Facebook Twitter Linkedin Youtube RSS
Eye of Dubai
Wednesday, May 23, 2018
Sign up for newsletter:
Advertise with us
℃ Dubai   
| Register | Login
Image Verification
Environment & Energy NEWS
Environment & Energy is sponsored by:
Posted on: Saturday 7 January, 2017 1:47 pm
Oil prices post gains on OPEC hopes, but doubts linger

Oil prices edged higher on Friday as output cuts by the Organization of the Petroleum Exporting Countries (OPEC) members met with lingering concern that other producers could try to shirk their share of planned decreases aimed at curbing global oversupply.

Brent crude futures, the benchmark for international oil prices, were trading at $57.20 per barrel at 1229 GMT, up 31 cents from the previous close.
In the US, West Texas Intermediate (WTI) crude futures were at $54.05 a barrel, 29 cents above their last settlement.
The contracts were largely flat on the week after days of choppy trading.
“There is a lot of volatility, or at least changes in direction,” ABN Amro senior energy economist Hans van Cleef said. “People think the long-term trend is up, but after a gain of a few dollars, they take profit.”
Production cuts by Saudi Arabia and signs that it plans further trims have helped buoy the market.
The Kingdom cut oil output in January by at least 486,000 barrels per day (bpd) to 10.058 million bpd, fully implementing an agreement by the OPEC and other producers to curb a global supply glut.
Saudi Aramco has started talks with customers globally on possible cuts of 3 percent to 7 percent in February crude loadings.
On Friday, a Kuwaiti oil official said that country had also reduced production in line with the deal, and there are also reports of supply cuts from Abu Dhabi.
Still, doubts remained that all producers would fully implement planned reductions.
“There will be some countries who will cheat...we expect zero compliance from Baghdad ... And we definitely do not expect the Kurds to join in, given that they are autonomous from the federal government,” Energy Aspects said in its 2017 oil market outlook, published this week.
Overall supply from OPEC in December fell only slightly to 34.18 million barrels per day (bpd) from a revised 34.38 million bpd in November, according to a Reuters survey this week based on shipping data and information from industry sources.
But OPEC was not the only factor; analysts pointed to a strong US dollar, which edged back from a 14-year high this week, and gains in US oil product inventories as holding them in a relatively narrow range.

Print this Article
comments powered by Disqus
Book Hotels
Our Sponsors
  • Emirates Airline
  • Saudi Arabian General Investment Authority
  • Alsorayai Group
  • Emaar
  • HP
  • Lomar
  • Emirates NBD
  • du
  • Dubai Chamber
  • Dubai Tourism
  • Riyadh Chamber of Commerce
Eye Of Dubai
Islamic Date Converter Close
Gregorian Calender
Month Day Year
Hijri/Islamic Calender
Month Day Year
Day of the Week:

World Time Close
Unit Converter Close
Kindly select the desired Values & Units:
Forgot Your Password Close
We will send an email to your inbox to clear things up
Username or Email
* Mandatory fields / Error alert
Track Shipments Online Close
Enter Aramex AWB number
Enter DHL AWB number
Enter Fedex AWB number
Enter TNT AWB number
Enter UPS AWB number
Daily Newspaper Close