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Saudi Arabia Discuss Extending Oil Supply Cuts

Crude oilThe price of oil contracts inched higher Monday morning. The Saudi oil minister discussed possibly extending of a pact to cut global oil supplies beyond March 2018. This was discussed between him and his Venezuelan and Kazakh counterparts.

The news of these discussions, which occurred Sunday, helped to offset the downward pressure on crude oil prices. There are investor worries that energy demand will be hit hard by Hurricane Irma which is now pounding the State of Florida.

The latest news, shows that hurricane Irma has now knocked out power to more than 3 million homes and businesses in Florida. The storm hit the Florida Keys by 8:00 am EST on Sunday. The storm has now weakened to a Category 2. It has maximum sustained winds of 177 kilometers per hour.

US WTI light sweet crude (WTI), for October delivery, rose 29 cents, or 0.6 percent, at $47.77. This contract had shed 3.3 percent on Friday.

The global benchmark, Brent crude, for November delivery, was rose 23 cents, or 0.4 percent, at $54.01 a barrel. This comes after settling down 1.3 percent on Friday.

OPEC Discuss Oil Supply Cuts

OPEC and other producers, including Russia, have currently agreed to reduce crude output by about 1.8 million barrels per day. This is in effect until next March and is n attempt to reduce global oil inventories in order support prices.

The Saudi energy ministry stated that Energy Minister Khalid al-Falih agreed, in principal, with his Kazakh counterpart that the option to extend the cuts would be considered over time.

Iran will reach an crude production rate of 4.5 million barrels per day within five years. Ali Kardor, managing director of the National Iranian Oil Company (NIOC), said in a statement on Sunday.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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