TSX jumps with energy stocks in wake of OPEC deal

24 June, 2018, 14:56 | Author: Elaine Woods
  • OPEC strikes deal to boost oil production | TheHill

Saudi Energy Minister Khalid Al-Falih told reporters after the meeting that the deal was to make a "nominal" increase of 1 million barrels per day, Bloomberg News reported. "We're taking our breath and focusing on the oil market", said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, NC.

The Organization of the Petroleum Exporting Countries said in a statement that both member and non-member oil producing countries "decided that countries will strive to adhere to the overall conformity level, voluntarily adjusted to 100 percent". U.S. light crude was also $2 higher at $67.60.

USA crude rose US$3.04, or 4.6 per cent, to US$68.58 a barrel, getting an additional boost after a surprise large drawdown at the storage hub at Cushing, Oklahoma.

Energy stocks jumped 3.6 per cent with Canadian Natural Resources Ltd. increasing 5.3 per cent and Crescent Point Energy Corp. finished up 5.2 per cent.

USA crude rose 4.76 per cent to $68.66 per barrel and Brent was last at $75.50, up 3.35 per cent on the day.

Since its December 2016 oil production-cut deal came into effect, the Organisation of Petroleum Exporting Countries (OPEC) has seen crude oil prices more than double, following the market rebound from the lows of early 2016.

The idea to bump output has been advocated by Saudi Arabia and Russian Federation, which sought to alleviate high prices through increased supply on the market without creating a glut.

"Each country which has produced less (than its allocation) can produce more".

Al-Falih has warned the world could face a supply deficit of up to 1.8 million bpd in the second half of 2018 and that OPEC's responsibility was to address consumers' worries.

WC FIFA 2018: Sweden wins against South Korea by VAR penalty
Centre-back Hummels said Germany had ignored the warnings from their shaky 2-1 win over Saudi Arabia in their final warm-up game. They should have equalised in the dying seconds but Hwang Hee-chan put a free header wide, spurning the Koreans' best chance.

The Best Tweets Responding to Homeland Security Secretary Kirstjen Nielsen's Lies. Period
The family separation issue has emerged as one of the most inflammatory issues in a legislative fight to pass immigration reform. Is this the best way to handle families entering the US illegally, seeking asylum? That's when they were separated.

Vladimir Putin invites Kim Jong Un to Russian Federation in September
He added that Mr Trump and Mr Kim had a "blunt conversation" about the changes needed for North Korea to rejoin the world community.

Trump weighed in again after Friday's OPEC decision was announced, tweeting: "Hope OPEC will increase output substantially". The minister said the difference between that amounts to "a little bit less than 1 million barrels".

"As a group we can meet the 100 percent compliance".

Further to OPEC being blindsided by the rise of shale oil, the global "Easy-Money" environment perpetuated by central banks - namely the US Fed's Quantitative Easing (QE) program - has also played a key role in the Shale supply-boom.

The group started withholding supply in 2017 and this year, amid strong demand, the market tightened significantly, triggering calls by consumers for higher supply.

A large decline in inventories at the storage hub of Cushing, Oklahoma helped trigger the rally, traders said.

State oil company Saudi Aramco had anticipated this week's decision and was already ramping up output, Al-Falih said.

"Yields.(are) still lower from a couple of weeks ago and that's because of the uncertainty on the US trade situation with China", said Lou Brien, market strategist at DRW Trading in Chicago.

But the real increase will be smaller because several countries that recently underproduced oil will struggle to return to full quotas while other producers will not be allowed to fill the gap.

Recommended:



Popular

Melania Trump's 'don't care' jacket in spotlight after visiting migrant children
A clothing company sold out of their charitable "I really care" jacket, which they created in response to the Melania controversy. She carefully selected a Chanel gown to wear when the Trump's hosted their first state dinner with France's First Couple.

Shock moment parents snatch baby from priest after he SLAPS crying child
A woman can be heard saying something to the priest before the man has to physically remove the baby from the priest's arms. The outraged relatives then stepped in and snatched the baby away from the priest, after watching on in shock.

President Trump threatens 20 percent tariff on European cars
That list includes roughly 160 products such as United States sunbeds, paper towels, corduroy trousers and porcelain tableware. Canada said its tariffs of up to 25% on almost $13 billion of American products will take effect on July 1.

Sampaoli not revealing Argentina XI to face Croatia
Croatia has advanced with six points from two matches in Group D, while Argentina has only one point and is facing elimination. Their latest ad featuring two of world'd greatest footballers, Cristiano Ronaldo and Lionel Messi are at the centre of it all.

Lucky Spain top Group B after win against Iran
A win against Iran will leave Spain on the brink of a place in the last 16, despite all the upheaval of the past week. With the "Fubo Premier" bundle, you will get access to all four of the World Cup soccer TV channels in most markets.

Haley blasts human rights groups for 'thwarting' reform of United Nations council
The diplomat noted that Washington's decision had dealt a powerful blow to its reputation in terms of protecting human rights. It added that the US criticism of the council for failing to make changes advocated by Washington appears "cynical".

Tunisia v England, 18 June 2018
A brace from Harry Kane , including a very late victor , carried England to a dramatic victory over Tunisia tonight. When you have very tall players it is very hard to counter them.

Phil Mickelson goes bonkers with his putter at the US Open
Shinnecock Hills has been ripping apart the world's best players all week and it all must have just gotten to Mickelson. Phil Mickelson became the talk of tonight's round in the US Open when sanctioned for putting a moving ball.

Jada Pinkett Smith & Daughter Willow Get Candid About Orgasms in New Video
"My introduction to sex was obviously walking in on you and Daddy", Willow , 17, quipped. The women then began to discuss self-love and pleasuring yourself as a woman.

Trump Gloats Over Sanford Loss, Puts Kaine On Notice
Tweeting from the plane bringing him home from Singapore, he declared Sanford "very unhelpful" in advancing his agenda. Dimitri Cherny , as well as Democrats Joe Cunningham and Toby Smith , are also running.