Posted on 06/03/2024 8:05:00 AM PDT by Miami Rebel
Move to phase out voluntary cuts depends on market conditions
Oil futures headed lower on Monday as traders assessed a decision by the OPEC+ to extend cuts by the group into 2025 but to begin unwinding some additional voluntary reductions later this year.
West Texas Intermediate crude CL00, -2.69% for July delivery CL.1, -2.74% CLN24, -2.69% was down $2, or 2.7%, to $74.94 a barrel on the New York Mercantile Exchange.
August Brent crude BRN00, -2.38% BRNQ24, -2.43%, the global benchmark, fell $1.72, or 2.1%, to $79.39 a barrel on ICE Futures Europe.
July gasoline RBN24, -2.12% declined by 2.1% to $2.3676 a gallon, while July heating oil HON24, -2.37% fell by 2.1% to $2.335 a gallon.
Natural gas for July delivery NGN24, 3.59% traded at $2.741 per million British thermal units, up 6% after losing 6.7% last week, according to Dow Jones Market Data.
Although the Organization of the Petroleum Exporting Countries and its allies at a Sunday meeting agreed to extend production cuts, “it also set a date to start bringing back oil into the markets this year,” said Lukman Otunuga, manager for market analysis at FXTM.
“This decision comes at a time when uncertainty over China’s demand outlook has weighed on the global commodity. The prospect of OPEC+ phasing out some of the production cuts may cap oil prices down the road if the demand outlook fails to improve.”
OPEC+ said eight countries, including Saudi Arabia, would extend a suite of voluntary production cuts totaling around 2.2 million barrels a day that had been due to expire at the end of June.
The cuts will remain in effect through September but will then be slowly reduced each month, although the producers said the phaseout could be slowed or reversed at any time if warranted by market conditions.
(Excerpt) Read more at marketwatch.com ...
Filled up at $2.899 at Sam’s Club in Spartanburg SC yesterday.
Two things worked in our favor...SC’s lower gas taxes and Sam’s membership. Was seeing $3.159 at nearby stations.
I guess FJB has saved us...
SC always has the lowest prices on the east coast.
We’re at somewhere between $3.39 and $3.79 here in NH and in places in the Adirondacks in NYS. NY is high.
High add on taxes.
WTI has been at the lower end of the trading range for a while.
Demand will be very tight into the second half of the year. Staying long…..
We’re in NC...but I pushed to the last 25 miles (per the gauge) to get to Sam’s in SC. With a 32 gallon tank, it makes a difference.
Still, your $3.39 isn’t that bad compared to the $3.15 I was seeing at other SC stations. Isn’t it over $5 in California?
I’d much prefer the $2/gallon with Trump LOL.
It would be a good idea for people who use home heating oil to watch prices and be ready to order should they drop much or show signs of spiking.
People need to be well stocked up for whatever happens this fall. My own gut feeling is that we’ll be OK until Sept. In Sept things are going to get dicey.
Come election day, we need to be ready to hunker down because no matter who wins, the people lose.
If Trump wins, the left will loose their minds and 2016n will look like child’s play.
If dems win, they have 4 years of unfettered ability to finish destroying this country. They will pull out all the stops because there will be no one to stop them.
Out west IS high.
Yeah, I like a lot more about everything under Trump. Gas prices were a big one.
Why are they helping FJB?
Because every foreign country wants a pliable America.
Market close: Dow falls 115 points following PMI (Purchasing Managers’ Index) print
Julie Hyman and Jared Blikre
Mon, Jun 3, 2024, 4:14 PM EDT
https://finance.yahoo.com/video/market-close-dow-falls-115-201456480.html
Since when has OPEC spelled its name with a plus at the end?
From the US Energy Information Administration:
In 2016, largely in response to dramatically falling oil prices driven by significant increases in U.S. shale oil output, OPEC signed an agreement with 10 other oil-producing countries to create what is now known as OPEC+. Among these 10 countries was the world’s third-largest oil producer in 2022, Russia, which produced 13% of the world total (10.3 million barrels per day [b/d]).
[Others include Mexico, Kazakhstan, and Oman.]
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