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

22 June, 2018, 16:18 | Author: Natasha Holloway
  • Oil pumps are seen in Lake Maracaibo in Lagunillas Ciudad Ojeda in the state of Zulia Venezuela

By contrast, Saudi Arabia, the cartel's biggest producer and a fierce regional rival to Iran, could have the room to increase output more — and make more money — to make up for the shortfall in countries like Iran.

"It would seem that an aggregate increase in production for OPEC+ of between 500,000 bpd and 1 million bpd is the range that is being considered", Tchilinguirian said.

The need to increase production emerged as Venezuela's production is in free fall and Iranian production is threatened by the re-imposition of USA sanctions.

One might think that President Donald Trump would embrace a move that pressures Iran, but the president took to Twitter to voice his displeasure, saying, "Oil prices are too high, OPEC is at it again". It would be a real increase in production from those countries with spare capacity including Saudi Arabia, Russia and the United Arab Emirates.

Three OPEC sources told Reuters a technical panel - the organisation's economic commission - met on Monday to review the market outlook and present it to member countries' oil ministers later in the week. Indeed, the single largest factor that could push prices down going forward would be a sizable increase in OPEC plus supply.

Oil's market report for the month of June by EIA and Opec showing a stable demand growth while Non-Opec supply growth increased a bit. These numbers suggest that USA and handful of other non-OPEC countries will more than meet global demand. The risk is that Saudi Arabia will choose to go it alone, boosting output. Shortly after, since the USA shale production wasn't able to offset the production cuts that OPEC and non-OPEC nations made, oil prices rose significantly through 2017 up to 2018 and that made the Trump administration anxious about the effect of higher prices on Trump's political stance.

Oil prices have fallen due to the direct result of the market recalibrating to the likelihood of higher OPEC plus production in the second half of the year.

That was coming, says Hummels after Germany defeat
The only time the ball was in midfield was when it was passing through to either end, with the teams combining for 18 shots. Commentators anxious that family tensions could distract the players from their goal of winning World Cup matches.

"This escalation of the trade war is unsafe for oil prices", said Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA in Singapore. "The whole world has to stand against these arrogant attitudes - and will". If agreed, that would be smaller than the 1.5 million-barrel-a-day quota increase that Russian Federation has proposed.

Underscoring how hard the discussion about a production increase will be, Zanganeh said that Trump's comments have cast doubt on the prospect of a deal.

Iran had been expected to oppose any rise in crude output, but it has now signaled it may support a small increase.

The oil ministers of the OPEC cartel are arriving in Vienna to discuss this week whether to increase production of crude oil and help ease the price of global energy.

Tankers waiting to load more than 24 million barrels of crude, nearly as much as state producer PDVSA shipped in April, are sitting off the Opec member's main oil port.

Non-OPEC members including Russia, Oman and Mexico also agreed to cut 558,000 bpd off their production to stabilise the market. Well, we have to wait until the price reaches the 50 SMA, don't we?

Recommended:

  • Argentina's Jorge Sampaoli pleads with fans to lay off Lionel Messi

    Argentina's Jorge Sampaoli pleads with fans to lay off Lionel Messi

    Despite the criticism and the pressure, Cuccittini told "Diario de Mariana" that Messi seems relaxed, calm, and confident. Lionel Messi has all the support of his Argentina team-mates and they will "keep by his side", according to Paulo Dybala.
    Two injured after woman goes on rampage in supermarket with boxcutter

    Two injured after woman goes on rampage in supermarket with boxcutter

    The attacker, who was dressed in black and wore a veil, was subdued by the supermarket staff and later handed over to the police. A sense of edginess has been with France since a murderous series of killings in 2015 in the name of the Islamic State group.
    2018-19 season fixtures to be announced

    2018-19 season fixtures to be announced

    Manager Jurgen Klopp has done an impressive job of reestablishing Liverpool as a top-four Premier League side once again. The Champions League draw is due to take place in August after the Premier League season kicks off.
  • Peru vs France LIVE on SBS

    Peru vs France LIVE on SBS

    France were unconvincing in their 2-1 win over Australia on Saturday but can book their spot in the last 16 if they beat Peru . But he stressed Peru , appearing at the World Cup for the first time in 36 years, would not be overawed.
    'Minor explosion' reported at London tube station

    'Minor explosion' reported at London tube station

    A suspicious package was reportedly found at the scene, and cops are now investigating that as well. British Transport Police said: "We are now dealing with an incident at #Southgate tube station".
    Osako's header lifts Japan past 10-man Colombia

    Osako's header lifts Japan past 10-man Colombia

    Japan became the first team to beat a South American team with a 2-1 win over Colombia at the Mordovia Arena in Saransk. Wilmar Barrios 6 - Brought on in the first half to add solidity after Colombia went down to ten men, which he did.
  • Banned Blatter arrives in Russian Federation  for World Cup

    Banned Blatter arrives in Russian Federation for World Cup

    Speaking to Sky Sports News, Blatter said: "I think England, or Ireland, they deserve to organise the World Cup". England bid for this year's tournament but lost out to Russian Federation despite being one of the favourites.

