Oil producers committed to output cut deal: OPEC

A Vietnamese delegation led by Deputy Finance Minister Truong Chi Trung attended the 36th session of the IFAD’s annual Governing Council in the Italian capital Rome from February 13–14. In his opening speech, IFAD President F. Nwanze called for united efforts to bring the world out of poverty. As many as 1.29 billion people earn less than US$1.25 per day and around 870 million suffer hunger every night. To ensure food security, boosting sustainable agricultural and rural development is imperative, Nwanze said. The IFAD President praised member countries’ IFAD9 contributions that will be used to fund global agriculture and rural development projects. 79 nations have committed US$1.38 billion to the fund thus far. IFAD aims to reach 90 million people by 2015, moving 80 million out of poverty. Dynamic partnerships with governments and donors will be key to scaling up the most innovative and effective projects and programmes. F. Nwanze was reelected to another four-year term as IFAD President. IFAD is a specialised United Nations agency dedicated to eradicating rural poverty in developing countries. It was established as an international financial institution in 1977—one of the major outcomes of the 1974 World Food Conference. Headquartered in Rome, the IFAD is also a member of the United Nations Development Group. It has so far invested US$13.7 billion through low interest rate loans and grants, developing and financing programmes and projects designed to enable 405 million people to overcome poverty independently. IFAD now has 167 members including developing countries as well as…... [read more]

The race is to the swift The reason is Vietnamese businesses are used to operating on a small scale. Their short-sighted planning has resulted in cancelling many big orders from foreign partners. Most recently, a continuous sharp decline in the price of coffee has caused huge losses to many businesses, who operate individually without aligning themselves to prevent unreasonable price gauging by foreign importers. Luong Van Tu, Chairman of the Association of Coffee and Cacao of Vietnam (VICOFA), says there is no denying the fact that its 146 member businesses are poorly aligned as they care too much about making their own profits, not about regulating the distribution of their products to the market. It is no surprise to see not a few businesses seeking to dump their products on the market and to put other businesses in rather an awkward position. Another reason for their poor alignment is they only think of their immediate interests rather than their long-term interests. Bui Kien Thanh, a financial expert says that only by aligning themselves could they become strong enough to gain a foothold in the world market. Be aligned only when in a fix Usually when facing difficulties businesses find it important to align themselves, says Le Tien Truong, deputy general director of the Vietnam National Textile and Garment Group. In the past the need for such alignment never crossed their minds, he adds. A representative from the Vietnam Tea Association also says that most businesses have a vague concept of…... [read more]

Vietnam’s Ministry of Finance has proposed a draft law that suggests nearly tripling environmental protection tax on oil and gas consumption. Vietnam’s Ministry of Finance has proposed a draft law that suggests nearly tripling environmental protection tax on oil and gas consumption. People in Vietnam currently have to pay VND3,000 (US$0.13) in environmental tax for each liter of gasoline, while the finance ministry recommended that should be raised to VND8,000 ($0.36) in its draft regulation, which will be submitted to the central government in June and the National Assembly in October for approval. In 2014, a similar hike was imposed on the type of tax, raising it from VND1,000 ($0.04) to VND3,000, which the Ministry of Finance referred to as a good way to stabilize the national budget. During an interview with Tuoi Tre (Youth) newspaper, Nguyen Van Tiu, chairman of the management board of a Hanoi-based oil and gas company, affirmed that the proposed increase in environmental protection tax would certainly raise gasoline cost in the country. Fuel price itself has been forecast to skyrocket in 2017 when the Organization of the Petroleum Exporting Countries reduces its output, Tiu stated, adding that elevating the tax without careful consideration would leave an enormous impact on the economy. According to Nguyen Minh Tan, an official from the National Assembly Finance and Budget Committee, adjusting the environmental protection tax requires approval from the nation’s legislative body. The new amount of tax must be based on the practical status of the country’s socio-economic…... [read more]

