Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil Market Outlook: Pre-OPEC Whispers Intensify

By Matthew WellerCommoditiesOct 27, 2019 01:39AM ET
www.investing.com/analysis/oil-market-outlook-preopec-whispers-intensify-200478768
Oil Market Outlook: Pre-OPEC Whispers Intensify
By Matthew Weller   |  Oct 27, 2019 01:39AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

As OPEC’s December meeting in Vienna draws closer, the behind-the-scenes discussions on the next production level decision are intensifying as is the flow of sideways comments from the cartel’s oil ministers. In the past week, Saudi Arabia, which has ended up with lower output levels not only because of planned cuts but also because of the attack on the Abqaiq refinery, hinted that it is keen to see other members stick to their output quotas, wagging an accusatory finger at Iran and Nigeria.

During the week ahead, look out for a response from Russia which is less than keen to rein in its oil output. The CEO of Russia’s Rosneft (MCX:ROSN), Igor Sechin, made it openly clear that he is opposed to cutting production and recently indicated that Saudi Arabia should mind its own business rather than put pressure on Russia to reduce output.

Irrespective of the less-than-amicable comments, oil producers are facing stagnating demand and a build-up of reserves which may force OPEC into not only extending existing output restrictions but also adding new ones to meet slowing demand.

API WEEKLY CRUDE STOCKS

US Petroleum Products Exports
US Petroleum Products Exports

U.S. crude oil production is now running at an all-time high of 12.4M b/d, which is partially catering to slightly higher domestic demand but is also being increasingly exported abroad. According to the EIA the gradual increase in U.S. exports will mean that the U.S. will become a net exporter of petroleum in the last quarter of this year.

The API stocks on Tuesday and EIA weekly petroleum reserves on Wednesday will show if the domestic U.S. stock levels are continuing to build as they did in September and October or if increased exports and domestic demand are managing to balance out the U.S. oil market.

Expectations for U.S. GDP data on Wednesday are for a slight slowdown from the 2% growth in the second quarter, which tallies with other economic indicators over the last few months. A slowdown in domestic growth will not be supportive of the oil market and may require a re-think on domestic production levels.

Crude Oil Stocks & Days Of Supply
Crude Oil Stocks & Days Of Supply

BP Earnings Results On Tap

BP's (NYSE:BP) results on Tuesday will provide more information on how badly oil’s dip low $60 in the last quarter affected the company’s upstream operations. Hurricane Barry slowed down production in the Gulf of Mexico during Q3 as did maintenance activities and seasonal turnaround. Lower prices would have worked in favor of BP’s downstream business. But weaker demand for petroleum products caused by an overall weakening of the global economy is also likely to have affected BP’s refining operations.

Original Post

Oil Market Outlook: Pre-OPEC Whispers Intensify
 

Related Articles

Oil Market Outlook: Pre-OPEC Whispers Intensify

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Srinivasa Srinivasa
Srinivasa Srinivasa Oct 28, 2019 12:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nice sir.
lubomir zavodny
lubomir zavodny Oct 27, 2019 4:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thank you
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email