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Page added on April 11, 2017

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Oil Climbs After Reports That Saudi Arabia Wants Output Cuts Extended

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Crude oil turned positive on Tuesday, reversing course on reports that Saudi Arabia has told OPEC officials it wants to continue output cuts for an additional six months.

Oil futures have been pinned in a range, supported by production cuts from the Organization of the Petroleum Exporting Countries cartel and other producing states but capped by rising U.S. shale oil production.

The market, which retreated early in U.S. trading, turned positive after reports that Saudi Arabia said it wants to extend production cuts enacted in January for another six months when the group meets in May, according to the Wall Street Journal. OPEC members have previously said they lean toward oil cut extensions, as long as non-members are also involved.

Brent crude, the international benchmark for oil, settled up 25 cents at $56.23 a barrel, its highest since March 7.

Brent has risen in each of the previous seven sessions, while WTI gained for the last six. Early in the day, prices had retreated on expectations U.S. inventories could climb again.

U.S. West Texas Intermediate (WTI) rose 32 cents to $53.40 a barrel, surpassing a five-week high.

Analysts said, however, that there are worries demand growth could falter, and other indicators were warning that the market had not yet cleared enough of its surplus to keep prices rising.

“There’s a lot of heightened geopolitical tension on two fronts,” said Phil Streible, senior market strategist at RJO futures in Chicago. Rising concerns about North Korea and Syria may depress oil demand, he said.

North Korean state media warned on Tuesday of a nuclear attack on the United States at any sign of American aggression as a U.S. Navy strike group steamed toward the western Pacific.

U.S. President Donald Trump said in a Tweet that North Korea was “looking for trouble” and the United States would “solve the problem” with or without China’s help.

“Geopolitical tensions are bad for global demand growth,” said Olivier Jakob, managing director of Petromatrix, noting rising acrimony between the United States and North Korea.

He also said the widening discount of the current Brent crude price to the contract in the next month is “basically telling you the market is not actually that tight”.

U.S. crude inventories have touched record highs at the U.S. storage hub of Cushing, Oklahoma, and in the U.S. Gulf Coast in recent weeks, according to U.S. government data.

A Reuters poll of analysts forecast a rise in U.S. crude inventories for a fourth straight week.

Inventory data from industry group API is due later on Tuesday, while U.S. Energy Information Administration figures will be released on Wednesday.

RIGZONE



13 Comments on "Oil Climbs After Reports That Saudi Arabia Wants Output Cuts Extended"

  1. Boat on Tue, 11th Apr 2017 6:31 pm 

    Tillerson tells Russia Assad has to go. It is in their best interest. Looks like the Cheeto has spoken. How will the mastermind respond.

  2. GregT on Tue, 11th Apr 2017 7:11 pm 

    “How will the mastermind respond.”

    Probably in the same manner that he responded with both the US destabilization of Ukraine, and Syria. At least we’d all better hope so.

    The last thing that anybody needs, is a war against the country with the world’s largest stockpile of nuclear weapons.

  3. rockman on Tue, 11th Apr 2017 9:46 pm 

    Sooner or later Assad won’t be worth the price Putan has to pay. Don’t know if we’ve reached that point. In part perhaps it will depend if he has a puppet in place to replace Assad. I just assume that Putin really just wants Syria… With or without Assad.

  4. makati1 on Tue, 11th Apr 2017 10:25 pm 

    Rockman, I suspect Putin wants the his military base there and to block any gas lines from farther south into Europe. That is the same reason the U$ wants control of Syria. Gas lines and to kick Russia out of its base.

    It is ALL about $$$$$ in these U$ Taxpayer funded security force (U$ military) operations for the big corporations. I bet Raytheon just got an order for 60 new Tomahawks. $$$$$$ Warfare Capitalism at its best!

  5. Boat on Tue, 11th Apr 2017 10:29 pm 

    Rock,

    I agree, Putin wants his 2 bases and a major part in the new government. The US would be happy with no Syria conflict with it’s neighbors/Israel and no helping groups like Hezibila. And of course land with peace for the Kurds.

  6. Boat on Tue, 11th Apr 2017 10:37 pm 

    mak,

    Why would the US care about gas lines in Syria. Gas is a European problem. Putin is not in danger of losing their ports. As long as they learn to be a responsible world leader. The US would love a peaceful Russia

  7. A on Wed, 12th Apr 2017 1:47 am 

    @clog

    No offense but you’re a garden

    Einstein said this and it applies to your nationalism

    “Insanity: doing the same thing over and over again and expecting different results. “

  8. es on Wed, 12th Apr 2017 2:04 am 

    Evil US empire may fall sooner than Assad.
    http://www.zerohedge.com/news/2017-04-11/beware-dogs-war-american-empire-verge-collapse

  9. makati1 on Wed, 12th Apr 2017 5:52 am 

    Boat, your insanity is growing. Or are you a masochist? (Enjoyment of pain : pleasure that someone gets from being abused or hurt. M-W)

    It is not gas in Syria, it is gas in Qatar that the US wants to send to Europe, and the only way is thru Syria. Assad said no. The U$ attacks Syria on trumped up lies. (Pun intended) Assad invited Russia to fight the U$ ISIS puppets. Check a map of the ME.

    As for that last statement. You really are insane if you believe that. The U$ corporations would love to plunder Russia just like it has done to so many other countries for the last 500 years. It started to do so when the USSR dissolved, but Putin kicked them out and now they want back in any way possible. Even over YOUR dead body.

  10. rockman on Wed, 12th Apr 2017 9:32 am 

    Mak – Putin doesn’t need Assad per we…any puppet will do. I suspect there’s some Syrian general waiting in the wings. After all Assad and his inner circle are nothing without military backing. Assad et al can relocate to any safe place…no doubt he has $millions, probably $billions socked away. The general can take over, execute a few ranking officers for the UNAUTHORIZED chem attack and make friendly with the US by pledging to destroy ISIS (with the necessary support of Russian boots on the ground.

    That’s what I would do. But, then again, I’m a cold blooded killer as Apneaman keeps pointing out. LOL. Assad is a “battle”…Syria is the “war”. Putin can still win a war while loosing a few battles.

  11. GregT on Wed, 12th Apr 2017 10:12 am 

    “Assad et al can relocate to any safe place”

    This would not jive with Washington’s modus operandus. If Assad is not assassinated, there could always be the chance that he might talk, or somehow help to re-stabize Syria from somewhere else. Not going to happen. Washington and the Israelis do not want stability in the region. Ay any cost.

  12. Apneaman on Wed, 12th Apr 2017 10:58 am 

    rockman, I never said anything about in cold blood.

  13. Baptized on Wed, 12th Apr 2017 1:51 pm 

    Sure is funny that Syria was well known as the “Rivera on the Mediterranean”, Christians, Jews could practice their faith. No they didn’t get the best government jobs, they were free and the cities flourished with great night life and fun. Same facts about Iran in the 60/70’s, until we kept putting dictators in power. You know in 2003 in the worst fighting in Iraq a reporter in Iserial ask some Mossad ( Iserials CIA) employees. What do you all want to come from all this war? as silence feel across the room and Mossad agents made eye contact with each other one finally said Nothing but to continue. Why do we keep going to war with the most open and democratic countries in that region? Look for your self at pictures of Syria in the 90’s and early 2000’s.

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