Saudi Arabia Cut Crude Exports in January After OPEC Agreement

The cuts came as prices tumbled below $50 a barrel for the first time this year, and anxious executives discussed rising USA rig counts at an industry meeting in Houston.

West Texas Intermediate for April delivery, which expires today, fell 56 cents to settle at US$48.22 a barrel on the New York Mercantile Exchange. Though some of the OPEC members have indicated their willingness to prolong the cuts, comments by Saudi Arabia and Russian Federation, world's largest crude producers and effectively leaders of the OPEC and non-OPEC blocs in the production restraint deals, carry far more weight. While OPEC won't decide until May whether to prolong the curbs, energy ministers including Russia's Alexander Novak will meet this weekend in Kuwait to discuss the deal's progress. An OPEC panel is scheduled to meet this month to review compliance with the current deal.

Despite thin Asian trading that resulted from a Japanese holiday, the dollar edged down against its primary trading partners, with the dollar index starting the week at 100.140.DXY, a 0.16 percent decline. Longs fell 8.9 percent to the lowest level since early January, and shorts doubled from the prior week to the highest since November.

Lower crude oil prices have a negative impact on oil and gas producers' earnings such as Noble Energy (NBL), Chevron (CVX), Northern Oil & Gas (NOG), and Triangle Petroleum (TPLM).

Crude oil prices could remain steady this week if buyers react to the IEA projections and the sellers continue to react to the global supply overhang.

On International Day of Happiness, Egypt Ranks 120 in World Happiness Report
South Sudan, Liberia, Guinea, Togo, Rwanda, Tanzania, Burundi and the Central African Republic were at the bottom. In the middle ranks were per capita GDP , freedom to make life choices and healthy life expectancy at birth.

Meanwhile, growing USA oil production and inventories weighed on sentiment, as investors braced for a fresh batch of US crude inventories data later this week while the number of active USA rigs rose for a ninth straight week. Many shale producers view $50 as a benchmark price for profitability.

"There is good, strong momentum to the downside", futures brokerage CMC Markets said in a note. Deutsche Bank AG predicted Thursday that the group will extend the cuts not only through the end of this year, but also through the end of 2018.

Oil rig pumpjacks operating in the Wilmington Field area, July 30, 2013 - Reuters pic NEW YORK, March 21 - Oil fell as a Libyan port is set to resume shipments and the U.S. drilling revival undermines the potential for Opec output curbs to rebalance the market.

"The shale boom is back", Norbert Ruecker, head of commodities research at Julius Baer, said.

Recommended News

  • Oil falls 1 percent as bullish bets fade with USA output rise

    This means that speculators last week cut more than 150,000 contracts betting on firmer oil prices, a record high. Beyond OPEC, oil production rose 90,000 bpd in February, as increasing US output offset declines elsewhere.
    Colorado wildfire forces hundreds of people to evacuate their homes

    Colorado wildfire forces hundreds of people to evacuate their homes

    The fire has burned just over 60 acres a couple of miles from the university town's main shopping and dining thoroughfare. Firefighters plan to monitor the perimeter of the 62-acre fire and focus on protecting structures overnight.

    Seres Therapeutics annual loss widens

    The average 12-month price target among brokerages that have issued ratings on the stock in the previous year is $23.20. ACI Worldwide, Inc. (NASDAQ:ACIW) quarterly performance is 24.48% while its year to date (YTD) performance is 25.51%.
  • Saddam Hussain Is Struggling to Find a Job

    Saddam Hussain Is Struggling to Find a Job

    While Hussain says he does not blame his grandfather, he feels that he is unjustly suffering for someone else's crimes. Saddam Hussein was a dictator blamed for atrocities on his subjects until toppled by the United States in 2003.
    Scotland bounce back with win over Russian Federation

    Scotland bounce back with win over Russian Federation

    Czech Republic, Russia, Scotland and defending champions Switzerland also remain unbeaten having each won their solitary outings today.
    Samsung Galaxy S8 colour options and price revealed

    Samsung Galaxy S8 colour options and price revealed

    However, it's important to note that Samsung and USA carriers generally price its phones a bit lower than the exchange rate. The Samsung Pay feature will use a combination of these features to be more full proof and less prone to hacking.
  • Bill Gates Tops World Rich List Again While Trump Falls 220 Spots

    Bill Gates Tops World Rich List Again While Trump Falls 220 Spots

    The rich are getting richer, and if you don't believe us just check out Forbes.com's new list of the world's billionaires. The combined fortunes of this year's billionaires totaled to $7.67 trillion, up from $6.48 trillion in 2016.
    Michail Antonio pulls out of England squad

    Michail Antonio pulls out of England squad

    Antonio was included Gareth Southgate's 23-man squad and was widely expected to make his global debut in one of the next two games.
    Here is everything you need to know about the Samsung Galaxy S8

    Here is everything you need to know about the Samsung Galaxy S8

    The connectivity aspects of the Galaxy C7 Pro include 4G LTE, USB Type-C port, dual-SIM card support, and other common features. Therefore if you are eager to see the power of this upcoming device then opinion polls can give you the idea about it.
  • Tillerson to skip meeting of North Atlantic Treaty Organisation foreign ministers

    In Beijing, Tillerson said the US and China should work together to get North Korea to take a "different course". However, some experts argue that stronger actions are not necessary at this time.

    Hedge Funds Reduced Their Bullish Bets on Crude Oil

    Falih notes that OPEC is committed to cutting supply as much as necessary until there's an uptrend in oil prices. Brent for May settlement slipped 14 cents to US$51.62 a barrel on the London-based ICE Futures Europe exchange.
    WWE WrestleMania 33: Is Bayley vs. Sasha Banks Inevitable After the Show?

    WWE WrestleMania 33: Is Bayley vs. Sasha Banks Inevitable After the Show?

    Nia Jax's inclusion in the match confirms the rumours that circulated insinuating that she would be included in the match. After Stephanie McMahon fired General Manager Mick Foley, a group of people told Foley goodbye as he was leaving.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.