Oil prices rise amid optimism over production cuts

December 28, 2016

London/New York, Dec 28: Oil edged further above $55 a barrel on Tuesday, drawing support from expectations of tighter supply once the first output cut deal between OPEC and non-OPEC producers in 15 years takes effect on Sunday.

Oilpro

Jan. 1 is the official start of the deal agreed by the Organization of Petroleum Exporting Countries (OPEC) and several non-OPEC producers to lower production by almost 1.8 million barrels per day (bpd).

Brent crude was up 17 cents at $55.33 a barrel at 1340 GMT. The global benchmark reached $57.89 on Dec. 12, the highest since July 2015. US crude gained 30 cents to $53.32.

Trading was thin on Tuesday, with less than one-third of the usual volume in futures contracts in West Texas Intermediate crude oil.

“Some of the doubts (in OPEC) people are showing are going to have to be put to rest,” said Phil Flynn, analyst at Price Futures Group in Chicago. “There is a strong possibility that we are going to rally into the end of the year.”

The members of an OPEC and non-OPEC committee formed to monitor the market may meet on Jan. 13, two sources said. Oil rallied further after news of the meeting, which may give an early indication of compliance with the deal.

“From January, we will start to have a better idea about the level of OPEC production,” said Olivier Jakob, oil analyst at Petromatrix.

“To go above $60 is going to be difficult. We are already close to the top rather than the bottom of the range right now,” he said.”

Russian oil producer Gazprom Neft said on Tuesday it planned to increase oil production by 4.5 to 5 percent next year, less than intended before Russia joined the supply cut deal.

Major OPEC members such as Saudi Arabia and Iraq have informed customers of lower supplies. But Libya and Nigeria — which are exempt from reductions because conflict has curbed their output — have been increasing production.

Products markets outpaced crude on Tuesday, as the price of reformulated blendstock gasoline gained 2.4 percent to $1.6652 a gallon, while heating oil gained 2.9 percent to trade at $1.71 a gallon. Those contracts expire Friday; options on those contracts are expiring Tuesday.

Venezuela said on Tuesday it would cut 95,000 barrels-per-day of oil production in the New Year.

“Without prejudicing its international contractual obligations, from Jan. 1, 2017, (state oil company) PDVSA and/or its subsidiaries will implement a reduction in the volumes of its main crude sale contracts, all in conformity with existing terms and conditions,” the Energy Ministry said.

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News Network
April 27,2024

The spokesman for the Yemeni Armed Forces has said it has carried out new operations against American and British targets in retaliation for their aggression on the country.

Brigadier General Yahya Saree said on Friday that Yemen’s naval forces struck a British oil tanker in the Red Sea with missiles.

Saree also said the military also shot down an American MQ-9 drone in Sa’ada province.

He added that the new operations were also a show of solidarity with Palestinians in the Gaza Strip, amid the Israeli genocide there. 

“The Yemeni Armed Forces salute all the people of Yemen for their faithful response to the call of the fighter leader Sayyed Abdulmalik Badr El-Din Al-Houthi, may Allah protect him, in their unprecedented large-scale interaction in support of our oppressed brothers in the Gaza Strip, affirming support for the Armed Forces in their military operations against the ‘Israeli’ enemy and against the American-British aggression supporting it in the Red and Arabian Seas and the Indian Ocean,” Saree said.

He stressed that the Yemeni armed forces will continue operations in the Red and Arabian Seas as well as the Indian Ocean until the Western-backed Israeli genocide comes to a halt.

Since the start of the brutal campaign in Gaza, the regime has killed more than 34,300 Palestinians and injured over 77,000 others. It has cut off fuel, electricity, food and water to the more than two million Palestinians living there.

The Yemeni Armed Forces have been targeting Israeli vessels or those “associated” with the occupying regime in the Red Sea and the Arabian Sea since October 7, 2023.

The regime ignited its bloody war machine in the besieged Palestinian territory on that October day in response to Operation Al-Aqsa Storm conducted by the resistance movement Hamas.

The maritime attacks have forced some of the world’s biggest shipping and oil companies to suspend transit through one of the world’s most important maritime trade routes.

