Fidelity bank banner Bayelsa State banner
Oil prices rise on forecasts for growing demand, OPEC concerns

By Scott DiSavino on 06/03/2018

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 497

•OPEC Secretary General Mohammed Barkindo
•OPEC Secretary General Mohammed Barkindo

Crude prices rose on Monday along with the U.S. stock market on forecasts for robust oil demand growth and concerns that output from OPEC producers would grow at a much slower pace in coming years.

Brent futures gained $1.17, or 1.8 percent, to settle at $65.54 a barrel, while U.S. West Texas Intermediate crude futures gained $1.32, or 2.2 percent, to settle at $62.57.

Oil prices, which were flat earlier in the day, started rising along with U.S. stocks. The S&P 500 Index <.SPX> was up over 1 percent shortly before the close of trading.

“Today’s spike in the equities was a large driver behind today’s (oil) price recovery,” Jim Ritterbusch, president of Chicago-based energy advisory firm Ritterbusch & Associates, said in a report.

Analysts also said prices were propped up by “bullish comments” from ministers from the Organization of the Petroleum Exporting Countries and other global industry players at the CERAWeek conference in Houston, the largest energy conference, on Monday.

Abhishek Kumar, senior energy analyst at Interfax Energy’s Global Gas Analytics in London, said comments about “Venezuela’s deteriorating oil-production profile, together with prospects for strong compliance with the OPEC-led output-cut agreement, (were) supportive of oil prices.”

Ecuador’s oil minister Carlos Perez said Venezuela’s oil production was running 1.5 million barrels per day (bpd) short of its historic output. Speaking on the sidelines of the CERAWeek conference, he noted it was something that the country must address itself.

OPEC Secretary General Mohammad Barkindo and other OPEC officials are expected to hold a dinner on Monday with U.S. shale firms on the sidelines of the conference.

Suhail Mohamed Al Mazrouei, the United Arab Emirates oil minister and OPEC’s current president, said on Sunday that the cartel had not discussed rolling over production cuts next year.

“We feel there is still market overhang,” Al Mazrouei said, adding, “there are no talks about (extending cuts into 2019) at this stage.”

OPEC and other major producers agreed to cut combined output by about 1.8 million bpd to drain a global oil glut. The agreement began in January 2017 and runs through the end of this year.

Also on Monday, the International Energy Agency, which advises industrialised nations on energy policies, said it expected annual global oil demand growth to average a fairly robust 1.1 percent to 2023 and noted that OPEC would fail to significantly increase its production capacity.

To meet growing demand, IEA said U.S. shale oil output was set to surge over the next five years, stealing market share from OPEC producers and moving the United States, once the world’s top oil importer, closer to self sufficiency. (Reuters)

Source News Express

Posted 06/03/2018 1:36:53 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25 minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
4 bag 5 years jail term for fake...

NDIC postpones workshop for PMB operators

LCCI seeks partnership with LASG in tourism, hospitality...

CBN boosts forex supply with $195m

Obaseki inaugurates 12 Permanent Secretaries, says no room...

Shell, JV partners spend N21bn on community development...

RIGHTSView: Nigeria and the dearth of constructive politics...

Obiano donates N10m to Ose-Okwodu fire disaster victims...

INEC releases new timetable for Dino Melaye’s recall...

Shake-up in NIMASA; senior Management staff redeployed

RIGHTSView: You Be Thief, I No Be Thief:...

Okowa reconstitutes Delta Tenders Board, charges members on...

 

Latest News Bomb scare in Ebonyi •Umahi summons emergency security meeting World Cup: Nigerian, other Asylum seekers enter Finland illegally from Russia Pastor pleads guilty to criminal breach of trust, cheating, remanded in prison NERC suspends IBEDC board of directors over 6bn loan 192 drown as tourist ferry sinks Saraki addresses Russian Parliament; Seeks stronger security, economic cooperation Probe your 2015 campaign fund, PDP tells Buhari 75 per cent of sickle cell births in Nigeria don’t see their 5th birthday – Group PDP Campaign Fund: Absence of defendants stalls arraignment of Ex-Kebbi Governor APC National Convention: Muiz Banire’s camp loses out again in battle for Lagos delegates Kwara tertiary institutions begin indefinite strike Traders lose property worth N150 million to fire in Ekiti

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (352,184 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (351,480 views) Shameless Genevieve Nnaji exposes breasts in public (280,109 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (229,995 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (209,013 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (208,652 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (181,740 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (163,824 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (153,876 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (148,546 views) Lagos plane crash: Journalist releases victims’ names (143,781 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (135,625 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (50) Business & Economy (3,256) Business Verdict (44) Columnists (868) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (505) Features (607) Global Business Monitor (283) International (2,040) Interview (154) Live Commentary (28) Love Matters (123) News (36,345) Opinion (1,003) Pidgin (10) Politics (5,289) Religion (770) Sports (1,552) Stock Watch (30) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Portugal v Spain 2018

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement