Oil ETFs Brush Off OPEC Output Promises

Oil ETFs Brush Off OPEC Output Promises

The "Vienna group", which includes Russian Federation, agreed a landmark deal previous year to cut production by 1.8m barrels a day, which saw the oil price recover to $50 to $55 a barrel in recent months.

Oil prices tanked early Thursday after OPEC reached an agreement to cap oil production for another nine months at the same level that couldn't fix the oversupplied oil market this year.

By 1150 GMT (7:50 a.m. ET), Brent crude had fallen 1.3 percent to around $53 per barrel as market bulls were disappointed OPEC would not deepen the cuts or extend them by as long as 12 months. "That is why I am more supportive of the nine months' agenda".

The kingdom has allied with Russian Federation in vowing to rebalance the market after the halving of oil prices since 2014 decimated the budgets of oil-dependent producers and upended the global energy industry. Its production reduction of 1.2 million bpd was made based on October 2016 output of around 31 million bpd, excluding Nigeria and Libya. After weeks of often tense negotiations, OPEC ministers gathering in Vienna expressed renewed optimism about salvaging a deal to cut oil production and prop up global prices.

"And to this end we have a technical committee working on this every month", he told CNBC in Vienna when asked about the possibility of deeper cuts to production.

Early on May 25, Brent was trading 1.4% lower at $53.21 a barrel with the West Texas Intermediate (WTI) benchmark edging down by almost the same amount to $50.57 per barrel.

GSP ready for Memorial Day travel period
Law enforcement holds the event every year as there is an uptick in boating and vehicle accidents around this time. In 2016, 26 people were injured in auto accidents during the Memorial Day weekend.

Most OPEC ministers, delegates and the market see a nine-month extension, instead of the initially suggested six months, as the base-case scenario but some countries including Russian Federation have suggested an unusually long duration of 12 months.

Oil prices have risen less than OPEC hoped for from last year's levels.

OPEC president, Khalid al-Falih who is Saudi Arabia's Energy minister, on Thursday officially welcomed Equatorial Guinea's Mines and Hydrocarbons minister, Gabriel Obiang to group at the 172nd OPEC meeting in Vienna.

OPEC produces a third of the world's oil. "We have seen a substantial drawdown in inventories that will be accelerated", Falih said.

OPEC has a self-imposed goal of bringing stocks down from a record high of 3 billion barrels to their five-year average of 2.7 billion. Consultant IHS Markit said Russian Federation, the largest country outside the cartel to join the cuts, also earned more.

Six months after forming an unprecedented coalition and delivering output reductions that exceeded expectations, resurgent production from United States shale fields has meant oil inventories remain well above targeted levels. "We will use this platform to advance the interests of all African oil and gas explorers and producers and all Opec members".

Related Articles

  • LeBron James eclipses Michael Jordan's scoring record

    The Golden State Warriors get reacquainted with the Western Conference championship trophy after sweeping the Spurs this week. Avery Bradley scored 23 points in this event, Gerald Greene had 14, while Al Horford once again failed, with only 8 points.
    Future iPhones will have Apple's own AI chip

    Future iPhones will have Apple's own AI chip

    Bloomberg said that Apple "plans to eventually integrate the chip into many of its devices, including the iPhone and iPad". Apple engineers are purportedly racing to catch up with Amazon and Alphabet.
    Samsung Unintentionally Confirms Galaxy J7 (2017) and Galaxy J5 (2017)

    Samsung Unintentionally Confirms Galaxy J7 (2017) and Galaxy J5 (2017)

    There is a support for microSD cards up to 256GB in size.The dual-SIM smartphone runs Android 6.0 Marshmallow out-of-the-box. However, the newly launched variants come with an improvement on that particular front, packing in 32GB of storage.
  • Union Environment Ministry bans sale of cattle for slaughter

    Union Environment Ministry bans sale of cattle for slaughter

    The rules, to be implemented in next three months, introduce lot of paper work for cow traders who are mostly poor and illiterate. The present notification has been issued by the Environment Ministry under the Prevention of Cruelty to Animals Act.
    Infiltration Attempt Backed By Pak Army Stopped In Kashmir's Uri

    Infiltration Attempt Backed By Pak Army Stopped In Kashmir's Uri

    He said Army has intensified its vigil along the LoC after BAT action and many infiltration attempts by the Pakistani terrorists. There is no evidence that the UNMOGIP military observers were targeted by the gunfire.

    Jared Kushner discussed setting up secret communications with Russian ambassador

    It was known that Jared Kushner had meetings with a banker from Moscow and the Russian ambassador in December 2016. Trump has denied any collusion, calling the probe "the greatest witch hunt " in American political history.
  • No blame for LeBron after Celtics no-show, says Cavaliers coach Lue

    No blame for LeBron after Celtics no-show, says Cavaliers coach Lue

    You could have made SportsCenter's Top 10 last night with 10 plays from Irving's Game 4 theatrics and not even batted an eyelash. The Celtics' scrappy win in Game 3 comes in stark contrast to the club's lopsided losses in the first two games of the series.
    John Terry could retire after leaving Chelsea in summer

    John Terry could retire after leaving Chelsea in summer

    Should Terry keep on playing? "I've learnt an bad lot of things sitting there and watching the group, how things have panned out". He has also helped them win five FA Cups, three League Cups, the Champions League and the Europa League.
    New Orleans Mayor's Speech on Confederate Monuments That's Going Viral

    New Orleans Mayor's Speech on Confederate Monuments That's Going Viral

    Democratic Mayor Mitch Landrieu's comments came Monday in response to a Facebook post by Mississippi Republican state Rep. Oliver's post about lynching drew broad, bipartisan condemnation.
  • Mkhitaryan Wouldn't Have Scored Last Night If It Wasn't For Ander Herrera

    Mkhitaryan Wouldn't Have Scored Last Night If It Wasn't For Ander Herrera

    The Spain global told the club's official website that three traits stood out for him when describing the Old Trafford faithful ahead of United's mammoth Europa League final against Dutch giants Ajax .
    Celtics star Isaiah Thomas unsure if he'll need hip surgery

    Celtics star Isaiah Thomas unsure if he'll need hip surgery

    It eventually prompted James to bolt Cleveland to join Wade, with Chris Bosh ditching the Toronto Raptors to also play for Miami. After allowing the Celtics to seize the early momentum in Game 4 , the Cavs barely gave them the chance in Game 5.
    Iran must stop supporting 'terrorists', Trump says in Israel

    Iran must stop supporting 'terrorists', Trump says in Israel

    He has called an Israeli-Palestinian peace agreement " the ultimate deal ", but has been vague about what form it should take. Protests were held in cities across the West Bank and in Gaza City yesterday against Mr Trump's visit to the region.