Tankers are instead adding thousands of miles to international shipping routes by sailing around the continent of Africa rather than going through the Suez Canal.

The pro-Palestine maritime campaign has also prompted airstrikes by the US and its allies on Yemen – in violation of the Yemeni sovereignty and international law.

In consequence, Yemen’s armed forces have declared US and British vessels as legitimate targets.

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News Network
April 26,2024

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The US military has started the construction of a controversial maritime pier off the coast of Gaza, claiming that it seeks to bring aid into the besieged strip.

"I can confirm that US military vessels, to include the USNS Benavidez, have begun to construct the initial stages of the temporary pier and causeway at sea," Pentagon spokesperson Major General Patrick Ryder told reporters on Thursday.

US President Joe Biden ordered the construction of the pier in March. Shortly afterwards, the US deployed naval ships to the Eastern Mediterranean to construct the "floating pier" that will reportedly receive aid from Cyprus, and send it onward to Gaza.

The US announcement came amid mounting pressure on Israel to allow aid into Gaza as the UN and other aid agencies have warned of imminent famine due to Israel's prevention of the land-based delivery of life-saving aid to Gaza.

The deputy UN food chief said on Thursday the northern Gaza Strip is still heading toward a famine.

World Food Program (WFP) Deputy Executive Director Carl Skau called for a greater volume of aid to be allowed into Gaza and appealed for Israel to allow direct access from the southern Ashdod port to the Erez crossing.

The pier is scheduled to become operational in May.

Reuters quoted a senior Biden administration official, who asked not to be named, as saying that aid coming off the corridor will still need to pass through Israeli checkpoints on land, raising questions about possible delays even after aid reaches shore.

That is despite the aid having already been inspected by Israel in Cyprus prior to being shipped to the besieged strip.

According to the official, nearly 1,000 US troops would support the military effort, including in coordination cells in Cyprus and Israel.

The Israeli military said its troops would protect the US troops who are setting up the pier and provide logistics support for it.

Last month, experts said Israel backed the US plan to construct the pier in order to retain control over the aid deliveries and as a way to displace Palestinians from the besieged strip via the Mediterranean Sea, ahead of an expected invasion of the southern town of Rafah, where nearly more than half of Gaza's population of 2.4 have sought shelter from Israeli strikes elsewhere in Gaza.

Israel launched the war on Gaza on October 7 after the Palestinian resistance movement Hamas waged the surprise Operation Al-Aqsa Storm against the occupying entity in response to the Israeli regime's decades-long campaign of bloodletting and devastation against Palestinians.

Tel Aviv has also blocked water, food, and electricity to Gaza, plunging the coastal strip into a humanitarian crisis.

Since the start of the offensive, the Tel Aviv regime has killed at least 34,305 Palestinians and injured 77,293 others.

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News Network
April 23,2024

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The genocidal Israeli war on the Gaza Strip has entered its 200th day, with occupation forces killing more Palestinians in defiance of widespread international outcry to end the carnage.

The aggression marked its 200th day on Tuesday with no end in sight to the Israeli war that has so far killed a shocking number of Palestinians and led to a humanitarian crisis in the besieged territory.

The Gaza Health Ministry said Israeli forces have committed three "massacres" over the past 24 hours, killing at least 32 Palestinians and wounding 59 others.

The numbers, it added, bring the Palestinian death toll to more than 34,183, with at least 77,143 injured and an estimated 7,000 missing and presumed dead since early October.

More than 14,500 children and 9,500 women are among those killed, making up over 70 percent of the victims, according to health officials.

Israel waged its brutal US-backed war on the Gaza Strip on October 7 after the Palestinian Hamas resistance group carried out Operation Al-Aqsa Storm against the usurping entity in retaliation for its intensified atrocities against the Palestinian people.

Israel has been carrying out war crimes in Gaza by deliberately starving people and forcing their evacuation, as well as targeting hospitals and schools sheltering displaced Palestinians.

Despite all these atrocities, the regime has failed to achieve its declared objectives of “destroying Hamas” and finding Israeli captives held in Gaza.

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