US crude dipped below the US$40 threshold following weekly data that showed US energy firms added two oil drilling rigs last week, the fifth increase in a row. The rise in the number of rigs emerging after a second quarter lull in prices is adding to concerns US shale production is proving slow to respond to falling prices, prolonging a global glut. "Everyone is still looking at it saying 'Wow, you still don't have production coming down,'" said Tariq Zahir, founder at Tyche Capital in Laurel Hollow, New York. US October crude settled 87 cents, or 2.1%, lower at US$40.45 a barrel, having touched a new 6-1/2-year low of US$39.86 a barrel. Front-month US crude has fallen 33% over eight consecutive weeks of losses, the longest such losing streak since 1986. It pared some losses late in the trading session, as US RBOB gasoline futures rebounded from a contract low, on news of a fire in a gasoline-making unit at PBF Energy Inc's 182,000 barrels per day Delaware City, Delaware, refinery. Brent oil ended US$1.16, or 2.5%, lower at US$45.46 a barrel. It hit a low of US$45.07 and threatened to break below US$45 a barrel for the first time since March 2009. Energy markets slid early in the day as world stock and currency markets joined an extended rout across raw materials this week, a slump accelerated on Friday by data showing activity in China's factory sector, a huge user of many commodities, shrank at its fastest pace in…... [read more]

Russia’s Minister of Energy Alexander Novak said Saudi Arabia, Qatar, Venezuela, and Russia came to an understanding on April 16 on a draft agreement to limiting oil prices, but one day later, some changed their position just before the further talks began. According to Novak, the global oil market may be rebalanced by mid 2017, 6 months later than the date set by the failed Doha deal. No signs of oil output reduction In recent years, oil producers in the Gulf Region have accelerated their oil production. According to the website oilprice.com, the number of Saudi oil wells increased from 58 in 2014 to 67 on April 19. Saudi Arabia is seeking to expand its Khurais oil field by 2018, raising its output by 300,000 barrels per day. Last month, Amin Nasser, CEO of Saudi Aramco, the nation’s biggest oil group, said his company will not abandon any oil production or refinery project and is considering upgrading the Ras Tanura refinery to increase its capacity to 550,000 barrels per day. Iraq, the second largest producer in the Organization of Petroleum Exporting Countries (OPEC), has steadily increased its oil production. The latest data released by Iraq oil marketing company SOMO show that Iraq’s oil output in March rose by 2% to a record level of 4.55 million barrels per day. Kuwait, another important member of OPEC, is working to increase its output. CEO Jamal Jaafar of the Kuwaiti Oil Company says Kuwait hopes to raise its oil output from the current…... [read more]

Libya has fallen into constant unrest after the domestic revolt and the NATO military intervention in 2011 to overthrow the regime of leader Gaddafi. Conflicts between armed groups have ravaged the once-prosperous country, turning Libya into a 'battlefield'. The self-proclaimed Islamic State (IS) plotted to turn Libya into a place to train jihad fighters to be sent to neighbouring countries of North Africa and Europe. As a petroleum exporting country with oil and gas reserves ranking first in Africa and ninth in the world, the mining volume of Libya has slumped dramatically, causing severe damages to the economy which depends more than 90% on 'black gold'. After a long time of the two rival governments co-existing in Libya it has led the country to chaos. Under support of the United Nations, the Government of National Accord (GNA) was formed and began its operation in Tripoli for nearly a year in a bid to replace small and rival governments, however, Libya cannot escape from political crisis. The GNA, backed by the UN, has no real power and is struggling to establish leadership in the country in the context that the Tobruk-based House of Representatives refuses to endorse this government. The opportunity to find solutions to the political crisis in Libya was only revealed after Libyan armed forces united to dislodge IS rebels from Sirte, the coastal central city of Libya which is considered the 'headquarters' of the IS in the country. After seven months of liberating Sirte, forces loyal to GNA…... [read more]

KUWAIT CITY: Kuwaiti Oil Minister Essam al-Marzouk, whose country heads a committee to monitor crude output cuts, on Monday (Jan 9) described as encouraging production reductions announced so far. The Organisation of the Petroleum Exporting Countries agreed in November to cut its production by 1.2 million barrels per day starting January to reduce a global supply glut that had kept prices painfully low. A group of 14 non-OPEC producers, led by the world's top crude producer Russia, agreed in December to lower their output by another 600,000 bpd, making the total pledged cuts at 1.8 million bpd. "So far, all Gulf producers, Iraq and Russia have announced their commitment to the cuts," Marzouk told a news conference after talks with OPEC secretary general Mohammad Barkindo. "These commitments make up between 60 per cent and 70 per cent of the pledged cuts" from the beginning of January, said the minister. "We expect the compliance to the cuts to be big because of its impact on boosting prices." Kuwait heads the five-member Joint Ministerial Monitoring Committee set up to monitor compliance with the pledged cuts. Marzouk said he discussed with Barkindo mechanisms to monitor the cuts by OPEC and non-OPEC members. The Kuwaiti iminister said they discussed monitoring output of each member country and also the level of exports with the assistance of international companies. Barkindo described as historic the agreement between the 24 OPEC and non-OPEC producers. Marzouk said the committee would meet in Vienna on Jan 21 and 22 to…... [read more]

