Global Oil Prices Jump on Talk of Extending Production Cuts

Shares were higher in early trading Monday in Asia despite worries of disruptions from the “WannaCry” ransomware cyberattack ove

Shares were higher in early trading Monday in Asia despite worries of disruptions from the “WannaCry” ransomware cyberattack ove

International Brent crude futures were at $51.63 per barrel at 0255 GMT, up 79 cents, or 1.6 percent, from their last close.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in June CLM7, +2.07% rallied 91 cents, or 1.9%, to $48.75, trading at its highest level since May 1.

Saudi Arabia's oil minister Khalid al-Falih and the Russian energy minister Alexander Novak announced on Monday that the two of the biggest oil exporters in the world have agreed that the current supply reduction deal, which was agreed back in November previous year with an aim to reduce global oil supply by 1.8 million barrels per day requires extension.

Report informs citing TASS that Minister of Energy, Industry and Mineral Resources of Saudi Arabia Khalid Al-Falih has said in a statement: "I think the decisions will be positive in Vienna".

Thirteen members of the Organization of Petroleum Exporting Countries announced a landmark deal to reduce collective output by 1.2 million barrels a day, effective in the first six months of 2017.

"The two ministers agreed to do whatever it takes to achieve the desired goal of stabilizing the market and reducing commercial oil inventories to their 5 year average level, as well as to underscore the determination of oil producers to ensure market stability", the joint statement said.

Shares were higher in early trading Monday in Asia despite worries of disruptions from the “WannaCry” ransomware cyberattack ove

Russian Federation is the world's biggest oil producer, while Saudi Arabia is the biggest exporter globally.

Oil prices rose more than 1 percent on Thursday, as large drawdowns in United States inventories and growing support for continued OPEC output cuts boosted confidence that a seemingly insurmountable glut might finally diminish.

Russian Federation and Saudi Arabia together control around 20 million bpd in daily output.

OPEC has reduced output as promised, but there have been few signs so far that supply has fallen significantly as producers have shielded many key customers, especially in Asia, from cuts. Rising output in the U.S., CMC Markets chief analyst Michael McCarthy said, will reinforce investor doubt about OPEC's strength. Current US production is at 9.3-million barrels a day, up more than 10% since its mid-2016 trough.

American oil-drilling activity has risen for 17 straight weeks, according to Baker Hughes' rig-count data, and the US government last week boosted its domestic-production estimates for this year and next.

Recommended News

  • Former US president Obama had warned Trump against Flynn

    Former US president Obama had warned Trump against Flynn

    Who, a couple days after this first conversation took place, refused to uphold a lawful order of the president. She met with McGahn on January 26 and delivered a warning.
    Dixie State baseball to make sixth-straight NCAA West Regional appearance

    Dixie State baseball to make sixth-straight NCAA West Regional appearance

    The SEC sets an NCAA tournament record by sending all thirteen teams in the conference to the tournament. They started the season on a program record 19-game win streak and are now on a 25-game win streak.
    Lyft to partner with Google's Waymo on self-driving cars

    Lyft to partner with Google's Waymo on self-driving cars

    The two companies said Sunday they will collaborate on developing products and technology for autonomous autos. Through visits to each others' campuses, the conversation developed, resulting in the deal as announced today.
  • Donald Trump delivers first commencement speech as president amid Comey firing scandal

    Donald Trump delivers first commencement speech as president amid Comey firing scandal

    He continued, "The more that a broken system tells you you're wrong", the more you should continue pushing onward. He ticked off early accomplishments of note to evangelicals, including the confirmation of Neil M.

    USA remains at odds with G7 partners over economic protectionist policies

    The gathering paved the way for a meeting of national leaders in Taormina, Sicily on May 26-27. Highlighting the gap between the Trump administration and other countries, U.S.

    South Korea urges both talks and sanctions to rein in N Korea

    Moon also has questioned the deployment of a USA missile defense system the last government rushed into service. During Thursday's call, Xi reaffirmed China's opposition to the THAAD deployment, Moon's office said.
  • Australia receptive to China's One Belt, One Road, but national interest first

    Several other European leaders, including the prime ministers of Spain, Italy, Greece and Hungary, are also attending the summit. Chinese President Xi Jinping met with Turkish counterpart Recep Tayyip Erdogan on Saturday.

    Pyongyang unveils satellite photos of THAAD in South Korea

    Moon's win comes amid an ongoing war of words over a strategic USA missile defense system being deployed in the South. It's highly unlikely that Moon will pursue the same level of rapprochement that past liberal governments took.

    'SNL's' Melissa McCarthy Spotted As Sean Spicer Riding Through New York

    Meanwhile, McCarthy spoke about how SNL first approached her to play Spicer, admitting she was a bit blindsided by the offer. Well, it was actually Melissa McCarthy in her full Spicey costume, and the podium is more of a tricked-out Segway.
  • Spurs take trip down memory lane

    Spurs take trip down memory lane

    We're growing and getting better, so third, second, hopefully next year we'll be the number one. On the pitch we have a team to be proud of that has made great progress again this season.
    Boyish new leader of Austrian centre-right steers nation towards snap elections

    Boyish new leader of Austrian centre-right steers nation towards snap elections

    The move also carries echoes of new French President Emmanuel Macron's novice-heavy list of parliamentary candidates. But that package failed to put an end to the squabbling that has marred the centrist coalition.

    North Korea Says Launch Was New Type Of Missile, Warns US

    Initial data suggested it could be the "mystery missile" that North Korea displayed during a huge parade in Pyongyang last month. Moon sharply denounced the launch Sunday, calling it a "grave act of provocation" against his country and the global community.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.