Latest news with #PetroleumExportingCountries
International Business Times
3 days ago
- Business
- International Business Times
Oil Prices Rise Amid North American Supply Disruptions and OPEC+ Uncertainty
Oil prices edged up on Wednesday as the possibility of supply disruptions prompted by North America production losses provided some support amid expectations OPEC+ producers will stick to agreed output reductions. Brent crude rose 54 cents, or 0.8 percent, to $64.63 a barrel. U.S. West Texas Intermediate (WTI) rose 64 cents, or 0.9%, to $61.45 a barrel. There were several factors contributing to the rise in prices. A major development was the U.S. decision to halt Chevron from exporting Venezuelan crude oil. While Chevron can continue operations in Venezuela, it is now prohibited from exporting oil out of the country or expanding its activities. This move limits supply options for U.S. refiners seeking crude and adds pressure to the global market, which is already facing constraints. And in Canada, wildfires in Alberta led to brief shutdowns of oil and gas production facilities. The fires have forced evacuations from parts of oil operations and are helping to reduce output and tighten supply. The threat from the wildfires underscores the current exposure of the country's energy infrastructure to natural disaster. Behind all this, oil traders are navigating the swirling forces of the organization of the Petroleum Exporting Countries and its allied producer countries, collectively referred to as OPEC+. The group is supposed to meet this week. No immediate decision is expected at Wednesday's full-group meeting, though the broader coalition may hold another meeting on Saturday in a smaller format of just eight member nations to decide whether to boost production next month. OPEC+ will be under pressure to step up supply, industry analysts say. The demand picture is looking up, particularly with the summer driving season around the corner for several countries. Meanwhile, non-OPEC+ production has been stagnant in the first half of the year. Added to the Canadian supply risk, the cry for more production is rising. But some analysts are skeptical. Market analysts say the group is likely to raise production in July but may reconsider as the year goes on as the outlook for the world economy darkens and potential new supplies enter the market. There is also the unknown impact of geopolitics. Continuing strains between the U.S. and Iran have been keeping sentiment in check. If nuclear negotiations between the two countries falter, sanctions on Iranian oil exports would remain in a position to restrict global supply further. With all of these factors in consideration, oil markets continue to be volatile.
Zawya
14-05-2025
- Business
- Zawya
OPEC to issue May oil market report at 1200 GMT
The Organization of the Petroleum Exporting Countries will release its May monthly oil market report at 1200 GMT (1400 Vienna time) on Wednesday, OPEC said in an email. (Reporting by Alex Lawler, Editing by Louise Heavens)
Gulf Today
15-04-2025
- Business
- Gulf Today
UAE non-oil economy continues to exhibit healthy growth: Opec
The organisation of the Petroleum Exporting Countries (Opec) stressed that the UAE's non-oil economy continued to exhibit a healthy growth dynamic, with the most recent data and economic indicators highlighting a robust expansion. In its Monthly Oil Market Report issued today, Opec noted that the UAE is pushing ahead with initiatives to diversify the economy, with initiatives such as 'Operation 300bn', aiming to boost manufacturing, expand export markets, and attract foreign investment. The report said that the Abu Dhabi and Dubai governments will continue to provide support to their economies' diversification efforts. The authorities are introducing policies to encourage the development of new sectors, including the digital sector, fintech, creative industries, scientific innovation, new energy sectors, and education. It explained that strong performance in sectors like tourism, finance, and construction continues to support growth. The solid performance is highlighted by the UAE's high PMI, reaching 54 in March, compared with a level of 55 in February and January. During the week ending 31st March, total oil product stocks in Fujairah rose by 4.96 mb, week on week (WoW), to stand at 24.34 mb, according to data from FEDCom and S&P Global Commodity Insights. At this level, total oil stocks were 4.07 mb higher than at the same time a year ago. Opec lowered its forecast for global oil demand growth in 2025 to 1.30 million barrels per day and 1.28 million barrels per day in 2026. Opec cut its 2025 global oil demand growth forecast on Monday for the first time since December, citing the impact of data received for the first quarter and trade tariffs announced by the United States. The organisation of the Petroleum Exporting Countries, in a monthly report, said world oil demand would rise by 1.30 million barrels per day in 2025 and by 1.28 million bpd in 2026. Both forecasts are down 150,000 bpd from last month's figures. US President Donald Trump's trade tariffs as well as a plan for higher output by Opec+, which includes Opec and allies such as Russia, have put downward pressure on oil prices this month and raised concern about economic growth. In the report, Opec lowered its world economic growth forecast this year to 3.0% from 3.1% and reduced next year's to 3.1% from 3.2%. Last month, Opec said trade concerns would contribute to volatility but had kept forecasts steady, saying the global economy would adjust. 'The global economy showed a steady growth trend at the beginning of the year, however, recent trade-related dynamics have introduced higher uncertainty to the short-term global economic growth outlook,' Opec said in Monday's report. Oil prices maintained an earlier gain after the report was released, with Brent crude trading near $66 a barrel following US exclusions on some tariffs. Prices have still dropped over 10% so far this month. Opec's oil demand view is still at the higher end of industry forecasts and it expects oil use to keep rising for years, unlike the International Energy Agency, which sees demand peaking this decade as the world switches to cleaner fuels. The IEA is scheduled to update its oil demand forecasts on Tuesday. Opec's report also showed that crude production by the wider Opec+ fell in March by 37,000 bpd to 41.02 million bpd due in part to reductions by Nigeria and Iraq. The group is scheduled to raise output in April and again in May as part of a plan to unwind its most recent layer of oil output cuts, which were put in place to support the market. But the report also showed, ahead of the scheduled hikes, that Kazakhstan, which has persistently exceeded its Opec+ output target, increased production further in March by 37,000 bpd, breaching the restrictions again. The Central Asian country's production rose to 1.852 million bpd last month, above its Opec+ quota of 1.468 million bpd for January-March. The energy ministry said last Thursday that Kazakhstan exceeded its Opec+ quota in March but would fulfil its commitments in April and partially compensate for earlier overproduction, according to Interfax news agency. The organisation of the Petroleum Exporting Countries, in a monthly report, said world oil demand would rise by 1.30 million barrels per day in 2025 and by 1.28 million bpd in 2026. Both forecasts are down 150,000 bpd from last month's figures. US President Donald Trump's trade tariffs as well as a plan for higher output by Opec+, which includes Opec and allies such as Russia, have put downward pressure on oil prices this month and raised concern about economic growth. An industry source told Reuters on Monday that Kazakhstan's oil output fell in the first two weeks of April from the March average, but was still above the Opec+ quota.
