Economy

Oil prices down on worries over OPEC deal

Oil prices down on worries over OPEC deal

The agreement in Vienna concluded with OPEC nations and independent producers of crude oil agreeing on a combined output cut of almost 1.8 million barrels per day (bpd) beginning this month, in order to control the global supply glut that brought prices to a 15-year low.

After OPEC agreed to curb its production by 1.2 million barrels per day (bpd) in November, and independent producers led by Russian Federation chose to join the deal, oil prices have steadied at above $54 per barrel, nearly double the January 2016 lows.

Brent crude March 2017 futures were up nearly 2.2 percent and stood at over $58 per barrel, while WTI February 2017 futures rose a similar amount to around $54.90 per barrel.

In addition to the price surge, Nigeria is also benefiting from the OPEC deal which excluded the country from the output cut against the backdrop of militancy activities which had forced its output down to as low as 1.5 million barrels per day as at the time of the OPEC output cut talks.

Investors will be watching OPEC closely to see whether the group's members keep their promises to reduce production.

Total volume traded was 20 percent below the 100-day average at 2:51 p.m.

Almost 7000 Iraqi civilians killed in 2016
However, people from the besieged west, which is still under the militants control, are increasingly attempting to escape. That had helped stem casualties, which the government does not report but sources said on some days reached a few dozen.

OPEC expects to balance the oil market in the first half of 2017, helping oil prices steady above USD55 a barrel.

Additional commitment to an OPEC production agreement and a decline in USA inventories pushed crude oil prices higher in early Thursday trading.

Fund managers accumulated a net long position equivalent to 796 million barrels in the three main futures and options contracts linked to Brent and West Texas Intermediate by December 13.

The U.S. Energy Information Administration said on Tuesday it expected domestic crude oil production for 2016 and 2017 to fall by less than previously expected.

Even if OPEC abides by its agreement and keeps output low, U.S. shale producers may keep global oil inventories high. WTI crude went past the $54 per barrel and $55 per barrels marks before hovering at just below $55 per barrel after an nearly 2.3-percent rally. As the WSJ first reported, instead of cutting its crude production by 4% as it "promised" it would do in the Vienna November 30 meeting, Iraq instead planned to increase crude-oil exports in January, according to government records, immediately raising questions about its commitment to the OPEC's landmark production agreement.

The OPEC agreement is often played down due to speculation about cheating by nations involved in the agreement and over concerns about increased production in countries that are not part of the agreement.


  • ISIS video claims PM Modi and others working against Muslim interests

    ISIS video claims PM Modi and others working against Muslim interests

    A senior USA military official, speaking on background last month, said that the Turks "hate that we support" the YPG. Ibrahim Kalin told broadcaster Kanal 24 that Turkish officials had notified the US government of their concerns.
    Christmas tree recycling through January  8

    Christmas tree recycling through January 8

    Fort Hood Family Housing will pick up real Christmas trees on regularly scheduled trash pickup days between January 9 and 13. Lethbridge residents can take advantage of the annual curbside Christmas Tree Collection scheduled for Saturday, Jan. 14.
    Venus Williams withdraws from ASB Classic with arm injury

    Venus Williams withdraws from ASB Classic with arm injury

    There were signs of frustration from Williams as the wind picked up and she struggled to put her first serve in play. Willilams is trying to be optimistic. "This is nearly not a great opportunity to assess your game to be honest".
  • Indonesia, Australia military co-operation on hold for 'technical reasons'

    Indonesia, Australia military co-operation on hold for 'technical reasons'

    The Indonesian Special Forces train regularly with the Australian Special Air Service Regiment, based at Campbell Barracks in Perth.
    Demonetisation: Last day to deposit scrapped notes

    Demonetisation: Last day to deposit scrapped notes

    Modi will seek to regain some of that goodwill when he makes a New Year's Eve address to the nation on Saturday. He concluded by asking the people to welcome the new year together for brighter future of the nation.

    Watch Jets Score Touchdown On Kickoff After Hilarious Bills Mistake

    The embarrassing play went down in the fourth quarter after the Jets' hit a 25-yard field goal to take a 23-3 lead. The kickoff found its way to a spot where no Buffalo player was and then started bouncing toward the goal line.
  • Highlight reel for Ohio State's Fiesta Bowl performance is a treat

    Highlight reel for Ohio State's Fiesta Bowl performance is a treat

    Alabama has won 26 consecutive games, including beating Clemson last January to claim its fourth national championship since 2009. On Scarbrough's 18-yard touchdown run to tie the game in the first quarter, four Huskies couldn't bring him down.
    Queen nearly  shot by guardsman during 3am stroll

    Queen nearly shot by guardsman during 3am stroll

    In 1982 Michael Fagan scaled the palace walls and even managed to access the Queen's bedroom before security were called. Now an ex-guardsman, the Queen's staffer revealed to pals the monarch responded: "That's quite all right".
    White supremacist Dylann Roof tells jury: There's nothing wrong with me

    White supremacist Dylann Roof tells jury: There's nothing wrong with me

    Williams said Roof targeted his victims because of the color of their skin and said he preyed upon their vulnerability. The government is expected to call more than 30 witnesses, mostly survivors and victims' family members, to testify.
  • United Kingdom  auto sales hit all time high in 2016 - 2.7 million cars

    United Kingdom auto sales hit all time high in 2016 - 2.7 million cars

    This eclipses the second-placed Vauxhall Corsa which finished the year on 77,110 registrations. Motorists buying a new vehicle in 2017 could find themselves paying more than they expect.
    Members of US Congress Are Overwhelmingly Christian, Study Finds

    Members of US Congress Are Overwhelmingly Christian, Study Finds

    By contrast, the portion of American adults who call themselves Christian fell to 71 percent in 2014, the Pew report said. Among the 242 Democrats, 28 identify as Jewish, three as Hindus, two as Muslims and one as a Unitarian Universalist.
    Nano Cells color LG's new Super UHD TVs

    Nano Cells color LG's new Super UHD TVs

    LG is keen this year, too, to bring attention to its HDR Effect feature, for "upconverting" standard dynamic range content to HDR. I'll bring you an update on how these TVs are shaping up as soon as I've had the chance to spend time with them at the CES.