Monday , December 10 2018
Breaking News

Oil prices determined to stay within $80 as Saudi announces Dec. supply cut

Oil prices rose by about one per cent on Monday after top exporter, Saudi Arabia, announced a cut in supply for December.

International benchmark Brent crude oil futures were at 71.11 dollars per barrel at 0051 GMT, up by 93 cents, or 1.3 per cent from their last close.

U.S. West Texas Intermediate (WTI) crude oil futures were at 60.73 dollars per barrel, up by 54 cents, or 0.9 per cent from their last settlement.

Saudi Arabia plans to reduce oil supply to world markets by 0.5 million barrels per day in December, Khalid al-Falih, its Minister of Energy, Industry and Mineral Resource said on Sunday.

The country faces uncertain prospects in its attempts to persuade other producers to agree to a coordinated output cut.

Khalid al-Falih told reporters that Saudi Aramco’s customer crude oil nominations would fall by 500,000 bpd in December versus November due to seasonal lower demand.

“Saudi Arabia has stepped in front of the oil market bears, proactively announcing they will reduce exports,” said Stephen Innes, head of trading for Asia/Pacific at futures brokerage in Oanda in Singapore.

A big concern for Saudi Arabia and other traditional producers from the Middle East-dominated Organisation of the Petroleum Exporting Countries (OPEC) is the surge in U.S. output.

-Reuters/NAN

 

About Lanre Oyetade

A multiple award winner in Economics and business journalism, Lanre Oyetade has served close to two decades in the media industry, spanning different notable stables, where he is privileged to have risen to the position of a title editor. A masters degree holder in Economics from the University of Lagos and doctoral student at the Babcock University, he is a winner of the prestigious NMMA Capital Market Award for two consecutive years (2004 & 2005), and was also a nominee for the body’s banking and finance and money market awards for two years. In 2013, he also won the Most Outstanding Business-Reporting Title Editor award of the National Institute of Marketing of Nigeria (NIMN). A minister in the LORDS’s vineyard, he has been an inspirational speaker and resource person at many corporate and religious fora since early 2004, and has so far authored three books on the capital market; on personal effectiveness, and on personal finance, in 2008 and 2014, respectively.