    Instagram Launches Youtube Competitor IGTV for Longform Videos

    There are no ads on IGTV today, but that would be a "reasonable place to end up", Instagram CEO Kevin Systrom said at the event. Up until now, video uploads were limited to just one minute on Instagram, but IGTV extends that limit to an hour.
    Meghan Markle’s father reveals his warning to Prince Harry

    Meghan Markle’s father reveals his warning to Prince Harry

    He said give Donald Trump a chance, I sort of disagreed with that". "That was his politics, I have my politics, so". Thomas explained that he was ultimately unable to attend the wedding due to his health.
  • Maurizio Sarri Tells Chelsea To Chase Gonzalo Higuain

    Maurizio Sarri Tells Chelsea To Chase Gonzalo Higuain

    I hope he can win something with Chelsea . "When a person like this comes to a new club, he needs time". At Napoli , we enjoyed so much the play and the supporters enjoyed so much too.
    The Best Tweets Responding to Homeland Security Secretary Kirstjen Nielsen's Lies. Period

    The Best Tweets Responding to Homeland Security Secretary Kirstjen Nielsen's Lies. Period

    As a result, the Department of Homeland Security has published a supposed fact check of its family separation policy . On Monday, speaking to the nation's sheriffs at a gathering in New Orleans, again defended the zero tolerance policy.
    North Korea's Kim Jong-un in China for two-day visit

    North Korea's Kim Jong-un in China for two-day visit

    President Donald Trump held a summit in Singapore , the first of its kind between a North Korean leader and an American president. Kim told Xi he hoped to work with China and other parties to push the peace process, Chinese state television said.


Popular

Time Magazine Cover Features Trump And Migrant Toddler
Moore further said that he really wanted to "pick the girl up" at that moment but he couldn't. The magazine refuted his story, saying that's not how it chooses people.

U.S. prepares for return of war dead remains from North Korea
Beijing and Washington have held three rounds of high-level trade talks since early May but have failed to address Mr. About 7,700 U.S. military personnel remain unaccounted from the 1950-1953 Korean War, U.S. military data shows.

Star misses Brazil World Cup training
Xherdan Shaqiri and Granit Xhaka were brilliant against Brazil and have a strong chance at scoring a couple of times against the Serbs.

Melania Trump makes surprise visit to US-Mexico border
A spokesman for Mrs Trump shot down claims the jacket was meant to make a statement, saying: 'It's a jacket. The pair of statements from the first lady amounted to an unusual public intervention by Mrs.

Google’s iMessage competitor just got a tiny bit better
Hot on the heels of an accidental leak , the official Google Podcasts app has made its way to the Google Play Store . Google says the changes are rolling out starting today, but you know what that means: server-side rollouts.

USA court backs states over web sales tax
South Dakota has estimated that it could take in up to $50 million a year in additional revenue with these taxes being collected. In response to the ruling, the stocks of several internet retailers, including Amazon, eBay and Wayfair , all dropped.

China accuses Trump of ‘blackmail after new tariffs threat
On April 3, the White House released a list of 1,300 Chinese products worth $50 billion that could be hit with potential tariffs. Then China followed suit, unveiling 25 per cent duties on US$ 50 billion in United States imports - matching the U.S. rates.

Anxiety hit us hard, says Brazil coach Tite after Switzerland draw
We've done a lot of preparation, which has been building up for a long time . "They have two lines of defense and they do it very well".

Magnitude 6.1 quake in Japan's Osaka area kills three, stops factories
Prime Minister Shinzo Abe said authorities were assessing damage and that their top priority was the safety of residents. Two men in their 80s, one from Osaka's Higashiyodogawa Ward, and another from the city of Ibaraki also perished.

President Trump's former campaign chairman going to jail
Kilimnik, whom US authorities suspect of having ties to Russian intelligence, served as Manafort's point man in Ukraine. But the president also stuck up for him , suggesting that Manafort's alleged crimes are too old to prosecute.