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Let s talk oil.
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Lucky03
Elite |
17-Apr-2016 20:50
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This article is more specific on the impact of the strike at Kuwait. In fact, Kuwait is one of those that had voiced reluctance to even freeze output .
Kuwait Crude Output Drops 60% as Oil Workers Strike Over Pay By Anthony Dipaola - 17 Apr 2016, 2:11:05 PM Kuwait?s crude production tumbled by 60 percent and its refineries scaled back operations as the state oil company took emergency measures to cope with a labor strike. The OPEC member?s production dropped to 1.1 million barrels a day on Sunday, Saad Al-Azmi, deputy chief executive for finance and spokesman at Kuwait Oil Co., said in posts on Instagram and Twitter. The Persian Gulf nation pumped 2.81 million barrels a day in March. Kuwait Petroleum Corp., the parent company for KOC and other operating units, will continue providing fuel to the local market and can meet demand from international customers for exports, it said on Twitter. Kuwait is among Middle Eastern oil producers that are cutting spending and benefits to plug holes that the oil-price drop of nearly 30 percent in the past year has punched in government budgets. Prices have fallen as rising output from the Organization of Petroleum Exporting Countries and other suppliers has created a global glut. Kuwait produced 2.81 million barrels a day last month, making it OPEC?s fourth-largest member, while worldwide supply exceeded demand by 1.6 million in the first quarter, according to the International Energy Agency. ?Shocking? Decline The plunge in Kuwait?s output ?is just shocking,? Edward Bell, a commodities analyst at Dubai-based bank Emirates NBD PJSC, said Sunday by phone. ?That would take care of the surplus right there. There could be quite a bit of upside in oil tomorrow.? Oil ministers from producing countries such as Saudi Arabia, OPEC?s largest member, and Russia are meeting in Doha Sunday to discuss a proposal to freeze oil output to help prop up prices. Brent crude closed at $43.10 a barrel Friday, posting gains of about 25 percent since the freeze was proposed in mid-February. News of a possible deal from that meeting could be overshadowed by the impact of Kuwait?s reduced production, Bell said. Kuwait?s oil and gas refineries are processing 520,000 barrels a day of crude, said Khaled Al-Asousi, spokesman for Kuwait National Petroleum Co. The state-owned refinery unit reduced processing rates at the country?s three oil plants, which have a combined capacity of about 900,000 barrels a day, due to emergency measures and because less supply is available from KOC, he said. Members of the 13,000-strong Oil & Petrochemical Industries Workers Confederation are protesting cuts in their wages and benefits, Saif Al Qahtani, the union?s leader, said by phone Thursday. About 6,000 workers walked off the job when the strike began Sunday, CNBC Arabiya cited him as saying. Union officials couldn?t be reached for comment on Sunday. Natural gas production stood at 620 million standard cubic feet a day, Al-Azmi said. Kuwait?s refineries process crude into refined products such as gasoline, diesel and jet fuel for domestic use and export. Negotiations with the strikers were continuing, Mohammed Al-Shatti, Kuwait?s representative to OPEC, said in Doha.
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risktaker
Supreme |
17-Apr-2016 20:45
Yells: "Posts are opinions. Do not take it as investment advise " |
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Sell on news bro if deal ever made.... also remember there is a over supply situation... and if price goes up... shale production will start ramping up.... oil price will not benefit in long term view.... unless US ban export of oil...and stop all shale production....
45 is max price for oil... now 40... with an upside of 5 dollars... i would rather short than to long...
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Observers
Elite |
17-Apr-2016 20:17
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I have a feeling all those claims that USD production cost in the Middle East being in the single digits are actually bluffs. Maybe only for their most productive of oil fields. Swimming naked?
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sharenewbie0301
Veteran |
17-Apr-2016 19:57
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Why??
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Lucky03
Elite |
17-Apr-2016 19:40
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Looks like with or without the output freeze, oil price will rise.
