Oil price

The cuts have a number of consequences - as well as higher fuel prices, there is concern about the effect on inflation and wider concerns about those who ...

"The oil price rises can be expected to increase the cost of production and transportation, reduce consumers' purchasing power, disrupt supply chains, and lead to higher inflation expectations. "Markets are aware that if the pressure continues, central banks will need to extend or strengthen their interest-rate hiking cycles, the expectations of which will need to be repriced." "It's a big deal because of the way oil prices work," he said. However, even though the production cut accounts for only a small amount of the world's daily usage, the impact on prices could be big, he added. Kevin Book, managing director of Clearview Energy Partners LLC, said that it could take as much as a year for the cuts to take effect. Brent crude, the international oil benchmark, was up 5.5% by 9am on Monday to $84.28 per barrel after it was announced that production would be cut by 1.15 million barrels per day from May until the end of the year.

The cuts immediately pushed prices higher and were expected to boost gas prices, adding to strains in countries where high fuel prices are a heavy burden.

[markets](https://fortune.com/company/nugget-market/) were mixed. The runs have pushed investors to cast harsher scrutiny on banks globally in the hunt for seemingly weak links. For the Nasdaq, big leaps for technology stocks drove a gain of 16.8% for the quarter, its best since the surge out of the coronavirus-caused crash in the spring of 2020. That’s helped to prop up the S&P 500, where Big Tech stocks play an outsized role because of their massive size. A slowdown in inflation could give the Federal Reserve more leeway to take it easier on interest rates. dollar rose to 133.60 Japanese yen from 133.28 yen late Friday. The headline measure of the “Tankan” showed positive sentiment falling to 1 from 7 in December, the worse quarterly result since since December 2020. Shares rose in Taiwan but edged lower in Bangkok. It rose $1.30 to $75.67 per barrel on Friday, ahead of the weekend meeting where members of the so-called OPEC+ group of oil exporting countries decided on the cuts, which are in addition to a reduction announced last October Australia’s S&P/ASX 200 advanced 0.6% to 7,223.00. Higher oil prices also will complicate the efforts by central banks to benchmark crude oil rose $3.91 to $79.58 per barrel, or 5.1%, in electronic trading on the New York Mercantile Exchange.

Oil prices surged on Monday, posting the biggest daily rise in nearly a year, after a surprise announcement by OPEC+ to cut more production jolted markets.

"These cuts may be signaling that OPEC+ believes that there are enough recessionary indicators in the market ... (and) will further tighten the oil market for the rest of the year and could push prices above $100 per barrel". Register for free to Reuters and know the full story [unadvisable](/business/energy/us-sees-opec-output-cuts-unadvisable-2023-04-02/) and some analysts questioned OPEC+'s rationale for the extra production cut. [Goldman Sachs](/business/energy/goldman-sachs-raises-brent-oil-price-forecasts-after-opecs-surprise-output-cuts-2023-04-02/) lowered its end-2023 production forecast for OPEC+ by 1.1 million bpd and raised its Brent price forecasts to $95 and $100 a barrel for 2023 and 2024, respectively, it said in a note. The pledges bring the total volume of cuts by OPEC+ to 3.66 million bpd according to Reuters calculations, equal to 3.7% of global demand.

Oil prices jumped on Monday and Goldman Sachs raised its year-end forecast for Brent crude after Opec+ nations announced surprise production cuts of more ...

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Oil prices spiked Monday after OPEC+ producers unexpectedly announced that they would cut output. Brent crude, the global benchmark, jumped 5.33% to $84.15 ...

The move was announced by Russian Deputy Prime Minister Alexander Novak, as cited by Russia’s state-run news agency TASS. They increased their price forecast for Brent this December to $95 per barrel. “Markets are aware that if the pressure continues, central banks will need to extend or strengthen their interest rate hiking cycles.” Both were the sharpest price rises in almost a year. [agreed](https://edition.cnn.com/2022/10/05/energy/opec-production-cuts/index.html) to slash output by 2 million barrels a day, the largest cut since the start of the pandemic and equivalent to about 2% of global oil demand. [voluntary reduction](http://edition.cnn.com/2023/03/21/energy/russia-oil-production-cut-extension/index.html) of 500,000 barrels per day until the end of 2023.

Oil prices surged on Monday after Saudi Arabia and other OPEC+ producers announced a surprise cut in their output target, a move that rippled through stock ...

