Economy

Trump, OPEC, and the Oil Market's Razor Thin Spare Capacity

Trump, OPEC, and the Oil Market's Razor Thin Spare Capacity

The US-led sanctions are aimed at pressuring Iran to negotiate a follow-up agreement to halt its nuclear programme, following Trump's withdrawl from a 2015 nuclear deal agreed between Iran and six major powers.

REUTERS/Jonathan ErnstSaudi Arabia's King Salman bin Abdulaziz Al Saud (L) receives US President Donald Trump for the Arab Islamic American Summit in Riyadh, Saudi Arabia May 21, 2017.

"Our goal is to increase pressure on the Iranian regime by reducing to zero its revenue from crude oil sales", Hook, the State Department's director of policy and planning, told reporters. He has tweeted about the Organization of Petroleum Exporting Countries at least 63 times since 2011, repeatedly saying the group is "ripping us off" and that crude should cost no more than $25 a barrel.

The statement said the kingdom will coordinate with other producers.

Also on Thursday, data showed U.S. crude stockpiles rose unexpectedly last week by 1.2 million barrels.

Walmart boycott: Calls mount over 'Impeach Trump' items
Walmart, not long ago, was in trouble with liberals as well for a shirt it soldthat read "Rope". We have reached out to Walmart for comment, and will update this story with any reply.

Analysts are of the view that if the USA is successful at convincing most from buying Iranian oil, outages could rise to as high as 2 million barrels per day (bpd).

Barely a week after OPEC's decision to ramp up oil supplies, Trump surprised the world on Saturday by announcing a new side agreement with the Saudis to compensate for supply shortages from two crisis-hit producers, Iran and Venezuela.

Last week, Saudi Arabia was one of several countries that agreed to boost production by a combined 700,000 to one million barrels per day.

Reid said that he expected oil to stay around its current price, with a possible increase to $80 a barrel.

"Prices are likely to become more volatile over the coming months, caught between two narratives: Oversupply concerns and dwindling spare capacity/oil market tightness concerns", he said. "We are working to minimize disruptions to the global market, but we are confident there is sufficient global spare oil capacity".

Russian Federation stuns Spain on penalty kicks, advances at World Cup
The king heads FIFA's list of VIP guests for the round of 16 game, which also includes Russia's Prime Minister Dmitry Medvedev. The second day of the knockout phase starts with 2010 champions, Spain , facing the host country, Russia , at 4 p.m.

The impact on the tanker trade remains unclear as oil buyers could turn to regular sources such as Saudi Arabia for more barrels, or look further afield at long distance sources such as the US.

But the United States official, Brian Hook, also said that keeping prices stable in the absence of Iranian crude is also important.

Hook said that the USA was willing to work with nations to reduce their reliance on oil production and the Organization of Petroleum Exporting Countries (OPEC) has said they will increase production from other countries, like Saudi Arabia, in order to decrease pressure on oil markets.

"Further declines in USA crude oil inventories and the significant outage in Libyan oil supply are helping to keep a floor under the market", said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London.

China, India, Japan, and South Korea are the top customers of Iranian crude.

German government crisis: What are Merkel's options?
Her unpopular policy was a large reason why her party, the Christian Democratic Union, crashed and burned in last September's elections.


  • Martinez names star key to Belgium in Brazil showdown

    Martinez names star key to Belgium in Brazil showdown

    Against Brazil, it will not be about ball possession, but what you do with it. "I don't see that as a valid result". They have only gone out at this stage twice in that run (against France in 2006 and Netherlands in 2010).
    Police reach protester on the Statue of Liberty

    Police reach protester on the Statue of Liberty

    Earlier, several of their members were arrested after they unfurled a banner from the base of the statue that read "Abolish ICE". Walker said the other demonstrators had no idea the woman would make the ascent, which wasn't part of the planned protest .
    Mbappe now at Ronaldo, Messi and Neymar level says Balague

    Mbappe now at Ronaldo, Messi and Neymar level says Balague

    Diego Maradona reacts during the World Cup round of 16 match between France and Argentina at the Kazan Arena on June 30, 2018. Portugal were knocked out at the hands of Uruguay after Edinson Cavani's brace ensured a 2-1 passage to the quarter-finals.
  • 35 service points, 26 sets in a row at Wimbledon for Federer

    35 service points, 26 sets in a row at Wimbledon for Federer

    And speaking of Wimbledon greats, Serena will also be playing her third round match Friday against Mladenovic. It seemed to sting her into action, however, as she won five games in a row before claiming the second set.
    Thailand Soccer Team Rescue Is ‘Very Tricky’

    Thailand Soccer Team Rescue Is ‘Very Tricky’

    A Thai rescuer prepares oxygen tank for diving after the 12 boys and their soccer coach were found alive. In the meantime, the boys and their coach will now be given lots of supplies and medical attention.
    Chattanooga woman identified as victim in Bahamas boat explosion

    Chattanooga woman identified as victim in Bahamas boat explosion

    The other nine, including the Schaffer family, were injured. "Maleka would be I guess what I call a shooting star", Grimes said. She was on vacation with her sister, Brooke , mother, Stacey , and stepfather, Paul Bender , at the time of the explosion.
  • Gas prices are up and OPEC ‘doing little to help’

    Gas prices are up and OPEC ‘doing little to help’

    Trump's tweet triggered reaction from Iran , a founding member of OPEC, whose oil exports have been targeted by U.S. sanctions. The U.S. benchmark West Texas Intermediate was $73.22 a barrel, down 1.24 percent.
    Tropical Depression forms in the Atlantic

    Tropical Depression forms in the Atlantic

    Shear is now high ahead of the storm over the eastern Caribbean (see Fig. 2), which should prevent significant strengthening. The Atlantic hurricane season typically begins to peak in August and September and will end on November 30.

    Miles Teller joins Tom Cruise’s ‘Top Gun: Maverick’ as Goose’s son

    Val Kilmer will reprise his role as Tom "Iceman" Kazansky in the sequel, which is set to hit Australian cinemas on July 11, 2019. You should, in other words, expect to experience a fair amount of whiplash as you read through our future reporting on this one.
  • Gareth Southgate: Young England side 'hungry' to go as far as possible

    Gareth Southgate: Young England side 'hungry' to go as far as possible

    Both of the latter nations have raised the World Cup trophy at least once; France most recently in 1998. "It's a night when I knew we were going to get over the line".
    SpaceX launches a floating 'AI brain' to the ISS

    SpaceX launches a floating 'AI brain' to the ISS

    With reassurances like that, the six crew members must be pretty excited to meet CIMON. "It will come to him when he speaks". The aim is to investigate the extent to which robot-human collaboration is possible and efficient in a space environment.
    United States  oil touches $75 amid fears Iran will block Middle East shipments

    United States oil touches $75 amid fears Iran will block Middle East shipments

    An oil tanker is loaded at a Saudi Aramco refinery and terminal in Ras Tanura, Saudi Arabia, in May. The president also had tough words for other United States allies.