Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Oil settles flat as unease builds ahead of OPEC meeting

    Oil settles flat as unease builds ahead of OPEC meeting

    September 23, 2017
    Share
    Facebook Twitter LinkedIn WhatsApp
    *OPEC.

    23 September 2017, New York — Oil prices settled nearly flat on Thursday, the eve of a meeting of major oil-producing countries in Vienna to discuss whether they will extend production limits that have helped reduce the global crude glut.

    Ministers from the Organization of the Petroleum Exporting Countries, Russia and other producers meet on Friday. They will discuss a possible extension of 1.8 million barrels per day (bpd) of supply cuts to support prices and will consider monitoring exports to assess compliance.

    While many analysts expect an extension of the deal beyond next March, many also said prices have risen high enough to tempt countries to boost production beyond agreed levels.

    “Compliance looks to be a bit of an issue” if prices rise much from current levels, said John Kilduff, a partner at Again Capital LLC in New York.

    U.S. crude futures dipped 14 cents, or 0.3 percent, to settle at $50.55 a barrel. Brent crude futures rose 14 cents, or 0.3 percent, to end at $56.43 a barrel.

    Kilduff noted that oil prices have surged more than 15 percent over the last three months as the production cuts, along with strong growth in energy demand, have tightened the global crude market.

    “I don’t think it’s a sure thing they extend the deal at this meeting anyway,” Kilduff said.

    “Russia took a very long time to get to the compliance levels they were supposed to get to” in the output cut agreement, said Tariq Zahir, a trader with Tyche Capital Advisors in New York. “It wouldn’t surprise me to see them cheat a little bit as we get to the fourth quarter.”

    He said OPEC’s output cuts have boosted prices enough to encourage higher production elsewhere. U.S. shale production, especially, has been growing to record highs.

    Hurricanes in the Gulf of Mexico have pushed up crude inventories as some U.S. refineries have been shut by flooding.

    U.S. crude production reached 9.51 million bpd last week, up from 8.78 million bpd after Hurricane Harvey hit the U.S. Gulf late August. C-OUT-T-EIA

    Rising U.S. production is “a reminder to the market that OPEC has a significant problem on its hands from the continued rise in shale output,” Again Capital’s Kilduff said.

    Front-month Brent futures have risen sharply in recent months, much more than forwarding prices. This has pushed the price curve for oil futures from contango, signifying an oversupplied market, to backwardation, where the back months are cheaper than the front-month contract, indicating a tighter market.<0#LCO:>

    Brent’s backwardation initially confined to the contracts nearest expiry, now extends throughout the whole of next year.

    *Dave Gregorio; Christopher Johnson, Henning Gloystein; Editing: Marguerita Choy & Alexander Smith – Reuters

    Related News

    Angola’s Block 17 partners sign license extension

    Tinubu pardons Ken Saro-Wiwa, confers national honours on Ogoni Nine

    NCDMB Executive Secretary becomes member of APPO Board

    E-book
    Resilience Exhibition

    Latest News

    LASG approves seven dedicated truck parks for Lekki Port axis

    June 13, 2025

    NCDMB Executive Secretary joins AEW 2025 amid focus on enhancing local capacity

    June 13, 2025

    AfDB to provide $184.1m for Africa’s largest solar energy and battery storage project

    June 13, 2025

    NSC seeks closer collaboration with Police to boost port enforcement

    June 13, 2025

    Can the African Energy Bank transform the continent’s refining and downstream future?

    June 13, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.