Saudi Arabia pumps record amount of oil as Trump piles on pressure

Saudi Arabia pumps record amount of oil as Trump piles on pressure”

USA crude inventories rose by 3.5 million barrels last week to 442.7 million, industry group the American Petroleum Institute said late Tuesday, more than analysts' forecasts for an increase of 769,000 barrels.

Around 10:00 a.m. EST WTI front-month futures traded at $51.77 per barrel, a 0.3 percent increase, while Brent front-month traded at $60.73, a 0.3 percent increase. The question for many investors and traders is whether a bottom has been reached or if it is still a falling knife.

Investors, especially buyers, are hoping that the leaders of G20 will do something to ease the trade war between China and the USA to support the falling oil prices.

The American crude marker teeters near the $50 threshold as the Saudi output surge combines with larger-than-expected exports of Iranian oil after Trump granted sanctions waivers to some nations. Firstly, the RSI is issuing an oversold signal.

Oil prices dropped again after a sixth-week loss. Sluggish GDP growth and low-priced non-Opec supply should put a cap on oil prices in the absence of any large-scale geopolitical disruption.

Oil prices have crashed 30% in a matter of weeks but Saudi Arabia isn't hurting just yet. Oil prices dived 8% on Friday for the biggest weekly losses in almost three years. This year also marked the highest gasoline price for the Monday before the Thanksgiving holiday weekend since 2014.

"Even if [Brent] prices fall further to $40-$50 a barrel, immediate balance of payments strains are unlikely to emerge", Capital Economics said in a report this week about the impact of the slump on Gulf countries.

Still, a price increase from current levels hinges on action from OPEC+.

Oil closed a volatile day back in negative territory, weighed down by uncertainty over OPEC's appetite for curbing output as the rising dollar and renewed trade tensions diminished crude's appeal.

Saudi Energy Minister Khalid al Falih on Thursday said the kingdom's output this month would of 10.6 million barrels per day.

The downward pressure comes from surging supply and a slowdown in demand-growth which is expected to result in an oil supply overhang in 2019. "Rather, we hold strong conviction that current prices for Dec19 WTI-Brent at $-8.8/bbl provides an attractive opportunity to play our view on relative global supply/demand dynamics, with a potential for a significant widening below $-15/bbl".

What will the demand scene in India be next year? .

Those levels are up around 0.5 million bpd - equal to 0.5 percent of global demand - from October and more than 1 million bpd higher than in early 2018, when Riyadh was curtailing production together with other OPEC members. Amid slower demand growth, we expect a near-term upside risk to our demand due to a pre-election demand surge in India in Q1 of 2019 and a possible de-escalation of the trade dispute between the United States and China.

Trump may try to convince bin Salman and Russia President Vladimir Putin of his case to keep oil prices low at the G20 summit in Buenos Aires, Argentina, later this week.

Like this



29 November 2018
Sydney Weather: Storms Hit
She was treated at the scene by paramedics and has been taken to Royal North Shore hospital in a serious but stable condition. More than 95mm of rain had fallen at Observatory Hill in Sydney's CBD by 7.50am - eclipsing the November average of 83.8mm.

29 November 2018
Woman, Baby Daughter Killed By Grizzly Bear At Remote Cabin
In a statement, the Yukon Department of Education said Ms Theoret would be missed by staff and students. Roesholt told the authorities said he had spent Monday morning and afternoon trapping away from home.

29 November 2018
Huawei Mate 20 Pro confirmed to launch on November 27 in India
The Mate 20 RS also comes in 8GB RAM variant with 512GB storage which has been kept at €2,095 (Rs 178,000 approximately). As you would expect from a 2018 flagship, the Mate 20 Pro display is HDR10 compliant and covers the DCI-P3 color space.

29 November 2018
Not Upset With Ranveer Singh & Deepika Padukone: Anil Kapoor
Ranveer is wearing a golden and cream coloured sherwani and Deepika is wearing same colored sari with heavy jewelry. Meanwhile, DeepVeer will be hosting their third reception on December 01 which will be for their industry friends.

29 November 2018
Pompeo says downgrading U.S. ties to Saudi Arabia would be mistake
The government of Saudi Arabia has been bombing and starving the Middle East's poorest country for about three years, now. The Yemen conflict has triggered the world's worst humanitarian crisis, with the country now on the brink of starvation .

29 November 2018
Mississippi: Sen. Cindy Hyde-Smith defeats Mike Espy
Hyde-Smith's camp painted Espy as a corrupt politician, highlighting his federal corruption indictments when he served as U.S. In the final weeks of the runoff, Ms Hyde-Smith's campaign said the remark about making voting hard was a joke.

28 November 2018
Apple’s Cyber Monday Deals Offer Discounts On iPhones & MacBooks
Cyber Monday deals don't last very long, so it's best to shop early to get the exactly what you need for everyone your list. Still cheaper than Apple's latest iPhone model, but you'd be unwise to ignore this if memory is your sticking point.

28 November 2018
Margaret Atwood announces sequel to The Handmaid's Tale
Atwood confirmed the news to excited fans in a tweet Wednesday morning. EW has learned that the book will not be connected to the TV series.

28 November 2018
Elon Musk Says There's a 70% Chance He'll Move to Mars
Musk also mentioned in the interview that there was a 70% chance that he would take a SpaceX rocket to Mars someday. Musk may have other reasons to want to leave Earth though - he's now being sued in two separate cases.

28 November 2018
Tiger Woods, GOLFTV sink exclusive global content partnership
As you look at anyone who has ever played this game, that is the most hard thing to do. Sharing his views on Tiger's comeback this year, Dr.