GTB 737 banner Yudala banner

Oil market holds breath as OPEC holds crucial meeting

By News Express on 30/11/2016

Share on facebook Yahoo mail icon Gmail icon

Views: 796


Oil markets edged up in nervous trading on Wednesday ahead of the OPEC cartel’s meeting later in the day to thrash out an output cut and curb oversupply that has caused prices to more than halve since 2014.

International Brent crude was trading at $46.80 a barrel at 3.11am GMT, up 42c or 0.91% from its last close.

US West Texas Intermediate (WTI) crude was up 23c or 0.51% at $45.46 a barrel.

Traders said markets were jittery and prices could swing sharply in either direction, depending on developments at the Organisation of the Petroleum Exporting Countries (OPEC) meeting in Vienna.

Oil dropped nearly 4% the previous session over disputes between Saudi Arabia, Iran and Iraq regarding details of the planned cut.

Despite the disagreements, most analysts still expect some form of deal to emerge.

“We expect OPEC will reach an agreement…. We believe OPEC’s resolve in reaching an agreement remains strong,” ANZ bank said on Wednesday.

Analysts at Goldman Sachs, Barclays and ANZ agree oil prices would quickly rise above $50 a barrel should OPEC come to an agreement.

Without a deal, the consensus is for prices to fall to the low $40s.

Iran and Iraq are resisting pressure from Saudi Arabia to curtail production, making it hard for the group to reach a deal.

On Tuesday, tension rose after Iran wrote to OPEC saying it wanted Saudi Arabia to cut production by 1-million barrels a day, much more than Riyadh is willing to offer, OPEC sources who saw the letter told Reuters.

Iranian Oil Minister Bijan Zanganeh told reporters upon arrival at OPEC’s headquarters in Vienna that his country was not prepared to reduce output: “We will leave the level of production (where) we decided in Algeria.”

OPEC, which accounts for a third of global oil production, made a preliminary agreement in Algiers in September to cap output at about 32.5-33 million barrels a day — versus the current 33.64-million barrels a day — to prop up prices.

OPEC said it would exempt Iran, Libya and Nigeria from cuts as their output had been crimped by unrest and sanctions.

A potential compromise would be for OPEC to return to some form of member state production quota, instead of ordering outright cuts.

Although that would do nothing to end a global production overhang in which more crude is pumped than can be consumed, it could help balance the market in the long term as rising demand would gradually bring consumption to output levels. (Reuters)

•Photo shows OPEC General Secretary Mohammed Barkindo.

Source News Express

Posted 30/11/2016 12:14:15 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

 

You may also like...
Suspected militants blow up oil pipelines in Bayelsa...

Operation Mali-Must-Fall: Keshi marshals out same team that...

Ijaw leader Edwin Clark throws weight behind Buhari...

Buhari spends N20 million to treat ear infection...

You’ll become a political orphan if you join...

Davido arrested over friend’s death •The lie he...

Neymar out of World Cup as Brazil sets...

Call to boycott Anambra poll retrogressive, anti-Biafra –...

Royal father charms Pastor’s daughter? •She’s under certain...

Why the naira is getting stronger: CBN

University not for poor — VC

Breaking News: Ngige storms Election Tribunal, seeks order...

 

Latest News Minister identifies the biggest obstacles to 2019 elections Vigilante kills self while testing gun charm on his body Germany extends invitation to Nigerian start-ups Man bursts into newsroom, stabs top radio presenter in the neck Ezekwesili bags global democracy appointment Judge’s absence stalls FG’s $406.8m suit against Shell National Assembly summons Aviation Minister over airport concessioning How Delta expended N33.4bn Paris Club refund — Commissioner Lagos Assembly passes College of Nursing Bill N113m Scam: EFCC testifies against DESOPADEC’s Consultants Gambiademands immediate resignation of Togo’s President 5 Reasons No Nation Wants to Go to War with Israel

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (288,196 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (271,284 views) Shameless Genevieve Nnaji exposes breasts in public (218,718 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (184,230 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (179,710 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (162,554 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (140,954 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (128,842 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (123,912 views) Lagos plane crash: Journalist releases victims’ names (114,365 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (112,311 views) APC cries foul as PDP’s Fayose takes early lead in Ekiti governorship election (104,666 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (30) Business (2,734) Business Verdict (25) Columnists (758) Complaints & Requests (93) Enterprise & Opportunities (184) Entertainment (396) Features (497) Global Business Monitor (187) International (1,592) Interviews (134) Live Commentary (28) Love Matters (79) News (29,562) Opinion (828) Pidgin (8) Politics (3,996) Religion (645) Sports (1,340) Stock Watch (23) AMA & Al Jazeera Global Update

 

UBA mobile app

CBN Words on marble

 

 

#MonkeyPox outbreak

 

APO Group Partner

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!