Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
 | 
Last updated 3 hours, 41 minutes ago
Printer Friendly Version | TGT@Twitter | RSS Feed |
HOME LOCAL MIDEAST ASIA WORLD BUSINESS SPORT OPINION WRITERS
Oil surges as Saudi Arabia trims some Asia supplies
January 12, 2017
 Print    Send to Friend

LONDON: Oil prices rose for the first time in three days on Wednesday, following news of Saudi supply cuts to Asia, but persistent doubt over output reductions and signs of rising shipments from other producers kept gains in check. Brent crude futures were up 41 cents at $54.05 a barrel by 1133 GMT, while US West Texas Intermediate crude futures were up 39 cents at $51.21 a barrel. Brent has surrendered nearly 40 per cent of the gains made between late November and early January.

Analysts, however, said the slide was unlikely to become more aggressive, given the likelihood of Saudi Arabia and its Gulf neighbours at least sticking to their pledge to cut output.

“Few envision that Brent crude at sub-$50 a barrel is a viable price (in the first half of 2017) amid Opec production cuts tightening up the market,” SEB commodities strategist Bjarne Schieldrop said. Whether “last night’s low of $53.58/barrel turns out to be the low point remains to be seen.

However, we do think that buying in the territory between the current price of $53.88/b and down to $50/b is probably as good as it gets for buyers in H1.” Saudi Arabia, the world’s top oil exporter, has told some of its Asian customers that it will reduce their crude supplies slightly in February.

But there is still plenty of oil to fill the gaps left by the Organization of the Petroleum Exporting Countries.

North American drilling is on the rise, while European and Chinese traders are shipping a record 22 million barrels of crude from the North Sea and Azerbaijan to Asia this month.

There is still doubt among many market watchers over whether the planned cuts will be enough to rebalance a market that has been oversupplied for the past two years.

“Traders continued to fret about rising US supply and compliance by Opec to agreed-upon production cuts,” ANZ bank said.

The US Energy Information Administration (EIA) said on Tuesday that crude production in the United States this year would rise by 110,000 barrels per day to 9 million bpd.

Another concern is high US crude stockpiles, with the EIA scheduled to release its latest figures on Wednesday.

Reuters

Add this page to your favorite Social Bookmarking websites
Comments
 
Post a comment
 
Name:
Country:
City:
Email:
Comment:
 
    
    
Related Stories
Saudi Aramco to invest $7b in Malaysia oil refinery
KUALA LUMPUR: Malaysia’s Prime Minister Najib Razak announced on Monday that Saudi Arabia’s state oil company Saudi Aramco will invest $7 billion into an oil refinery and..
Oil producers achieve 86% conformity to output cut
VIENNA: Opec and non-Opec producers have achieved a conformity level of 86 per cent and are on the on the right track towards full conformity with their adjustments in pr..
Abu Dhabi, S.Arabia non-oil trade at Dhs17b
ABU DHABI: The total value of non-oil trade between Abu Dhabi and Saudi Arabia reached Dhs17 billion in 11 months during 2016, based on statistics that focussed mainly on..
Oil prices rise after report shows drop in US stocks
LONDON: Oil prices rose more than $1 a barrel on Thursday after US data showed a surprise decline in inventories, suggesting that a global glut may be ending after moves..
Oil rises on signs of widespread Opec deal
LONDON: Oil prices rose about $1 on Friday after reports that Opec members delivered more than 90 per cent of the output cuts they pledged in a landmark deal that came i..
FRONTPAGE
 
GALLERY
 
PANORAMA
 
TIME OUT
 
SPORT
 
 
Advertise | Copyright