Published: Fri, April 20, 2018
Global Media | By Derrick Guzman

Crude Oil Pulls Up Short Of USD70 Wall

Crude Oil Pulls Up Short Of USD70 Wall

Earlier, Saudi Crown Prince Mohammed bin Salman said he wants long-term cooperation with Russian Federation to stabilize oil prices. While demand has yet to catch up to elevated supplies, rebounding economies in Europe and steady economic growth in the US could prompt more upside for oil this year.

Mr Tran pointed to the "wealth disparity" among Opec members such as Venezuela and Nigeria which required a much higher breakeven price for oil on a fiscal basis, necessitating cuts to remain in place for much of the year.

In briefings in recent weeks, senior Saudi officials have conveyed their desire to see crude prices at around $80 or even $100 a barrel, in part due kingdom's planned IPO of Saudi Aramco, according to a report from Reuters, which cited industry sources ( In early morning deals, oil surged to summits last seen in November 2014 before paring gains. Saudi Arabia ran budget deficits that were unthinkable before 2014, and its breakeven budget price is said to be upwards of $80 oil.

According to the Weekly Petroleum Status Report, U.S. commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, of the week ending April 13, decreased by 1.1 million barrels from the previous week. Even at above-$70 oil now, Saudi Arabia is reportedly aiming much higher and would even let oil prices rise to as much as $100 a barrel.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. "If the idea is to get a ton of money in the door now, then they're probably doing the right thing", Stuart said.

The oil market has been supported by concerns about geopolitical tension and supply disruptions in crude-producing nations. "The question is at what point do they become uncomfortable with higher prices?"

Russian Energy Minister Alexander Novak said there were no concrete plans on long-term cooperation yet, while new proposals for cooperation will be discussed during an OPEC ministerial committee in Jeddah.

After losses for a number of years, US oil producers may finally be able to reward their shareholders with positive returns as the country emerges victorious from a market share battle that the Middle East thought it would win.

"Politics plays its role of course", Andrey Polischuk, energy analyst at Raiffeisen Centrobank in Moscow, told Bloomberg.

Crude futures prices rose to fresh three-year highs on Thursday, as a sharp stock draw in the U.S. and signals that OPEC could continue production cuts into next year continued to add bullish momentum to the market.

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