Oil producers to extend output curbs at OPEC meeting

The Organization of the Petroleum Exporting Countries will meet in Vienna on Thursday to consider whether to extend curbs agreed in December a year ago between OPEC and 11 non-member countries, including Russian Federation.

"A 9-month extension would normalize OECD inventories by early 2018, in our view, but we see risks for a renewed surplus later next year if OPEC and Russia's production rises to their expanding capacity and shale grows at an unbridled rate", the USA bank added.

"We believe that the continuation with the same level of cuts plus potentially adding one or two small producers who wish to join will be more than adequate to bring the five-year balances to where they need to be by the end of the first quarter of 2018", Khalid Al Falih, the Saudi oil minister, said in Riyadhn yesterday.

He said a new agreement would be similar to the previous pact, with minor changes.

Saudi Arabia and Russian Federation, the biggest of the 24 producers in the accord - and which don't get on in other areas either - agreed last week that it should be extended until March.

Saudi Arabia's Gulf ally Kuwait said on Tuesday not every OPEC member was on board for an extension to March 2018, from the initial cut-off of June this year, but most delegates in Vienna said they expected a fairly painless meeting on Thursday.

A release of US strategic reserves could jolt an already imbalanced oil market and undermine attempts by The Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russian Federation, to end a persistent glut.

When the nations last discussed the deal, Libyan output remained seriously curtailed due to several years of post-Gaddafi infighting, earning the North African country an exemption from the quotas that bound the rest of the block's members.

The White House budget plan, released just after Trump left Saudi Arabia, the defacto leader of the Organization of the Petroleum Exporting Countries (OPEC), is seen as undermining OPEC-led plans to tighten global markets by cutting production, and points toward a future of ongoing ample supplies. He said any decision would not be finalized until OPEC meets.

"During my last visit to Vienna for the 6th Opec International Seminar in 2015, I had raised the issue of "Asian Dividend not Asian Premium". With Nigeria and Libya onboard, the cuts could be raised to 1.8 million bpd, the minister added.

The moves comes just after Goldman Sachs warned of "risks for a renewed surplus later next year if OPEC and Russia's production rises to their expanding capacity and shale grows at an unbridled rate".

NEW YORK, May 22 (Reuters) - Oil prices rose on Monday as growing confidence that top exporters would agree to extend supply curbs this week and speculation that the cuts could be deepened further pushed prices to their highest levels in more than a month. Al-Falih said al-Abadi gave the "green light" for Iraq to approve the nine-month extension proposal in Thursday's meeting.

Recommended News

  • Turkey condemns North Korean missile launch

    Turkey condemns North Korean missile launch

    North Korea on Monday unveiled photos of the Earth taken by a camera mounted on a ballistic missile it launched a day earlier. Information for this article was contributed by Kim Tong-Hyung amd Edith M.

    Analysts Ratings for: Synchrony Financial (SYF)

    Synchrony Financial (NYSE:SYF) have shown a high EPS growth of 3.50% in the last 5 years and has earnings growth of -12.30% yoy. The ROA of Synchrony Financial is now valued at 2.50% indicating how profitable the company is in regards to its total assets.

    19 dead in possible terrorist attack at Ariana Grande concert in England

    Bishop Rawstorne Church of England Academy confirmed that Georgina died as a result of the injuries she sustained. The blast took place in the foyer area as a concert by USA star Ariana Grande finished at around 10:30pm.
  • Trump arrives for talks with Palestinian leader in Bethlehem

    Trump is visiting Jerusalem and West Bank on the second part of his maiden foreign trip since taking office in January. Trump's takeaway from his time here are that both Abbas and his friend "Benjamin" are "ready for peace".
    Liberation of Mosul from ISIL is 'imminent — United Nations  envoy

    Liberation of Mosul from ISIL is 'imminent — United Nations envoy

    He cautioned, though, that desperate IS militants are increasingly using civilians as human shields, meaning that fighting remains "a tremendous challenge".

    UK: Explosion at Ariana Grande concert in Manchester claims 19 lives

    Sam Ward, who lives by the arena, said the loud bang he heard "really nothing like I have ever heard in the city center before". Chief Constable Ian Hopkins says forensic investigations are continuing to determine if the attacker had accomplices.
  • Betting tips for NBA Basketball Playoffs Warriors at Spurs

    I'm going to assume he's not going to play considering he wasn't good enough to play in game three despite a ton of games off. You've got to think, and realize. "This is getting a little weird", Ginobili said after questions hinting at retirement.

    Pak SC rules out extra time for Panama Papers JIT

    He said Sharif family had conveyed its reservations about JIT to the Supreme Court but would not make its viewpoint public. Justice Ejaz Afzal stressed that the JIT report findings must be completed within the stipulated 60-day time limit.

    Manchester Attack: ISIS Claims Responsibility as Police Arrest 23-Year-Old Man

    The explosion is the worst attack in the United Kingdom since 52 people were killed in the 7/7 London bombings in 2005. Earlier in the day, BBC had reported the arrest of a 23-year old man in connection with the blast in Machester.
  • White House puts 'Jerusalem, Israel' on website

    Trump is the first sitting president to visit the Western Wall, and the first president to visit Israel so early in his term. The moment was an abrupt interruption of an otherwise warm and smooth welcome for Trump to the Holy Land.
    Golden State Warriors beat San Antonio Spurs to reach NBA Finals

    Golden State Warriors beat San Antonio Spurs to reach NBA Finals

    The Spurs gave it their all Monday night as they tried to extend the series against the Golden State Warriors . He's someone that's a first-ballot Hall-of-Famer who we enjoy having in this league. " Things are flowing .

    Trump asked DNI, NSA to deny evidence of Russian Federation collusion

    Trump has previously indicated that the Russian Federation investigation was a motivating factor in his decision to fire Comey. According to NBC, the former official said Rogers saw the request as a threat to the NSA, which is not a policy organization.

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.