Oil prices jump over 3% on rising demand and production cuts

CALGARY — Oil prices surged on Monday following a deal between OPEC and non-OPEC members to curb production, triggering a jump in share prices of ailing Canadian oil and gas companies. Prices for West Texas Intermediate rose more than three per cent Monday to US$53 as of 2:30 p.m. ET, its highest level in roughly 18 months. Prices for Brent crude also rose more than three per cent to US$55.

CALGARY — A report published Tuesday disputed the renewed optimism being felt among high-cost producers such as Canada’s oilsands, saying OPEC’s deal to cut output is only a short-term boon for oil prices. In its monthly oil market report, the Paris-based International Energy Agency reiterated that the recent production cut between OPEC and non-OPEC members is a six-month agreement that could easily be revised in mid-2017.

MUMBAI: Oil cartel Opec's decision to cut production from next month may lead to a 5-8 per cent spike in retail prices of fuel over the next three-four months and massively boost the margins of state-run refiners, says a report. A Crisil report said the price of petrol may rise 5-8 per cent and that of diesel by 6-8 per cent over the next 3-4 months following the production cut and the resultant spike in crude prices.

By Tarun Satsangi Recovery of crude oil prices from $42 per barrel’s vicinity in July once again confirms that prices are likely to stay in $42-$56 range for some more time. Strong demand from the US and China, falling US crude oil inventories and soft dollar have paved the way for recovery in July, along with much-hyped some Opec members’ meeting with Russia, which ended with no solution on curbing soaring production.

Oil prices reversed gains to trade down today on concerns that the cutting of ties with Qatar by top crude exporter Saudi Arabia and other Arab states could hamper a global deal to reduce oil production. Saudi Arabia, the United Arab Emirates, Egypt and Bahrain closed transport links with top liquefied natural gas (LNG) and condensate shipper Qatar, accusing it of supporting extremism and undermining regional stability.

LONDON — Oil prices slid on Wednesday to extend falls from the previous session, as a big increase in U.S. crude inventories and a slump in Chinese demand implied that global oil markets remain oversupplied despite OPEC-led efforts to cut output. International Brent crude futures were trading at US$54.69 per barrel at 1045 GMT, down 36 cents from their previous close. U.S. West Texas Intermediate (WTI) crude was at US$51.69 a barrel, down 48 cents.

LONDON — Oil prices recovered a little on Friday after dropping to their lowest in more than three months, pressured by heavy oversupply despite OPEC-led production cuts. Brent crude oil was up 30 cents at $52.49 a barrel by 1200 GMT, after falling 1.7 percent on Thursday and 5 percent the day before in its biggest percentage decline in a year.

Wolf Richter   www.wolfstreet.com   www.amazon.com/author/wolfrichter “We don’t want to lose our share in the market,” Kuwait Oil Minister Ali al-Omair said on Thursday. OPEC had to maintain production despite the plunge in price since last summer, he said, underscoring Saudi Arabia’s position. OPEC would not cut production to goose prices. It would not let the American fracking boom off the hook.