OPEC cuts

Are We Ready For OPEC’s Largest Output Cut Ever?

  • OPEC+ will cut oil production by 2 million barrels per day amid looming demand concerns.
  • The output cuts are expected to keep a floor on the price of oil.

‘We’re going to see $65 before we see $100 ‘ in WTI, reports Yahoo.

Background

OPEC+ has decided to cut oil production by 2 million barrels per day due to the imminent demand problems while also looking at the ongoing tension between the West and Russia over the war in Ukraine.

The output cut will be the largest since the start of the pandemic...

https://mfame.guru/are-we-ready-for-opecs-largest-output-cut-ever/

Why Supertankers Are Losing Almost $7,000 a Day?

  • Daily earnings slumped to the lowest since at least 2017.
  • Rates hit by OPEC production cuts and an oversupply of vessels.

Supertanker’s loss deepened to $6,779 a day amid OPEC cuts, writes Alex Longley for an article published in Bloomberg.

What is the reason?

With too many vessels to haul fuel, losses for supertankers on a benchmark Middle East-to-China route deepened to $6,779 a day on Tuesday. 

Weakest earnings

That’s the weakest earnings since at least 2017 and effectively means vessel owners...

https://mfame.guru/why-supertankers-are-losing-almost-7000-a-day/

Crude Market Sector To Disappoint In Q4

The traditionally strong northern hemisphere winter period in the crude oil tankers market looks set to disappoint, reports S&P Global Platts.

“A growing divide between rising short-term fleet supply and limited cargo availability, restricted by OPEC+ production cuts and a slower demand recovery for crude, has impacted the sector negatively and is likely to continue throughout the seasonal winter period,” CEO Hugo De Stoop said in a quarterly results statement.

Weak markets to roll over to Q4

That...

https://mfame.guru/crude-market-sector-to-disappoint-in-q4/

Will OPEC+ Production Cut Support Market Rebalancing?

  • Swift and bold OPEC+ cuts revive premiums in Asia’s physical oil market.
  • Sale of two Russia’s ESPO crude cargoes for July loading at a premium of $2.50-$3 a barrel to the Dubai benchmark.
  • Exxon Mobil Corp (NYSE:XOM). for Middle Eastern grades, sold Upper Zakum for July loading at a premium of $1.30-$1.50 a barrel.
  • Discount for Qatar’s medium-sour variety Al-Shaheen also narrowed more than 80% month-on-month for shipments.
  • Brent oil’s six-month contango narrowed sharply to $2.76 a barrel,...

https://mfame.guru/will-opec-production-cut-support-market-rebalancing/

An OPEC+ Country Forsee Deadlock Due To Cut in Oil Production!

  • Iraq, OPEC’s second largest oil producer, has instructed its biggest company, Basra Oil Co. (BOC), to cut output from May.
  • It is a part of its efforts to reduce its output by 1 million bpd, or 1% of global supply.
  • But it has yet to agree an action plan with other oil companies such as BP BP.L, Exxon XOM.N, Eni ENI.MI or Lukoil LKOH.MM, which operate the biggest fields in the country.

Ahmed Rasheed, Alex Lawler and Ahmad Ghaddar write for Nasdaq about Iraq’s difficulties  to fully implement an...

https://mfame.guru/an-opec-country-forsee-deadlock-due-to-cut-in-oil-production/

Coronavirus Causes the Biggest OPEC Cuts Since 2008 Recession!

In a major development, last thursday OPEC pushed for a bigger-than-expected oil output cut to support prices that have been hit by the coronavirus outbreak, effectively presenting its non-OPEC partners with an ultimatum to back the move or face a price collapse. reports Reuters.

New Cuts Proposal To Be Limited?

OPEC’s proposal to curb supplies by an extra 1.5 million barrels per day (bpd) until the end of 2020 was a surprise, given the group was expected to propose cuts of 1 million bpd and,...

http://mfame.guru/coronavirus-causes-the-biggest-opec-cuts-since-2008-recession/

Oil Prices Rise Amid Broad Market Rally, OPEC Supply Cuts

As per an Asian Age report, the oil market is in a turmoil with prices rising high amidst supply cuts and broad market rally. Here’s an insight into the situation at hand.

The Oil Market Scenario
  • Oil prices rose on March 12, lifted by healthy demand and output cuts led by producer group OPEC.
  • A rally in broader financial markets also supported crude futures, although analysts still warned of risks to the global economy.
  • US West Texas Intermediate (WTI) crude oil futures were at USD56.97 per...

http://mfame.guru/oil-prices-rise-amid-broad-market-rally-opec-supply-cuts/