Gulf Today
05-03-2025
- Business
- Gulf Today
Oil drops as Opec+ plans to raise output, US tariffs beat sentiment
Oil prices fell for a third session on Wednesday as plans by major producers to raise output in April combined with concerns US tariffs on Canada, Mexico and China will slow economic and fuel demand growth hammered investor sentiment. Brent futures eased 15 cents lower to $70.89 a barrel at 0200 GMT. In the previous session, the contract fell to as low as $69.75, its lowest since September 11, and settled at their lowest since that day as well. US West Texas Intermediate (WTI) crude fell 40 cents a barrel, or 0.6%, at $67.86 after settling at its lowest since December. Prices fell to as low as $66.77 in the previous session, the lowest since November 18. The 'Opec+ decision to start increasing production again is a materially bearish development, loosening markets at a time that US macro data are starting to soften,' analysts at Citi said in a note. The organisation of the Petroleum Exporting Countries and its allies including Russia, a group known as Opec+, decided on Monday to increase output for the first time since 2022. The group will make a small increase of 138,000 barrels per day from April, the first step in planned monthly increases to unwind its nearly 6 million bpd of cuts, equal to nearly 6% of global demand. A 25% tariff on all imports from Mexico, a 10% tariff on Canadian energy and a doubling of duties on Chinese goods to 20% came into effect on Tuesday. The Trump administration also imposed 25% tariffs on all other Canadian imports. US President Donald Trump's self-declared trade war is seen by economists as a recipe for fewer jobs, slower growth, and higher prices, which could kill demand. The lower economic growth will likely impact fuel consumption in the world's biggest oil consumer. US retail gasoline prices are set to climb in the coming weeks as the new tariffs raise the cost of energy imports, according to traders and analysts. The Trump administration also said on Tuesday it was ending a license that the US has granted to US oil producer Chevron since 2022 to operate in Venezuela and export its oil. US crude oil stocks fell by 1.46 million barrels in the week ended February 28, market sources said, citing American Petroleum Institute figures on Tuesday. Investors now await government data on US stockpiles, due on Wednesday. The dollar hit three-month lows on Wednesday as the U.S.' trade war with its partners escalated, while a major overhaul to German government borrowing triggered the biggest sell-off in the country's debt since the late 1990s. In addition to the cocktail of tariffs and a seismic shift in German fiscal policy, investors also scrutinised the start of China's annual sessions of its parliament, the National People's Congress, at which Beijing retained a goal of roughly 5% economic growth for 2025. The euro hit its highest in four months, while European stocks surged. The biggest casualties were longer-dated German government bonds, caught up in their worst one-day selloff in more than 25 years as yields ripped higher. Overnight, German political parties agreed to a 500 billion-euro ($534.75 billion) infrastructure fund and, crucially, an overhaul in borrowing limits that economists billed as 'a really big bazooka'. 'Last night Germany announced plans for one of the largest fiscal regime shifts in post-war history, perhaps with reunification 35 years ago being the only rival,' Deutsche Bank strategist Jim Reid said. 'Everything you thought you knew about Germany's economic prospects three months ago, or even three weeks ago, should be ripped up and you should start your analysis from fresh,' he said. German 30-year yields - the rate the government pays to borrow over the very long term - rose by almost a quarter of a percentage point in early trading, on track for their largest rise since October 1998. The 30-year bond yield was last up 20 basis points at 3.03%. 'It's a recognition that something has changed. Germany is the benchmark against which all these other markets are measured. And so this big transition in German fiscal policy is significant,' Dario Perkins, managing director, global macro at TS Lombard, said. 'We're a long way away from worrying about German fiscal problems. People have been pleading that Germany spends for the last 20 years.' Longer-dated yields elsewhere rose too, with French 30-year rates up 15 basis points at 4.0% and Italian 30-year bonds yielding 4.517%, up 17 bps. Europe's STOXX 600 jumped by more than 1.2% to record highs. The prospect of a meaningful increase in European spending on security has sent the region's defence stocks soaring this month. US tariffs on imports from Canada, Mexico and China went into effect on Tuesday, when President Donald Trump also delivered his State of the Union address, in which he touted his successes since taking office six weeks ago.