[(.FTSE)](https://www.reuters.com/quote/.FTSE) rose 0.7%. The rise in oil prices is bad news for Japan's trade balance given it imports most of its energy. [Markets](/markets/) rates could be impacted by data on ISM manufacturing and several pieces of employment data out this week, most significantly Friday's non-farm payrolls report. [Goldman Sachs](/business/energy/goldman-sachs-raises-brent-oil-price-forecasts-after-opecs-surprise-output-cuts-2023-04-02/) lifted its forecast for Brent to $95 a barrel by the end of the year and to $100 for 2024 following the oil output change, which was announced on Sunday, a day before a virtual meeting of an OPEC+ ministerial panel including Saudi Arabia and Russia. [news](/business/energy/sarabia-other-opec-producers-announce-voluntary-oil-output-cuts-2023-04-02/) OPEC+ would aim to cut output by around 1.16 million barrels per day. and Europe to make sure that inflation is brought closer to target." Though the impact of Friday's report could be muted by the Easter holidays. [(.MIAPJ0000PUS)](https://www.reuters.com/quote/.MIAPJ0000PUS) lost 0.25%, weighed with tech heavier benchmarks like Hong Kong [(.HSI)](https://www.reuters.com/quote/.HSI) and Korea [(.KS11)](https://www.reuters.com/quote/.KS11) underperforming. [(BP.L)](https://www.reuters.com/companies/BP.L), Shell [(SHEL.L)](https://www.reuters.com/companies/SHEL.L), TotalEnergies [(TTEF.PA)](https://www.reuters.com/companies/TTEF.PA) and Eni [(ENI.MI)](https://www.reuters.com/companies/ENI.MI) all rose around 4%, sending the European Oil & Gas index [(.SXEP)](https://www.reuters.com/quote/.SXEP) up 3.7%, set for its biggest one-day gain since November. On a regional and global basis the various moves cancelled each other out with the European STOXX 600 [(.STOXX)](https://www.reuters.com/quote/.STOXX) and MSCI's 47-country all world index [(.MIWD00000PUS)](https://www.reuters.com/quote/.MIWD00000PUS) trading around flat. [Asian stock markets :](https://tmsnrt.rs/2zpUAr4)

An oil production target cut announced by some of the world's top exporters is bad news for the European Central Bank as it tries to bring down inflation ...

Federal Reserve is the key player. "The case for more ECB rate hikes is still intact," UniCredit said in a note. For policy, longer-term pricing matters more, and oil futures further out rose by less than half the spot price increase. The central bank acts on longer-term trends and looks through this sort of market volatility. The U.S. These bets on the so-called terminal rate rose only a few basis points on Monday.

Adding to global economic uncertainties, oil prices rose on Monday after Saudi Arabia and other major producers announced a surprise cut in crude ...

And higher prices will encourage more investment and production from other producers, like shale oil drillers in the United States. Saudi Arabia needs high oil revenues to support ambitious development schemes aimed at diversifying the kingdom’s economy away from oil. Also hard to gauge is the extent of the damage that may be done to overall oil demand by the recent turmoil in the banking industry. “This is a new Saudi style of unpredictable maneuver,” said Karen Young, a senior fellow at the Columbia University Center on Global Energy Policy. It is not clear how quickly China, the largest oil importer and Saudi Arabia’s most important customer, will recover from its “zero Covid” lockdowns. It is typically expressed as the annual change in prices for everyday goods and services such as food, furniture, apparel, transportation and toys.

Central bankers who spent past weeks puzzling over how financial turmoil will impact their outlook now have a jolt in the form of higher oil prices to ...

Federal Reserve Bank of St. Louis President James Bullard said OPEC's decision to cut output was unexpected and an increase in oil prices could make the ...

Oil prices are not going anywhere near $100 per barrel despite the latest round of production cuts according to Citigroup's Ed Morse.

[raised its Brent Crude forecast](/Latest-Energy-News/World-News/Goldman-Sachs-Raises-Oil-Price-Forecast-Following-OPEC-Cut.html) to $95 from $90 at the end of the year. ADVERTISEMENT supply growth and uncertainty in Chinese demand growth path will keep the market fairly balanced, Ed Morse, global head of commodities research at Citigroup, told

Oil prices surged on Monday after Saudi Arabia and other OPEC+ producers announced a surprise cut in the amount of crude they plan to pump out every month.

Russian energy spokesman Dmitry Peskov said the move was designed to "keep crude oil and petroleum product prices at a certain level." On Friday, they were only at 50 per cent. The move by the oil cartel impacted interest rate expectations, as moves to increase the price of oil won't help central banks around the world, who are trying to bring down inflation.

