saudi arabia comes to rescue of oil markets but sentiment remains fragile
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Saudi Arabia comes to rescue of oil markets, but sentiment remains fragile

Arab Today, arab today

Arab Today, arab today Saudi Arabia comes to rescue of oil markets, but sentiment remains fragile

Brent crude traded at $51.76 per barrel, after falling more than 10 per
DUBAI - Arab Today

Last week’s comments from Saudi Arabia’s Energy and Industry Minister Khalid Al Falih on the extension of the six-month output cut may continue to sooth frayed nerves, especially among traders who are still reeling from falling oil prices, but analysts say positive sentiment still remains fragile.

On Friday, Brent crude traded at $51.76 per barrel, after falling more than 10 per cent from the recent high of $57 per barrel. The drop was triggered by rising US oil inventories and shale output.

“The soothing comments from Saudi Arabia and the first, small drop in US oil inventories this year helped stop crude oil’s aggressive price correction,” said Ole Hansen, head of commodity strategy at Saxo Bank.

Al Falih said a deal to cut oil output by the Organisation of the Petroleum Exporting Countries (Opec) could be extended if inventories remain above average.

In November, Opec and some non-Opec producers agreed to cut production from January 1 to reduce record stocks of global crude oil, but the deal has been dampened by data showing persistently rising US stockpiles.

“But the sentiment remains fragile at this stage, with Opec potentially being forced to extend current production cuts beyond six months to achieve its goal of balancing the market,” Hansen said.

“An extension of the deal would require Opec and non-Opec producers to agree. There have been signs of frustration from Saudi Arabia related to slow compliance from Russia and Iraq. The question remains how a deal would survive for a full 12 months given the signs of unease after just 2-1/2 months,” Hansen added.

Analysts feel that shale production need to monitored carefully.

“The current prices are sufficient to support increased activity. However, reliable models of increased rig count and corresponding production predict a modest increase and is, likely to be offset by an extension of production discipline from the Opec producers,” Vaqar Zuberi, head of hedge funds at Mirabaud Asset Management said.

US drillers added oil rigs for a ninth week in a row, extending a recovery that is expected to boost shale production by the most in six-months in April.

Drillers added 14 oil rigs in the week to March 17, bringing the total count up to 631, the most since September 2015, energy services firm Baker Hughes Inc said.

Meanwhile, futures positioning showed that recent rout pushed many speculators to bail out of long positions. The US Commodity Futures Trading Commission said Friday that net long positions in the crude futures market fell by more than 86,000 contracts, the biggest one-week reduction on record

source : gulfnews

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

saudi arabia comes to rescue of oil markets but sentiment remains fragile saudi arabia comes to rescue of oil markets but sentiment remains fragile

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

saudi arabia comes to rescue of oil markets but sentiment remains fragile saudi arabia comes to rescue of oil markets but sentiment remains fragile

 



GMT 14:30 2017 Sunday ,22 October

Abe coalition wins resounding victory in Japan vote

GMT 09:44 2017 Tuesday ,17 October

Morocco arrests 11 suspects linked to ISIS

GMT 13:09 2015 Tuesday ,09 June

Slaven Bilic returns to West Ham as manager

GMT 16:04 2017 Saturday ,30 September

Got a yacht? Proposed French tax break makes waves

GMT 13:06 2016 Saturday ,31 December

Syrian passport trade becomes unlikely cash cow

GMT 04:47 2017 Wednesday ,30 August

Mark Zuckerberg welcomes second daughter in Facebook

GMT 00:59 2014 Saturday ,07 June

January 19 - February 17

GMT 10:53 2017 Wednesday ,05 July

AU Summit gives priority to youth empowerment

GMT 17:26 2017 Wednesday ,15 February

Russian jets in ‘unsafe’ encounters with destroyer

GMT 17:53 2017 Wednesday ,25 October

Erdogan: Turkey ready to give Iraq full support

GMT 14:05 2017 Thursday ,23 November

Actor Ahmed Ezz appreciates Hind Sabry

GMT 16:04 2017 Wednesday ,14 June

Sadara expands its suite of specialty chemicals

GMT 01:01 2017 Monday ,06 February

Garcia wraps up dominant win at Dubai Desert Classic

GMT 17:39 2018 Sunday ,09 September

President of Abkhazia, concludes visit to Syria
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday