OPEC+ production cut was aimed at speculators - Bloomberg

Oil: OPEC output cut sees counter surprise in weak U.S. manufacturing

April 3, 2023 1:57 PM EDT

By Barani Krishnan

Investing.com — OPEC+ appears to have hit bull's-eye with its skilfully orchestrated move to recapture $80 and above for a barrel. The oil cartel, however, isn't the only one capable of delivering a surprise: U.S. factories are too, with a weaker-than-expected manufacturing report for March.

As crude prices bobbed around Monday with a gain of nearly $5 a barrel, or 6% — the largest in a year — the so-called ISM manufacturing report countered OPEC+'s surprise production cut that triggered inflation jitters. The preliminary ISM reading... More

Opec+ Wants To Make Oil Speculators Think Twice With Shock Cut - Bloomberg

April 3, 2023 12:38 PM EDT

Opec+ Wants To Make Oil Speculators Think Twice With Shock Cut - Bloomberg

Saudis intend to inflict pain on short-sellers of crudeProduction cut was finalized in tight circle over several days... More

Why is OPEC cutting oil output?

April 3, 2023 10:56 AM EDT

LONDON (Reuters) - OPEC and its allies, including Russia, agreed on Sunday to widen crude oil production cuts to 3.66 million barrels per day (bpd) or 3.7% of global demand.

The surprise announcement helped push up prices by $5 per barrel to above $85 per barrel.

Here are the main reasons why OPEC+ is cutting output:

CONCERNS ABOUT WEAK GLOBAL DEMAND

Saudi Arabia has said voluntary output cuts of 1.66 million bpd on top of the existing 2 million bpd cuts were made as a precautionary measure aimed at supporting market stability.

Russian deputy prime minister Alexander Novak said... More

OPEC+ supply cut to drive oil names, natgas to lag - Citi

April 3, 2023 10:07 AM EDT

Spiro Dounis of Citi shared his thoughts on what he called "a surprise preemptive 1.6 mbpd oil output cut" announced by OPEC+ earlier today.

In his latest note on the oil and gas sectors, the analyst said Citi traders expect "oil names to drive performance today with natural gas names... More

OPEC+ cuts put $100/bbl oil back in sight

April 3, 2023 9:19 AM EDT

By Muyu Xu, Joyce Lee and Ahmad Ghaddar

SINGAPORE/SEOUL/LONDON (Reuters) - Surprise new cuts to the OPEC+ group's output targets could push oil prices towards $100 a barrel, setting the scene for another clash with the West grappling with higher interest rates, analysts and traders said on Monday.

The decision signals unity within OPEC+ despite Washington's pressure on its Gulf allies to weaken their ties with Moscow, while also undermining the West's efforts to limit Russia's oil income.

Oil prices jumped over 6% on Monday after the Organization of the Petroleum Ex porting Countries and their allies... More

ExxonMobil (XOM), Other Oil Stocks Surge After OPEC+ Announces Output Cuts

April 3, 2023 8:17 AM EDT

(Updated - April 3, 2023 8:18 AM EDT)

ExxonMobil (NYSE: XOM), Other Oil Stocks Surge After OPEC+ Announces Output Cuts

Saudi Arabia and other OPEC+ oil producers announced further oil output cuts of around 1.16 million barrels per dayWIT +6.6%XOM +4.3%Marathon Oil (NYSE:... More

Explainer-Oil price surge changes ECB narrative only at the margins

April 3, 2023 7:15 AM EDT

FRANKFURT (Reuters) - An oil production target cut announced by some of the world's top exporters is bad news for the European Central Bank as it tries to bring down inflation but will not fundamentally alter the policy outlook, at least for now.

The following examines how higher crude prices - which jumped around 5.5% on Monday following the OPEC+ decision - could impact ECB policy.

IS AN OIL PRICE SURGE INFLATIONARY?

A spike in energy prices was the main driver of inflation over the past year, but energy is now a drag on prices as... More