PREETIVE STRIKE OPEC’s Next Meeting New Approach to Cuts !
OPEC’s Next Meeting May Unveil New Approach to Cuts
By Grant Smith
October 17, 2019, 7:01 PM EDT
As the clamor grows for OPEC to slash even more oil production, and the cartel vows to consider any necessary action, its next meeting could result in an unusual step: a preemptive supply cut.
The Organization of Petroleum Exporting Countries and its partners -- known as OPEC+ -- have reduced output this year to contain a glut created by faltering oil demand and surging U.S. shale supply. Amid forecasts of a new surplus next year, there’s a chorus of calls from Morgan Stanley to Commerzbank AG for the alliance to deepen the curbs when it meets in Vienna in December.
But in recent months global markets have grown tighter, removing any immediate need to act. If extra cutbacks are announced, it would mark a break with tradition for the cartel, which typically waits for a glut to emerge before responding.
“It would break the mold,” said Derek Brower, a director at consultant RS Energy Group. “OPEC makes policy reactively, not proactively.”
Depressed oil prices may compel the group to change its habits. Crude has slumped about 20% over the past six months to about $59 a barrel in London, below the levels most OPEC nations need to cover government spending. A renewed sell-off in 2020 would squeeze revenues even further.
‘Daunting’ Stockpiles
OPEC+, a collective of 24 producers that pumps half the world’s oil, confronts a “daunting” surplus in the first six months of 2020 of about 1.2 million barrels a day, according to the International Energy Agency. Demand is being eroded by the weakest global growth in a decade and the U.S.-China trade war, while supplies are swelling in the U.S. and elsewhere. As a result, the group is facing a “serious challenge” to defend prices, said Neil Atkinson, the agency’s head of oil markets.
OPEC+, a collective of 24 producers that pumps half the world’s oil, confronts a “daunting” surplus in the first six months of 2020 of about 1.2 million barrels a day, according to the International Energy Agency. Demand is being eroded by the weakest global growth in a decade and the U.S.-China trade war, while supplies are swelling in the U.S. and elsewhere. As a result, the group is facing a “serious challenge” to defend prices, said Neil Atkinson, the agency’s head of oil markets.
The coalition agreed to cut output by 1.2 million barrels a day this year, a reduction that has been compounded by a range of crises, from sanctions on Iran to a missile attack on Saudi Arabia’s oil-processing facilities. Nonetheless, traders and consultants from Gunvor Group Ltd. to Rystad Energy AS recommend a further cutback when OPEC+ meets on Dec. 5-6.
PREEMPTIVE STRIKE
https://www.bloomberg.com/amp/news/articles/2019-10-17/opec-s-next-meeting-may-unveil-new-approach-to-cuts-preemption?__twitter_impression=true
By Grant Smith
October 17, 2019, 7:01 PM EDT
As the clamor grows for OPEC to slash even more oil production, and the cartel vows to consider any necessary action, its next meeting could result in an unusual step: a preemptive supply cut.
The Organization of Petroleum Exporting Countries and its partners -- known as OPEC+ -- have reduced output this year to contain a glut created by faltering oil demand and surging U.S. shale supply. Amid forecasts of a new surplus next year, there’s a chorus of calls from Morgan Stanley to Commerzbank AG for the alliance to deepen the curbs when it meets in Vienna in December.
But in recent months global markets have grown tighter, removing any immediate need to act. If extra cutbacks are announced, it would mark a break with tradition for the cartel, which typically waits for a glut to emerge before responding.
“It would break the mold,” said Derek Brower, a director at consultant RS Energy Group. “OPEC makes policy reactively, not proactively.”
Depressed oil prices may compel the group to change its habits. Crude has slumped about 20% over the past six months to about $59 a barrel in London, below the levels most OPEC nations need to cover government spending. A renewed sell-off in 2020 would squeeze revenues even further.
‘Daunting’ Stockpiles
OPEC+, a collective of 24 producers that pumps half the world’s oil, confronts a “daunting” surplus in the first six months of 2020 of about 1.2 million barrels a day, according to the International Energy Agency. Demand is being eroded by the weakest global growth in a decade and the U.S.-China trade war, while supplies are swelling in the U.S. and elsewhere. As a result, the group is facing a “serious challenge” to defend prices, said Neil Atkinson, the agency’s head of oil markets.
OPEC+, a collective of 24 producers that pumps half the world’s oil, confronts a “daunting” surplus in the first six months of 2020 of about 1.2 million barrels a day, according to the International Energy Agency. Demand is being eroded by the weakest global growth in a decade and the U.S.-China trade war, while supplies are swelling in the U.S. and elsewhere. As a result, the group is facing a “serious challenge” to defend prices, said Neil Atkinson, the agency’s head of oil markets.
The coalition agreed to cut output by 1.2 million barrels a day this year, a reduction that has been compounded by a range of crises, from sanctions on Iran to a missile attack on Saudi Arabia’s oil-processing facilities. Nonetheless, traders and consultants from Gunvor Group Ltd. to Rystad Energy AS recommend a further cutback when OPEC+ meets on Dec. 5-6.
PREEMPTIVE STRIKE
https://www.bloomberg.com/amp/news/articles/2019-10-17/opec-s-next-meeting-may-unveil-new-approach-to-cuts-preemption?__twitter_impression=true
Redigert 21.01.2021 kl 02:52
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danmark1
18.10.2019 kl 10:59
651
Jeg tror, det er sandsynligt, at OPEC+ vil sænke yderligere. SA og flere andre er ikke tilfreds med en pris omkring de 60.
Redigert 21.01.2021 kl 02:52
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