Also in today's newsletter, Russia confiscates passports of senior officials and Tesla smashes production record.

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Crude oil prices rose further into the afternoon on Monday, trading at $85 for Brent crude oil around 4:30 p.m. ET, on the back of Sunday's OPEC+ move that ...

[Join the discussion](#join-discussion) It is the highest price level in months for crude oil. I’m going to make sure whoever gambles on this market will be ouching like hell,” Abdulaziz said in Septemer 2020. Most analysts had assumed OPEC+ would stay the course and keep production plans steady, but a surprise decision from the group on Sunday shocked traders. ADVERTISEMENT ET, on the back of Sunday’s OPEC+ move that shocked the market.

Goldman Sachs has raised price forecasts for Brent crude futures LCOc1 following a surprise announcement from OPEC+ that the producer alliance will cut oil ...

benchmark) WTI CLc1 lows that were previously characterized as sufficient to refill, may have contributed to the OPEC+ decision to cut too,” it said. SPR in fiscal year 2023, although (U.S. Goldman Sachs has raised price forecasts for Brent crude futures LCOc1 following a surprise announcement from OPEC+ that the producer alliance will cut oil output further.

Oil prices surged after Saudi Arabia and some other oil producers announced they're reducing their oil output. That will send gas prices higher – and ...

Last week the Dallas Fed released its quarterly survey of oil companies. But the U.S. is also the world's largest producer of oil. is the world's largest consumer of oil, by a long shot. Saudi Arabia and the U.S. The U.S. Analysts at RBC Capital Markets, who have traveled to Riyadh several times in recent months, wrote that the Kingdom of Saudi Arabia now sees the U.S. The kingdom consistently denies that production decisions are made with a specific price target in mind. That hurt the budgets of countries like Saudi Arabia, which rely on oil revenue. And cutting production was a reliable way to bring prices back up. Reducing oil production means less supply on the market, which obviously pushes prices higher. "Overall, we think that oil price says might increase by around 10% going forward compared to what we had," says Leon, of Rystad Energy.

Since 2017, Russia and China were working closely together in Iraq in order to secure lucrative oil contracts, and diminish the influence of Western ...

However, the FGI in Baghdad and SOMO argue that under Article 111 of the Constitution oil and gas are under the ownership of all the people of Iraq in all the regions and governorates. [my latest book on the global oil markets](https://www.amazon.co.uk/Complete-Guide-Global-Market-Trading/dp/191274113X), the China-Russia axis feels sufficiently emboldened to signal its true purpose: it is taking full control of the Middle East. The third reason was that it was that in addition to the military elements that Russia had brought to its activities in the Iraq Kurdistan region, the huge new Chinese deal in the south was being done by Zhenhua Oil, an arm of China’s huge defence contractor Norinco. At the end of 2020/beginning of 2021, China decided to use the same strategy in southern Iraq that Russia had used in the northern Kurdistan region. There is no problem shipping or selling any of the oil and gas that China itself does not want, as sanctions currently are only on Iran, not Iraq, and these can easily be circumvented anyway, through methods also analysed in depth in [my latest book on the global oil markets](https://www.amazon.co.uk/Complete-Guide-Global-Market-Trading/dp/191274113X). First, the deal was obviously straight out of the playbook that Russia had used to gain control over the Iraqi Kurdistan oil industry in 2017, as analysed above. Consequently, they believe that all oil and gas developed across all of Iraq should be sold through official channels of the central Federal Government of Iraq in Baghdad. The KRG also maintains that Article 115 states: “All powers not stipulated in the exclusive powers of the federal government belong to the authorities of the regions and governorates that are not organised in a region.” As such, the KRG argues that as relevant powers are not otherwise stipulated in the Constitution, it has the authority to sell and receive revenue from its oil and gas exports. It was then Russia that fomented discord between the KRG in the north and the FGI government in the south, principally by exploiting existing discontent on both sides with the budget payments-for-oil deal that had been agreed between north and south Iraq in 2014. This deal never worked properly, and Russia from 2017 sought to exacerbate this to create much greater discord between north and south Iraq through several methods also analysed in depth in [natural gas ](/Energy/Natural-Gas/Natural-Gas-A-Comprehensive-Guide-To-The-Worlds-Most-Crucial-Fuel.html)centre of the world, the Middle East. And that context is more easily explained if the deal is written not as the Saudi Arabia-Iran deal, but rather as the Saudi Arabia/OPEC-China/Russia/Shia Crescent of Power deal.

A first-of-its kind analysis by the nonprofit Rocky Mountain Institute has looked at greenhouse-gas emissions across entire supply chains and comes to an ...

The Eagle Ford’s moderate gas-to-oil ratio leads to moderate levels of GHG emissions mainly from venting and flaring. Wyoming, Bakken No Flare and Texas Eagle Ford Black Oil Zone are also among the cleanest, with GHG emissions of 467 kg, 471 kg and 477 kg of CO2 equivalent per barrel, respectively. OCI says that Bakken No Flare’s upstream GHG emissions are low when the associated gas is well-managed and not flared or otherwise released. The oil field produces 144,000 barrels of oil equivalent per day. There are other tools that you can use to compare the carbon and greenhouse gas emissions of different oil fields. This field produces an ultra-light, sweet oil with production zones ranging from oil to gas. It’s one of the country’s oldest and largest fields in the San Joaquin Valley and has been in production for 120 years. Ghawar produces 5,000,000 barrels of oil equivalent per day. Turkmenistan’s South Caspian basin is the second worst polluter while the Permian Basin in West Texas ranks third with the majority of their emissions coming from upstream production. A first-of-its kind analysis by the nonprofit Rocky Mountain Institute has looked at greenhouse-gas emissions across entire supply chains and found that oil and natural gas fields in Russia, Turkmenistan and Texas are the worst polluters on our planet. Another dilemma--the fast pace of transition to renewable sources only appears to be adding to the total energy supply but is not doing much to displace oil and gas demand to any appreciable degree. Climate modeling in recent years indicates that it is still hypothetically possible to limit global warming to no more than 1.5 °C--the level sought by the Paris Agreement--even given currently committed fossil-fuel-emitting infrastructure as long as no new fossil-fuel-emitting infrastructure is built.

With the price of Brent crude, the international oil standard, jumping about 6% to $85 a barrel on Monday, motorists should expect prices at the pump to rise ...

"Will the size of the cut really be a million [barrels per day] plus or will it be something less? Gas prices soared to an average of $5.02 in June of 2022, stoked by the war in Ukraine, with prices at the pump in California soaring well above $6. Gas prices usually rise about 30 cents a gallon between spring and summer, Kevin Book, managing director of Clearview Energy Partners, told CBS News. By summer, the average national price for regular gas is likely to be around $4 a gallon. Grossman said gas prices this time of year typically hover between $2 and $3.50 per gallon. From Sunday to Monday, average gas prices stayed steady at $3.50 a gallon,

Oil built on the largest gain in a year after OPEC+ delivered an unexpected and substantial production cut, tightening the global market.

“OPEC now has very significant pricing power relative to the past,” Goldman Sachs analysts including Daan Struyven said in a note. The Saudis reflected that short sellers were due a reminder of the pain OPEC+ can still inflict on them, the people said. It was then supercharged by the OPEC+ decision to remove more than 1 million barrels of daily output from the market. The rebound was driven initially by expectations Chinese demand would pick up as Covid Zero abruptly ended, and by interruptions to supplies from Iraq. Widely watched timespreads signaled increased market strength after the OPEC+ salvo. West Texas Intermediate advanced toward $81 a barrel after rallying by more than 6% on Monday.

Higher oil prices will challenge regional governments to make "tough decisions" to tackle inflation pressures, said Albert Park, chief economist at ADB.

"The lack of lockdown risk in China really frees up supply chains, and that could be a boon" for the region. "The recent banking turmoil in Europe and the United States is an indication that financial stability risks have heightened. China, obviously, is a source of final demand for many goods produced in the region," noted the economist. "Monetary authorities need to be vigilant, and we still may not have seen the end of high rate increases in the region," said Park. But we've upgraded that in this announcement to 5%," said Park. - Most of the Asian economies are importers of oil, like Indonesia and those in central Asia, he said.

Oil prices rose on Tuesday after OPEC+ plans to cut more production jolted markets the previous day, with investors' attention shifting to demand trends and ...

[Goldman Sachs](/business/energy/goldman-sachs-raises-brent-oil-price-forecasts-after-opecs-surprise-output-cuts-2023-04-02/) lifted its forecast for Brent to $95 a barrel by the end of this year, and to $100 for 2024. Market watchers have been trying to gauge how much longer the U.S. Federal Reserve may need to keep raising interest rates to cool inflation, and whether the U.S. Brent crude futures were up 42 cents, or 0.5%, to $85.35 a barrel by 0632 GMT. West Texas Intermediate (WTI) crude futures were trading at $80.85 a barrel, up 43 cents, or 0.5%. Register for free to Reuters and know the full story