as involuntary supply cuts from Venezuela and Iran plus conflict in Libya supported perceptions of a tightening crude market, while upbeat Chinese economic data eased concerns about waning crude demand.

Angola's oil production saw a marginal increase last March of 7000 barrels per day (bpd) to 1.454 million bpd, according to secondary sources, the Organization of Petroleum Exporting Countries (OPEC) said.

U.S. West Texas Intermediate crude at Midland yesterday traded at the biggest discount to futures in nearly four months after Phillips 66 closed a unit for maintenance at its Borger, Texas refinery, adding to a backlog of barrels as production climbs.

West Texas Intermediate on Thursday fell $1.03 to settle at $63.58 per barrel, while Brent settled down 90 cents at $70.83 per barrel. The dollar index slipped to its lowest against the euro in more than two weeks, making crude cheaper for non-U.S. buyers.

"(Oil markets will remain tight) as long as Saudi Arabia continues to back the production cut deal as aggressively as it has done so far", said Ole Hansen, head of commodity strategy at Saxo Bank.

Get the details on The Mandalorian and Star Wars Jedi: Fallen Order
But now, writer-director Jon Favreau , fresh off Disney's The Lion King , is ready to introduce The Mandalorian to the world. Pascal's titular character is modeled after iconic bounty hunters Jango and Boba Fett from the earlier trilogies.

The price difference between WTI and Brent oil narrowed to $8.86 per barrel on average in March, according to the IEA. The plant supplies Italy with gas through the Greenstream pipeline.

It is expected that OPEC may consider raising oil output from July if disruptions continue and prices keep rallying.

The producer group's supply cuts have been aimed largely at offsetting record crude production out of the United States.

US oil giant Chevron Corporation said on Friday it will buy Anadarko Petroleum Corporation in a stock and cash transaction valued at 33 billion USA dollars to bolster its position in shale and the liquid natural gas market. OECD oil stocks fell by 21.7 mb on the month in February after three months of increases. Yet it also said an accumulation of economic risks from Europe to Argentina may ultimately lead the agency to reduce its outlook for demand. The IEA also said that US sanctions and power outages pushed OPEC...

Like this: