Angola’s exit – following a 16-year tenure as an OPEC member – came as a result of a dispute over its production quota. Following the African nation’s departure OPEC now consists of 12 member nations. Now, the oil cartel is looking to implement output cuts in an effort to push oil prices upward. Over the past three months, oil prices have plummeted by almost 20%.

While Nigeria also took issue with OPEC+’s production quotas for 2024, they decided against taking any drastic steps against the organization in protest. It appears as if Nigeria resolved its issue with OPEC following its November 30 meeting.

The post OPEC Nations Remain Committed Following Angola’s Exit appeared first on theprimarymarket.com.

Previously scheduled for Sunday 26 November, members of OPEC+ delayed their meeting until Thursday, November 30, with the cartel giving no reason for the decision. At the meeting, Saudi Arabian and Russia, along with its fellow OPEC+ allies, were set to discuss changes to a deal that limits supply going into 2024.

“The upcoming meeting has been the key central focus for oil prices for now, with sentiment shrugging off the sharp build in U.S. crude inventories,” Jun Rong Yeap, a market strategist at IG observed. While oil broker PVM explained that oil cuts must be extended and deepened, the International Energy Agency’s (IEA) oil markets and industry division confirmed that the global oil market will see a slight surplus heading into 2024.

The post Oil Slumps 4% as OPEC+ Meeting Delayed appeared first on theprimarymarket.com.

Oil prices have fluctuated significantly over the past year, with benchmark Brent slumping to its lowest level since June 2021 at a little over $70 per barrel. In response, OPEC+ leaders moved to implement a production cut to drive prices upwards, with Brent now exceeding $88 per barrel.

Further output cuts are expected, with Russia revealing last week that it reached an agreement with its OPEC+ partners to implement further export reductions. A Bloomberg survey found that Saudi Arabia is highly likely to extend its 1 million barrel production cut into October.

The post Oil Industry Leaders Meet in Singapore to Discuss Turbulent Market appeared first on theprimarymarket.com.

Brent, the global benchmark, fell back below $76 per barrel following the conclusion of the 4th of July holiday that saw U.S. markets close. After the Saudi and Russian output cut announcements were made public, Morgan Stanley cut its fourth-quarter forecast for Brent from $75 per barrel to $70.

“We still model stock draws in 3Q but expect oil price softness to continue as the market’s focus shifts to 1H24 when balances look in surplus,” analysts from the investment banking company stated.

Investor confidence was partially restored after the energy minister of the UAE confirmed that his nation would not be implementing output cuts like their OPEC+ counterparts.

Crude prices have slumped this year, largely driven downward by China’s stalling economic recovery. Observers will await the upcoming OPEC+ meeting to gauge the direction of crude and Brent prices.

The post Oil Drops as Investors Weigh Opec+ Decision appeared first on theprimarymarket.com.

Saudi Arabia’s production will remain one million barrels per day lower as per this arrangement, adding to existing output curbs implemented by OPEC+. This reduction is expected to be extended into August and could potentially last longer.

In line with the Saudis’ decision, Russia will reduce its own oil exports by 500,000 barrels a day in August. The country has mostly kept in line with OPEC+’s supply cuts despite facing pressure to keep its sales afloat following the Ukraine invasion.

Oil futures rose soon after Saudi Arabia’s announcement, with Brent crude rising 0.9% to $76.12 per barrel. 

Expected to rally going into this year, oil prices instead shed 11% following a slump in market confidence over global economies as central banks continued to hike inflation rates in the fight against inflation.

The post Oil Rises Amid Russian and Saudi Price Cuts appeared first on theprimarymarket.com.

West Texas Intermediate set for August delivery fell to approximately $71 per barrel, while global benchmark Brent declined after losing 0.7% on Monday.

Following the Chinese central bank’s decision to reduce its interest rates last Tuesday, observers are waiting to see the extent to which the nation’s government will aid economic growth.

Supply will also be a major factor in driving oil prices, with the Organization of Petroleum Exporting Countries (OPEC) deciding to implement an output reduction in an effort to drive prices upwards.

Observers will also be eager to learn of the developments discussed in talks between Iraqi and Turkish officials on Monday. The conversation concerned a possible resumption of Iraqi oil flows through to the port of Ceyhan.

The post Oil Declines Amid Falling Chinese Outlook appeared first on theprimarymarket.com.

Saudi Arabia, a leader among the cartel’s members, has warned traders to avoid betting on lower oil prices. Russia, the leader of the non-member allies, has issued a contrasting statement that no reduction in output is expected.

OPEC+ previously cut output by 2 million barrels per day in October, thereby infuriating U.S. President Joe Biden as higher gasoline prices were caused. Another supply cut was imposed in April, this time a surprise cut of 1.16 million barrels per day.

After climbing as high as $87 per barrel, Brent crude has slumped to around $75 per barrel. U.S. crude has fallen below $70 per barrel during the same period.

James Swanston, Middle East and North Africa economist at Capital Economics has cautioned that the Saudi’s warning to traders does not necessarily signify an impending output cut. “Our expectation is that OPEC+ will stick with current output quotas,” Swanston commented. “There have been signs that the government may be readying to live with lower oil prices and running budget deficits.”

The post OPEC+ Considers Further Supply Cuts Amid Oil Price Decline appeared first on theprimarymarket.com.

Saudi Arabian Energy Minister Prince Abdulaziz bin Salman told short-sellers to “watch out” in an announcement on Tuesday evening. This warning comes just a week before the Organization of Petroleum Countries and its allies are slated to meet to discuss their output policy for the second half of the year.

Reacting to the Saudi energy minister’s caution, Stephen Brennock, an analyst at PVM Oil Associates Ltd, claimed that Salman’s warning is now dictating market movements. Speaking of OPEC, Brennoc added: “The producer group might have another surprise cut up its sleeve.”

The Saudi minister’s announcement is also being credited with offsetting the effects of the deadlocked U.S. debt ceiling talks, which have had an influence on oil futures as well as broader financial markets in recent days. House Speaker Kevin McCarthy revealed late on Tuesday that Republicans and Democrats are yet to reach an agreement ahead of the June 1 deadline.

The post Oil Embarks on Third Straight Daily Rise appeared first on theprimarymarket.com.

In a move that surprised markets, members of OPEC+ pledged to cut oil production by 1 million barrels per day starting next month. Markets expected the organization to hold output steady, particularly as it comes outside of OPEC+’s regular timetable to review the market’s demand and members’ supplies.

Following the announcement, Goldman Sachs Group Inc. lifted its forecasts for this year and the next while U.S. gasoline futures also surged. In what would typically be a quiet Asian trading session, thousands of futures were purchased.

Peter McNally, global sector lead for energy at Third Bridge, said that “by cutting now, OPEC+ moves to rebalance the market in front of the strongest seasonal period.”

The White House, on the other hand, disagreed with OPEC+’s decision, labeling it as ill-advised. The U.S. government added that it would work with producers and consumers to suppress the rise in gasoline prices.

The post Oil Surges By Highest Rate in a Year Following OPEC+ Output Cut appeared first on theprimarymarket.com.

Nasdaq 100 e-minis were down 84.5 points, or 0.64% on Monday morning while S&P 500 e-minis were down 4 points, or 0.10%. Dow e-minis were up 119 points, or 0.36%.

“It can be expected to have an upwards impact on headline and core CPI,” Stuart Cole, head macroeconomist at Equiti Capital said of the resulting oil price hike. Cole added that the Fed’s interest rates could remain higher for longer as a result.

Oil rose by 5.4% on Monday, with energy firms such as Exxon Mobil Corp and Chevron Corp gaining over 3% during premarket trading as a result.

Investors now await an address by Federal Reserve Board Governor Lisa Cook, expected to be delivered late on Monday, along with S&P Global and ISM manufacturing PMI data which is also set to be released later in the day. The U.S. jobs report will be released later in the week.

The post Nasdaq, S&P Futures Fall Following OPEC+ Output Cut appeared first on theprimarymarket.com.

Angola’s exit – following a 16-year tenure as an OPEC member – came as a result of a dispute over its production quota. Following the African nation’s departure OPEC now consists of 12 member nations. Now, the oil cartel is looking to implement output cuts in an effort to push oil prices upward. Over the past three months, oil prices have plummeted by almost 20%.

While Nigeria also took issue with OPEC+’s production quotas for 2024, they decided against taking any drastic steps against the organization in protest. It appears as if Nigeria resolved its issue with OPEC following its November 30 meeting.

The post OPEC Nations Remain Committed Following Angola’s Exit appeared first on theprimarymarket.com.

Previously scheduled for Sunday 26 November, members of OPEC+ delayed their meeting until Thursday, November 30, with the cartel giving no reason for the decision. At the meeting, Saudi Arabian and Russia, along with its fellow OPEC+ allies, were set to discuss changes to a deal that limits supply going into 2024.

“The upcoming meeting has been the key central focus for oil prices for now, with sentiment shrugging off the sharp build in U.S. crude inventories,” Jun Rong Yeap, a market strategist at IG observed. While oil broker PVM explained that oil cuts must be extended and deepened, the International Energy Agency’s (IEA) oil markets and industry division confirmed that the global oil market will see a slight surplus heading into 2024.

The post Oil Slumps 4% as OPEC+ Meeting Delayed appeared first on theprimarymarket.com.

Oil prices have fluctuated significantly over the past year, with benchmark Brent slumping to its lowest level since June 2021 at a little over $70 per barrel. In response, OPEC+ leaders moved to implement a production cut to drive prices upwards, with Brent now exceeding $88 per barrel.

Further output cuts are expected, with Russia revealing last week that it reached an agreement with its OPEC+ partners to implement further export reductions. A Bloomberg survey found that Saudi Arabia is highly likely to extend its 1 million barrel production cut into October.

The post Oil Industry Leaders Meet in Singapore to Discuss Turbulent Market appeared first on theprimarymarket.com.

Brent, the global benchmark, fell back below $76 per barrel following the conclusion of the 4th of July holiday that saw U.S. markets close. After the Saudi and Russian output cut announcements were made public, Morgan Stanley cut its fourth-quarter forecast for Brent from $75 per barrel to $70.

“We still model stock draws in 3Q but expect oil price softness to continue as the market’s focus shifts to 1H24 when balances look in surplus,” analysts from the investment banking company stated.

Investor confidence was partially restored after the energy minister of the UAE confirmed that his nation would not be implementing output cuts like their OPEC+ counterparts.

Crude prices have slumped this year, largely driven downward by China’s stalling economic recovery. Observers will await the upcoming OPEC+ meeting to gauge the direction of crude and Brent prices.

The post Oil Drops as Investors Weigh Opec+ Decision appeared first on theprimarymarket.com.

Saudi Arabia’s production will remain one million barrels per day lower as per this arrangement, adding to existing output curbs implemented by OPEC+. This reduction is expected to be extended into August and could potentially last longer.

In line with the Saudis’ decision, Russia will reduce its own oil exports by 500,000 barrels a day in August. The country has mostly kept in line with OPEC+’s supply cuts despite facing pressure to keep its sales afloat following the Ukraine invasion.

Oil futures rose soon after Saudi Arabia’s announcement, with Brent crude rising 0.9% to $76.12 per barrel. 

Expected to rally going into this year, oil prices instead shed 11% following a slump in market confidence over global economies as central banks continued to hike inflation rates in the fight against inflation.

The post Oil Rises Amid Russian and Saudi Price Cuts appeared first on theprimarymarket.com.

West Texas Intermediate set for August delivery fell to approximately $71 per barrel, while global benchmark Brent declined after losing 0.7% on Monday.

Following the Chinese central bank’s decision to reduce its interest rates last Tuesday, observers are waiting to see the extent to which the nation’s government will aid economic growth.

Supply will also be a major factor in driving oil prices, with the Organization of Petroleum Exporting Countries (OPEC) deciding to implement an output reduction in an effort to drive prices upwards.

Observers will also be eager to learn of the developments discussed in talks between Iraqi and Turkish officials on Monday. The conversation concerned a possible resumption of Iraqi oil flows through to the port of Ceyhan.

The post Oil Declines Amid Falling Chinese Outlook appeared first on theprimarymarket.com.

Saudi Arabia, a leader among the cartel’s members, has warned traders to avoid betting on lower oil prices. Russia, the leader of the non-member allies, has issued a contrasting statement that no reduction in output is expected.

OPEC+ previously cut output by 2 million barrels per day in October, thereby infuriating U.S. President Joe Biden as higher gasoline prices were caused. Another supply cut was imposed in April, this time a surprise cut of 1.16 million barrels per day.

After climbing as high as $87 per barrel, Brent crude has slumped to around $75 per barrel. U.S. crude has fallen below $70 per barrel during the same period.

James Swanston, Middle East and North Africa economist at Capital Economics has cautioned that the Saudi’s warning to traders does not necessarily signify an impending output cut. “Our expectation is that OPEC+ will stick with current output quotas,” Swanston commented. “There have been signs that the government may be readying to live with lower oil prices and running budget deficits.”

The post OPEC+ Considers Further Supply Cuts Amid Oil Price Decline appeared first on theprimarymarket.com.

Saudi Arabian Energy Minister Prince Abdulaziz bin Salman told short-sellers to “watch out” in an announcement on Tuesday evening. This warning comes just a week before the Organization of Petroleum Countries and its allies are slated to meet to discuss their output policy for the second half of the year.

Reacting to the Saudi energy minister’s caution, Stephen Brennock, an analyst at PVM Oil Associates Ltd, claimed that Salman’s warning is now dictating market movements. Speaking of OPEC, Brennoc added: “The producer group might have another surprise cut up its sleeve.”

The Saudi minister’s announcement is also being credited with offsetting the effects of the deadlocked U.S. debt ceiling talks, which have had an influence on oil futures as well as broader financial markets in recent days. House Speaker Kevin McCarthy revealed late on Tuesday that Republicans and Democrats are yet to reach an agreement ahead of the June 1 deadline.

The post Oil Embarks on Third Straight Daily Rise appeared first on theprimarymarket.com.

In a move that surprised markets, members of OPEC+ pledged to cut oil production by 1 million barrels per day starting next month. Markets expected the organization to hold output steady, particularly as it comes outside of OPEC+’s regular timetable to review the market’s demand and members’ supplies.

Following the announcement, Goldman Sachs Group Inc. lifted its forecasts for this year and the next while U.S. gasoline futures also surged. In what would typically be a quiet Asian trading session, thousands of futures were purchased.

Peter McNally, global sector lead for energy at Third Bridge, said that “by cutting now, OPEC+ moves to rebalance the market in front of the strongest seasonal period.”

The White House, on the other hand, disagreed with OPEC+’s decision, labeling it as ill-advised. The U.S. government added that it would work with producers and consumers to suppress the rise in gasoline prices.

The post Oil Surges By Highest Rate in a Year Following OPEC+ Output Cut appeared first on theprimarymarket.com.

Nasdaq 100 e-minis were down 84.5 points, or 0.64% on Monday morning while S&P 500 e-minis were down 4 points, or 0.10%. Dow e-minis were up 119 points, or 0.36%.

“It can be expected to have an upwards impact on headline and core CPI,” Stuart Cole, head macroeconomist at Equiti Capital said of the resulting oil price hike. Cole added that the Fed’s interest rates could remain higher for longer as a result.

Oil rose by 5.4% on Monday, with energy firms such as Exxon Mobil Corp and Chevron Corp gaining over 3% during premarket trading as a result.

Investors now await an address by Federal Reserve Board Governor Lisa Cook, expected to be delivered late on Monday, along with S&P Global and ISM manufacturing PMI data which is also set to be released later in the day. The U.S. jobs report will be released later in the week.

The post Nasdaq, S&P Futures Fall Following OPEC+ Output Cut appeared first on theprimarymarket.com.