Kuwait oil workers' strike sees output plunge AFP News 12 mins ago Thousands of Kuwait's oil workers began an open-ended strike on Sunday to protest plans to cut their wages, action which saw the emirate's crude production plunge. A spokesman for the Kuwait Oil Co. (KOC) Saad al-Azemi said on Twitter that "average production reached 1.1 million" barrels in Kuwait on Sunday. Daily production in Kuwait, OPEC's fourth largest producer, is normally around 3.0 million barrels per day. Azemi also said natural gas production was at 620 million cubic feet, down from Kuwait's daily average of over 1.3 billion cubic feet. The strike comes as world oil producers gather in Qatar to negotiate an output freeze to boost prices. "Thousands of workers began their strike," the oil workers union chief Saif al-Qahtani told AFP, adding that production was partially halted without clarifying which sites had been affected. "Observed since 7:00 am (0400 GMT), this open-ended strike will continue until the workers' demands are met," Qahtani said. On Saturday, the union turned down an appeal from Kuwait's acting oil minister, Anas al-Saleh, to call off the strike. Hit by the sharp drop in crude prices on world markets, Kuwait is introducing a new payroll scheme for all public employees and wants to include the country's 20,000 oil workers, which would mean an automatic cut in wages and incentives. As the strike began, Kuwait Petroleum Corp spokesman Sheikh Talal Khaled al-Sabah said that the national oil conglomerate had activated an "emergency plan" to ensure that local and international markets were not affected by the walkout. "Export operations are going ahead as planned and (KPC) is capable of responding to major international market demands, based on agreements with clients," he said in a statement published on the KUNA news site. The plan ensures that all petrol stations will continue to be supplied as well as Kuwait's international airport and companies operating at the facility, he said. He urged Kuwaitis "not to listen to rumours that the strike has affected the needs of the local market," adding that Kuwait's "reserves of gasoline and petrol derivatives is enough to meet the country's demands for 25 days and strategic reserves could suffice for 31 more days." KPC had offered to suspend all spending cuts if the union agreed to join a committee to negotiate a settlement but said that workers had boycotted negotiations called for Thursday by the social affairs and labour ministry. The union is also protesting plans to privatise parts of the oil sector. |
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Lucky03
Elite |
17-Apr-2016 19:36
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Will that mean they will kick Iran out of OPEC ?
New Doha oil deal draft says all OPEC members must join - sources Reuters 31 mins ago DOHA (Reuters) - A new draft of a deal to freeze oil output that is to be agreed later on Sunday in Doha has a line saying all OPEC members should be part of the agreement, industry sources said. The change appears to be a major obstacle for clinching a binding deal, given that OPEC member Iran had decided not to send representatives to the meeting. |
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HVRRVH
Elite |
17-Apr-2016 18:16
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Saudi and Iran at logger head the main obstacle to any agreement according to cnbc's latest update. I hold no position in any oil stock as no confidence in the talk. However, if they strike an agreement I will buy an oil stock at open matching tomorrow! | ||||||||||||||||||||||||
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bishan22
Supreme |
17-Apr-2016 16:16
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Oil producing countries meeting in Doha on Sunday appeared close to agreeing on an output freeze to prop up crude prices, the first such deal in 15 years, official sources told Reuters. |
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Qanghoo
Supreme |
17-Apr-2016 14:05
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But Iran up, demand up, shale down = all neutralised?  So, no more excess pumping liao?  In other words, for so long as all agree not to pump more, then at least current px shd find support.  N if China+India demand increase more than projected, px  cld up one or two notches?  I' m quite optimistic that China growth has bottomed out n cld surpris on the upside this yr.  Seems also demand from India cld be increasing more rapidly.  All  in all, there appears some tentative grds to be positive.  So, if today Doha celebrates, we open champagne tmr !!!!!
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halleluyah
Supreme |
17-Apr-2016 12:15
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Yup same as wat i see bt oil px wil b more stabilize at certain px if freeze deal done.
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1oopls
Master |
17-Apr-2016 12:09
Yells: "I love my evil cute cute darling" |
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HOw u interpret this? Ok, there will not be a production cut, thats almost confirmed for now. 90% chance there will be a production freeze that will not exceed January supply level, almost confirming January is the turning point. Iran will take some time to reach its quota, hence oversupply reality is still real.  Personally i think oil will be bullish direction but in a slow and gradual pace. There is still uncretainty, no doubt. But the agreement the point is that they would want the recovery of oil market. It will be gradual as they still want to protect their self interest.  |
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spore1
Supreme |
17-Apr-2016 12:07
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I view this is not going to make much diff with Freezing output.The over supply issue is the main critical pro.Unless they HV some positive diss for output cut, if not think oil price may still go lower. | ||||||||||||||||||||||||
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risktaker
Supreme |
17-Apr-2016 11:57
Yells: "Posts are opinions. Do not take it as investment advise " |
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Doesnt matter if freeze or not.... freeze slowly drop....no freeze will be like jumping off a cliff..
