By December 13, 2018 0 Comments Read More →

Oil slips again amid doubts that OPEC+ curbs will avert surplus

Oil fell for a second day as the International Energy Agency said its too early to tell whether output cuts by OPEC and its allies will prevent a surplus, echoing a similar outlook by the producer group itself.

Futures in New York slipped 0.5 percent after sliding 1 percent in the previous session. While the production cutbacks announced last week “may go some way towards restoring balance to the world market,” there’s still potential for “significant oversupply,” the IEA said in a report. Analysis from OPEC published Wednesday indicated the curbs may need to be deepened in the second half.

“The market is grappling with different uncertainties,” said Norbert Ruecker, head of macro and commodity research at Julius Baer Group Ltd. in Zurich.

Crude’s still in a bear market after reaching a four-year high in October as investors remain worried over supply and demand. Record American output, which is expected to boom to more than 12 million barrels a day in 2019, is threatening to overwhelm the market. The U.S. has also allowed some nations to temporarily buy Iranian oil despite the implementation of sanctions, while the unity of the Organization of Petroleum Exporting Countries is at risk.

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The Louisiana Oil & Gas Association (known before 2006 as LIOGA) was organized in 1992 to represent the Independent and service sectors of the oil and gas industry in Louisiana; this representation includes exploration, production and oilfield services. Our primary goal is to provide our industry with a working environment that will enhance the industry. LOGA services its membership by creating incentives for Louisiana’s oil & gas industry, warding off tax increases, changing existing burdensome regulations, and educating the public and government of the importance of the oil and gas industry in the state of Louisiana.

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