OPEC+ announces surprise oil output cuts
Last edited Sun Apr 2, 2023, 08:58 PM - Edit history (2)
Source: Reuters
DUBAI, April 2 (Reuters) - Saudi Arabia and other OPEC+ oil producers on Sunday announced further oil output cuts of around 1.16 million barrels per day, in a surprise move that analysts said would cause an immediate rise in prices and the United States called inadvisable. The pledges bring the total volume of cuts by OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other allies, to 3.66 million bpd according to Reuters calculations, equal to 3.7% of global demand.
Sunday's development comes a day before a virtual meeting of an OPEC+ ministerial panel, which includes Saudi Arabia and Russia, and which had been expected to stick to 2 million bpd of cuts already in place until the end of 2023. Oil prices last month fell towards $70 a barrel, the lowest in 15 months, on concern that a global banking crisis would hit demand. Still, further action by OPEC+ to support the market was not expected after sources downplayed this prospect and crude recovered towards $80.
The latest reductions could lift oil prices by $10 per barrel, the head of investment firm Pickering Energy Partners said on Sunday, while oil broker PVM said it expected an immediate jump once trading starts after the weekend. "I expect the market to open several dollars higher ... possibly as much as $3," said PVM's Tamas Varga. "The step is unreservedly bullish."
Top OPEC producer Saudi Arabia said it would cut output by 500,000 bpd. The Saudi energy ministry said the kingdom's voluntary reduction was a precautionary measure aimed at supporting the stability of the oil market. "OPEC is taking pre-emptive steps in case of any possible demand reduction," Amrita Sen, founder and director of Energy Aspects, said. Last October, OPEC+ had agreed to an output cut of 2 million bpd from November until the end of the year, a move that angered Washington as tighter supply boosts oil prices.
Read more: https://www.reuters.com/business/energy/sarabia-other-opec-producers-announce-voluntary-oil-output-cuts-2023-04-02/
Article updated.
Previous headline -
Original article -
Oil prices last month fell towards $70 a barrel, the lowest in 15 months, on concern that a global banking crisis would hit demand. Still, further action by OPEC+ to support the market was not expected after sources downplayed this prospect and crude recovered towards $80. The latest reductions could lift oil prices by $10 per barrel, the head of investment firm Pickering Energy Partners said on Sunday.
Sunday's pledges bring the total volume of cuts by the Organization of the Petroleum Exporting Countries, Russia and other allies to 3.66 million bpd according to Reuters calculations, equal to 3.7% of global demand.
"OPEC is taking pre-emptive steps in case of any possible demand reduction," Amrita Sen, founder and director of Energy Aspects, said on Sunday. Last October, OPEC+ had agreed to an output cut of 2 million bpd from November until the end of the year, a move that angered Washington as tighter supply boosts oil prices.
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I had caught an intraday snapshot at the time of that OP -
It eventually settled at just under a dollar higher at the close ($67.61)-
The Biden administration had intended to start buying to restock the SPR although some of the earlier-announced releases/sales had apparently been called off so they have to recalculate (plus the holding facilities apparently require some much needed maintenance). Additionally per that linked article, some of the sales proceeds have been redirected to funding budget items.
The bigger issue is that the price at the pump is more directly related to what the gasoline refiners & distributors are charging vs what the price per bbl of crude is.
and rising, yuma AZ (armpit of the desert SW and yes, I'm embarrassed to live here and moving).
Operation Install red don Again appears to be ramping up.
Stock Market Watch is generally posted the late afternoon prior to every NYSE-open day in the Economy Group . Look for it around 530 PM ET.
along with similar graphs for the Dow, the dollar index, Euro, Pound, and 24 hour graphs for the Euro, Yen, Canadian$, silver, gold,
No.
The #2 & #3 states by population (TX FL) have RED trifectas as do #7 & #8 (OH, GA). Of the top 10 by population, there are only 4 with (D) trifectas (CA, NY, IL, & MI, where MI is barely one) -
Texas — 30,345,487
Florida — 22,359,251
New York — 20,448,194
Pennsylvania — 13,092,796
Illinois — 12,807,072
Ohio — 11,878,330
Georgia — 11,019,186
North Carolina — 10,710,558
Michigan — 10,135,438
PA is almost there but (D)s don't control the state Senate and NC has a (D) governor but all-(R) state legislature.
Technically, the U.S, has pretty much become "energy independent" and most times pumping or able to pump out more than Saudi.
(from here - https://www.forbes.com/sites/rrapier/2019/07/14/ten-countries-that-dominate-fossil-fuel-production/?sh=34d8072f5b13)
