Oil edges up as Saudis cut supplies to US, but global glut remains | Reuters
By Henning Gloystein | SINGAPORE SINGAPORE Oil prices edged up on Friday, supported by a fall in Saudi exports to the United States, but overall markets remained under pressure on the back of a world market awash with fuel.Prices for front-month Brent crude futures LCOc1, the international benchmark for oil, were at $50.66 per barrel at 0027 GMT, up 10 cents from their last close.
By Henning Gloystein
SINGAPORE Oil prices edged up on Friday, supported by a fall in Saudi exports to the United States, but overall markets remained under pressure on the back of a world market awash with fuel.Prices for front-month Brent crude futures LCOc1, the international benchmark for oil, were at $50.66 per barrel at 0027 GMT, up 10 cents from their last close. In the United States, West Texas Intermediate (WTI) crude futures CLc1 were up 12 cents at $47.82 a barrel.Traders said the slight lift in prices came as a report that Saudi Arabia's crude exports to the United States in March would fall by around 300,000 barrels per day (bpd) from February, in line with OPEC's agreement to reduce supply.
The United States imported about 1.3 million bpd of Saudi oil in February, according to U.S. Energy Information Administration data.In the United States, overseas oil suppliers like Saudi Arabia have to compete against rising shale drilling, which has pushed up U.S. oil production C-OUT-T-EIA by over 8 percent since mid-2016 to more than 9.1 million bpd.
To other major consumer regions, however, Saudi exports remain high despite an effort led by the Organisation of the Petroleum Exporting Countries (OPEC), and supported by other producers including Russia, to cut output by almost 1.8 million bpd during the first half of the year to rein in a global supply glut.Ship chartering and trading data in Thomson Reuters Eikon shows that OPEC shipments to Asia, the world's biggest and fastest growing oil consuming region, were at 17.6 million bpd in March, up over 5 percent since January, when the cuts officially started, in a sign that OPEC is shielding its main customers from the supply reductions.
Unless OPEC extends the curbs beyond June or makes bigger supply reductions, traders say oil prices are at risk of falling further."The market is keen to see further progress on production cuts to alleviate the still growing stockpiles," ANZ bank said on Friday. (Reporting by Henning Gloystein; Editing by Joseph Radford)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.