• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Energy

Oil rally stumbles on OPEC+ uncertainty

4 years ago
in Energy, highlights, Home, home-news, latest News, Markets
2 min read
0 0
0
Oil field scene, the evening of beam pumping unit in silhouette

Oil field scene, the evening of beam pumping unit in silhouette

91
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

A rally that pushed oil prices higher than they were immediately before the pandemic struck has faltered on uncertainty around OPEC+ and a stronger dollar.

Hedge fund oil buying reflected the changing fortunes of oil, turning from net buyers to net sellers in the six most popular oil and fuel contracts, Reuters’ John Kemp reported in his latest weekly column. That put an end to 15 straight weeks of buying, Kemp noted.

Besides the obvious factors that affect oil prices, such as the upcoming OPEC+ meeting that could result in an agreement to boost production, which would dampen prices, there was one new factor: the potential for worsening U.S.-Saudi relations.

The Biden administration last week released a report that implicated the Saudi government in the murder of journalist Jamal Khashoggi, which would be enough to sour bilateral relations, especially after the federal administration announced sanctions on a former senior Saudi intelligence officer said to be involved in the murder and the Kingdom’s Rapid Intervention Force.

“Those involved in the abhorrent killing of Jamal Khashoggi must be held accountable. With this action, Treasury is sanctioning Saudi Arabia’s Rapid Intervention Force and a senior Saudi official who was directly involved in Jamal Khashoggi’s murder,” Treasury Secretary Janet Yellen said.

But more sanctions may be coming, and these may target none other than Saudi Arabia’s de facto ruler, Crown Prince Mohammed, according to a Reuters report. The report cited a UN human rights investigator who said it was “extremely dangerous” on Washington’s part to have named Mohammed as involved in the murder but without sanctioning him.

This is where the danger for oil prices lies, really. If the federal U.S. government decides to exit this “extremely dangerous” situation and sanction the Saudi Crown Prince, the Kingdom’s knee-jerk reaction would be to threaten the U.S. with flooding oil markets. While we’re in the world of speculation, Saudi Arabia may want to resist the knee-jerk reaction, but since there is little else it could do should U.S. sanctions reach its highest government levels, it will probably wield the oil weapon.

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

Of course, this may be precisely why Washington has not sanctioned Prince Mohammed yet and may not sanction him at all. Despite President Biden’s green energy agenda, the oil and gas industry is a major contributor to GDP and an equally major employer: more oil and gas bankruptcies will hardly be welcomed news for Washington.

Out of the world of speculation and into reality, OPEC+ is meeting later this week to discuss production. The extended cartel’s total production fell last month thanks to the deeper Saudi cuts, but these are over now, so output should begin climbing this month. The question is how high it would climb: the AFP reported earlier today internal tensions are running high in OPEC+ and might flare up at the meeting.

“The priorities are well known: Russia wants to return to normal production as quickly as possible while Saudi Arabia wants to benefit from high prices a little longer,” the AFP quoted Bjarne Schieldrop, chief analyst at commodities research firm Seb as saying.

While the oil world awaits the Thursday meeting and its outcome, Congress passed President Biden’s $1.9-trillion stimulus program and sent it to the Senate. While it has yet to receive final approval, Congress passing strengthened the U.S. dollar, which usually affects oil prices in a negative way.

Fears are also mounting that fuel demand growth in China is slowing down. Still, on the tailwind side, we’ve got a growing chorus of economist voices expecting a quick rebound for the U.S. economy, which would boost oil demand, to apply counterpressure to all the factors pressuring oil.

Source: oilprice
Via: norvanreports
Tags: COVID-19 pandemicOPEC+
No Result
View All Result

Highlights

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

Trending

Features

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

August 2, 2025

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes Parliament has adjourned...

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.