Weekly Energy Recap: Market builds momentum

Beyond the geopolitical sphere, the year started with a fresh round of deeper OPEC+ cuts. (Reuters/File Photo)
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Updated 04 January 2020

Weekly Energy Recap: Market builds momentum

RIYADH: The oil market closed out 2019 on a bullish note with prices again on the upswing. The weekend air strikes in Baghdad triggered another surge in the market.
Beyond the geopolitical sphere, the year started with a fresh round of deeper OPEC+ cuts, with the group cutting a further 500,000 bpd on top of the earlier agreed 1.2 million bpd.
This coincided with a huge fall in US crude inventories in the last week of 2019 by some 7.8 million barrels.
Such developments have made for a very tight market with room for further appreciation, especially given the improving macroeconomic backdrop and signs of a thaw in US-China trade relations.
It is noteworthy that some US oil workers are leaving Iraq, even if Iraqi officials insist production will not be affected by attacks early Friday that killed a top Iranian military commander.
Still, it highlights an obvious supply risk and one wonders if the psychology of the market may shift from fears around a potential supply surplus to worries of a supply shortage and in turn, whether this will be enough to encourage upward momentum in US exploration and production spending this year.


Kuwait backs OPEC+ meeting, resumes Neutral Zone shipments with Saudi

Updated 03 April 2020

Kuwait backs OPEC+ meeting, resumes Neutral Zone shipments with Saudi

  • The shipment, of about one million barrels will be loaded on a tanker on Saturday and Sunday, for export to Asia

DUBAI: Kuwait supports Saudi Arabia’s invitation for a meeting between meeting of OPEC and non-OPEC oil producers, an informal grouping known as OPEC+, to curb global oil supply and halt the oil price rout, oil minister Khaled Al-Fadhel said on Friday.

The minister, cited by the state-news agency KUNA, also announced the resumption of crude shipments from the so-called Neutral Zone the country shares with Saudi Arabia for the first time in five years.

The shipment, of about one million barrels will be loaded on a tanker on Saturday and Sunday, for export to Asia, he said.