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1oopls
Master |
17-Apr-2016 11:45
Yells: "I love my evil cute cute darling" |
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Draft Doha agreement would freeze oil output until October3 Mins AgoReuters2
SHARES
   
A draft agreement among oil producers meeting on Sunday in Doha says average daily crude oil production in each month would not exceed the level recorded in January this year, according to a copy of the draft seen by Reuters. The freeze would last until Oct. 1 this year, and producers would meet again in October in Russia to review their progress in engineering " a progressive recovery of the oil market," the draft reads. Final agreement has not been reached on the draft, but several senior sources in countries' oil ministries said they were optimistic that a deal would be reached. Producers would continue to develop the process of consultation between them on the best ways to bolster the oil market, and the deal would be open for other states to join, the draft says. OPEC member Iran has said it will not participate in Sunday' s meeting as it could not accept proposals to freeze its production. |
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1oopls
Master |
17-Apr-2016 11:39
Yells: "I love my evil cute cute darling" |
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Iran' s central banker dismisses idea of output cut6
SHARES
COMMENTSStart the Discussion
Justin Solomon | CNBC
Doha, Qatar prepares to host the Oil Producing Countries Ministerial Meeting on Aug. 17th, 2016.
Iran' s top central banker is adding to growing doubts about an agreement to freeze output at a meeting of oil producers in Doha, Qatar on Sunday. Ahead of a pivotal meeting that may determine the near-term outlook for crude prices, Iran on Saturday announced that it would not participate in the conference. The country, still trying to recover from Western sanctions, is seen trying to preserve market share, and has steadfastly resisted any suggestions that Iran should freeze or curb output in order to prop up prices. On the sidelines of an International Monetary Fund meeting in Washington, D.C., Valiollah Seif, head of Iran' s central bank told CNBC that asking Iran to freeze output right now is unfair.   " What Iran is doing right now is trying to get back and secure its share of the market," Seif said, adding that " what Saudi Arabia is asking Iran to do is not a very fair [or] logical request." On several occasions, the leadership of Saudi Arabia has repeatedly said they would agree to an output freeze as long as Iran did too. Currently, analysts believe the two rivals are unlikely to reach a near-term consensus. &lsaquo
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Seif told CNBC that Iran, as a member of OPEC, has a quota of 2.4 million barrels per day. Under sanctions for its nuclear program, that quota went unfilled. At the same other members used their output to fill the gap. " And right now, Iran is trying to just take back the quota it is entitled to get, so we are going to do that and this is the main direction of our economy," Seif added. He went as far as to say other OPEC members are to blame for the sharp fall in oil prices, which are down more than 37 percent year to date. " This request is coming from those countries which are responsible for this surplus production in the market, because they have exceeded output beyond their quota, and I think this is not fair," Seif added. He cautioned that this was his personal viewpoint, and the ultimate decision lies with Iran' s oil minister, Bijan Zangeneh.  |
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1oopls
Master |
17-Apr-2016 11:34
Yells: "I love my evil cute cute darling" |
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Iran winner. Freeze, Iran win, Production increase it doesn' t care, got its sanction lifted |
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teeth53
Supreme |
17-Apr-2016 11:21
Yells: "don't learn through life, learn to grow with life " |
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Iran talk oni when theur TP of 4m barrel is reach...:)
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risktaker
Supreme |
16-Apr-2016 20:51
Yells: "Posts are opinions. Do not take it as investment advise " |
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Saudis to US: Pass this bill, we'll sell $$ assets
http://www.cnbc.com/id/103553410 Iran won't attend Doha oil freeze talks: Sources http://www.cnbc.com/id/103553580 Read this 2 articles.... |
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risktaker
Supreme |
16-Apr-2016 20:47
Yells: "Posts are opinions. Do not take it as investment advise " |
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http://www.zerohedge.com/news/2016-04-15/saudi-prince-drops-friday-night-bomb-no-deal-without-iranwe-are-selling-every-opport
Pls read this for those who still long oil becos of someone call... |
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risktaker
Supreme |
16-Apr-2016 20:23
Yells: "Posts are opinions. Do not take it as investment advise " |
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U have no idea haha
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