Oil prices rose in the first trading hours of 2017, buoyed by hopes that a deal between OPEC and non-OPEC members to cut production, which kicked in on Sunday, will be effective in draining the global supply glut. International Brent crude oil prices LCOc1 were trading up 31 cents, or 0.55 percent, at $57.13 a barrel at 0203 GMT on Tuesday - close to last year's high of $57.89 per barrel, hit on Dec. 12. Oil markets were closed on Monday after the New Year's holiday. U.S. benchmark West Texas Intermediate (WTI) CLc1 crude oil prices were up 32 cents, or 0.6 percent, at $54.04, not far from last year's high of $54.51 reached on Dec. 12. Jan. 1 marked the official start of the deal agreed by the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC member countries such as Russia in November last year to reduce output by almost 1.8 million barrels per day. Market watchers said January will serve as an indicator for whether the agreement will stick. "Markets will be looking for anecdotal evidence for production cuts," said Ric Spooner, chief market analyst at Sydney's CMC Markets. "The most likely scenario is OPEC and non-OPEC member countries will be committed to the deal, especially in early stages." Libya, one of two OPEC member countries exempt from cuts, increased its production to 685,000 barrels per day (bpd) as of Sunday, up from around 600,000 a day in December, according to an official from the National Oil Corporation…... [read more]

Viet Nam News HÀ NỘI - Vietnamese shares may advance in 2017, analysts say, cautioning that market conditions can get volatile with international events of 2016 continuing to exert unpredictable impacts on Việt Nam. Both market indices ended 2016 on a positive note, helping them advance over 2015's closing levels. The benchmark VN Index finished 2016 at 664.87 points, up 14.8 per cent over 2015. The southern market index had been forecast to reach 680 points by the end of the year. The HNX Index on the Hà Nội Stock Exchange closed at 80.12 points, almost unchanged after a year. Some analysts say 2017 will be the year that the benchmark VN Index will tip new highs on prospects of stable macroeconomic growth and investor confidence bolstered by positive international market conditions. "We expect that the market will grow with increases in score levels, market liquidity and capitalisation in 2017" because "the macroeconomic conditions are stable, GDP growth improves and companies will likely make more earnings," said Lê Nguyệt Anh, ACB Securities Co's head of market analysis. "Businesses with higher earnings could be those in real estate, consumer and banking sectors while energy firms' profits will move sideways or grow slightly compared to the drop in 2016." The future is bright for energy stocks after the Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC producers in mid-December reached an agreement to cut output levels in order to stabilise the oil market and lift crude prices. US crude West Texas Intermediate…... [read more]

Oil prices were little changed on Tuesday in light pre-New Year holiday trading with markets adopting a wait-and-see stance less than a week before the first output cut deal agreed between OPEC and non-OPEC members in 15 years is scheduled to kick in. London Brent crude for February delivery LCOc1 was down 1 cents at $55.15 a barrel by 0335 GMT (10.35 p.m. ET) after settling up 11 cents on Friday. Oil markets were closed on Monday after Christmas at the weekend. NYMEX crude for February delivery CLc1 was up 10 cents at $53.12 a barrel, after closing at a 17-month high on Friday. Jan. 1. bring the official start of the deal agreed by the Organization of Petroleum Exporting Countries and non-OPEC members to lower production by almost 1.8 million barrels per day (bpd). The accord is designed to bolster oil prices, squeezed for more than two years by a global supply glut. "OPEC's output cuts are nearing, but because there's hardly any news on producers, the market is stuck in the doldrums," said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo. While major OPEC members led by Saudi Arabia, will cut production, Libya and Nigeria - exempt because armed conflict has curbed their output - have been increasing production recently, Akuta said. Libya has boosted production by about 22,000 barrels per day after major western pipelines were reopened and it could add 270,000 bpd within three months, the National Oil Corporation said. "That raises…... [read more]




Links Topics : http://news.c10mt.com/2017/08/oil-producers-committed-to-output-cut.html