What to Expect From the OPEC Meeting

What to Expect From the OPEC Meeting

Reuters reported that the reinstitution of us sanctions in November could cut Iran's oil output of almost 4 million barrels a day by a third. Iran has objected to having members with additional capacity such as Saudi Arabia fill Venezuelan output gaps.

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 worldwide nuclear pact.

"I'm confident that at the end of the day reason will prevail", Saudi Energy Minister Khalid Al-Falih told reporters in Vienna after a succession of meetings.

Saudi Arabia is reportedly looking to increase production by 1 million barrels per day, while Russian Federation has said it would like to see an extra 1.5 million barrels per day to the market before reassessing the next move.

So, the kingdom may want to compromise and go for a smaller oil production increase, the option that apparently Iran favors, to get an unanimous communique.

Also supporting prices was a drop in Libyan supplies due to the collapse of an estimated 400,000-barrel storage tank.

Iran is understood to want a coded critique of the U.S., which recently ended an worldwide nuclear agreement with Iran, in the final Opec agreement on Friday. In turn, USDCAD rose to a fresh 1 year high as markets reduced rate hike bets from the Bank of Canada with OIS markets now pricing in a 53% chance of a hike in July from 60%.

Google Podcasts Android app is live with personalized recommendations
It also syncs across devices with Assistant, so that you can pause playback on your phone and pick it up at home, for example. As of writing, only the Android Messages website is live with the QR code scanner on mobile devices to follow soon.

If this threat turns into reality, U.S. crude oil-which is now in high demand in Asia due to the wide $9-a-barrel discount to the Brent Crude worldwide benchmark-will become uncompetitive.

Any production increase would help offset a decline in output by Venezuela, an OPEC member consumed by economic and political crisis, and the prospect of reduced exports from Iran - OPEC's third-biggest producer - now that the U.S.is in the process of re-imposing sanctions over that country's nuclear program.

"If China's import demand dries up, more than 300,000 bpd of United States crude will have to find a new destination", energy consultancy FGE said. In reaction to the announcement, Brent crude futures are trading higher by over $2, given that the increase can easily be absorbed by the market and will unlikely tip the oil balance into negative territory. The new deal would effectively roll back the deeper-than-intended cuts from nations such as Venezuela, returning the curbs back to the level originally agreed in 2016, the delegate said.

The 24 nations in the pact, known as OPEC+, are now keeping more than two million bpd off the market.

Iran's oil minister, Bijan Namdar Zanganeh, questioned this week whether OPEC is united enough to reach any agreement, and said Trump had politicized the debate over oil prices.

"This puts Saudi Arabia in a tough position, as unanimity is needed for any accord to be reached", it added.

Related Articles

  • Neymar returns to practice, Brazil guarantees he is ready

    Neymar returns to practice, Brazil guarantees he is ready

    He tried to continue playing but a few moments later chose to leave, kicking a ball away with his left foot before limping away. Petersburg, but the federation posted photos and a video of Neymar in action in training with the rest of the squad.
    Donald Trump & Immigrant Child Featured On Time Magazine's Latest Cover

    Donald Trump & Immigrant Child Featured On Time Magazine's Latest Cover

    The photograph of the Honduran girl was just another such experience of a family trying to cross over Rio Grande's northern bank. Time Magazine used a cutout of the little girl on its recent cover , where she was depicted confronting President Donald Trump .
    U.S.  announces it will leave United Nations  human rights council

    U.S. announces it will leave United Nations human rights council

    Haley threatened the pull-out past year , citing longstanding USA complaints that the 47-member council is biased against Israel . Added Kenneth Roth, the executive director of Human Rights Watch: "All Trump seems to care about is defending Israel".
  • Netanyahu's Wife Charged With Misuse of Public Funds

    Netanyahu's Wife Charged With Misuse of Public Funds

    Sara Netanyahu was charged on Thursday along with Ezra Saidoff, a former deputy director general of the Prime Minister's Office. In a statement posted on the prime minister's Facebook page, her lawyers called the indictment "baseless and delusional".
    New Zealand Prime Minister Jacinda Ardern Gives Birth To Baby Girl

    New Zealand Prime Minister Jacinda Ardern Gives Birth To Baby Girl

    She wrote on social media at the time: "We'll be joining the many parents out there who wear two hats". Ms Ardern assured she would still be on call, and the government would be business as usual.
    Federation Internationale de Football Association  'takes note' of Sepp Blatter's attendance

    Federation Internationale de Football Association 'takes note' of Sepp Blatter's attendance

    The 82-year-old Blatter is serving a six-year ban from official football duties for financial misconduct during this 17-year rule. No charges have yet been brought and Blatter has repeatedly denied any wrongdoing.
  • Oil Falls on Spiraling US-China Trade Dispute, Rising Output

    Oil Falls on Spiraling US-China Trade Dispute, Rising Output

    After yearlong rise in oil and gasoline price, there's a call to control Oil price from rising too far and too fast. Russian Federation said the total increase should be as much 1.5 million barrels.
    Chelsea set to sign Juventus defender for £31 million

    Chelsea set to sign Juventus defender for £31 million

    Chelsea could have to pay £4.5m if they were to employ Sarri before July 1 but that figure would go up to £7m after that date. The coach is known to be a master tactician and would also work well within the structure of the club's transfer policy.
    France 1 - 0 Peru | 21 Jun 2018

    France 1 - 0 Peru | 21 Jun 2018

    France was successful in securing three points in its opening round of group play, picking up a 2-1 victory over Australia. Pedro Aquino rattled the crossbar for Peru with a long shot in the second half but France were comfortable winners.
  • Supreme Court’s sales-tax ruling could mean $200 million for IL

    Supreme Court’s sales-tax ruling could mean $200 million for IL

    For example, the popular electronics seller B&H only charges sales tax in NY and New Jersey, where it has a physical presence . While this ruling is beneficial to state governments, it stands to have a negative impact on retailers and consumers alike.
    European Union  to impose duties on United States  imports on Friday after Trump tariffs

    European Union to impose duties on United States imports on Friday after Trump tariffs

    It had previously registered the move with the World Trade Organization (WTO). In trade wars, there tend to many casualties and few winners.

    IGTV is Instagram's take on social video

    In a kind of TV and YouTube hybrid, the app will be organized by channels, which will just lead you to each creator's page. He added that IGTV is "built for how you actually use your phone , so videos are full screen and vertical".