Venezuela’s falling oil supply is a major ‘challenge’ to global energy markets

US oil settles 0.6% higher at $58.61 a barrel, hits 4-month high

The power crisis in the South American country that disrupted crude exports this week could return or worsen, threatening 1.2 million barrels per day (bpd) of oil supplies, or more than one-percent of global output.

Brent and West Texas Intermediate crude oil futures reached four-month highs Thursday, as production cutbacks by Opec+, along with USA sanctions on Iran and Venezuela, tightened global supplies. A meeting between President Donald Trump and President Xi Jinping to sign an agreement to end their trade war won't occur this month and is more likely to happen in April at the earliest, three people familiar with the matter said.

"Crude oil continues to grind higher.in response to ongoing production cuts from the OPEC+ group of producers as well as another (output) slump from a blacked-out Venezuela", said Ole Hansen, head of commodity strategy at Denmark's Saxo Bank.

According to Bloomberg, in its monthly report, the Organization of Petroleum Exporting Countries cut forecasts for world oil demand and boosted projections for non-OPEC supply, particularly in the second half of the year.

The Paris-based IEA said the market could show a modest surplus in the first quarter of 2019 before flipping into a deficit in the second quarter by about 0.5 million bpd.

Since 2016 the OPEC+ nations have agreed on a series of output limits in an effort to counteract the collapse of oil prices in 2014 caused by overproduction.

"Oil demand concerns are overdone", Goldman Sachs said in a note on Friday.

Still, oil prices could also come under downward pressure from an economic slowdown.

For 2020, the government said it expected United States crude oil demand to rise by 220,000 bpd to 21.03 million bpd, unchanged from previous forecasts.

But oil demand has held up well so far.

The figures revealed that, only in February, OPEC lowered crude extraction by 221,000 barrels per day compared to January, to 30,549 million barrels per day.

OPEC agreed on December 7, led by Saudi Arabia's requests to cut output to prop up prices, to reduce output by 800,000 barrels per day, to be matched by another 400,000 barrels-per-day production cut by some non-OPEC nations led by Russian Federation, starting January 1.

Related News:

  • Buccaneers trade DeSean Jackson to the Eagles

    Buccaneers trade DeSean Jackson to the Eagles

    What that means for Nelson Agholor remains to be seen, as the Eagles could decide to move on from his $9.5 million salary cap hit. Jackson's contract calls for him to make $10 million next year but he has no guaranteed money remaining on his deal.
    Daylight Saving Time Starts This Weekend. But Why Do We Spring Forward?

    Daylight Saving Time Starts This Weekend. But Why Do We Spring Forward?

    So, should we still schedule our lives around daylight saving time? People also report feeling disoriented and unproductive. State lawmakers in ME are considering a similar change, as well as possibly moving the state to the Atlantic Time Zone.
    United States  trade deficit hits 10-year high despite tariff war

    United States trade deficit hits 10-year high despite tariff war

    Removing trade in services, the goods deficit was US$891 billion, 10-per-cent higher than in 2017, and also an all-time record. The retaliatory tariffs Trump provoked from China also hit major U.S. agricultural exports such as soybeans.
  • O'Rourke Has 'Crazy' Hand Movements

    O'Rourke Has 'Crazy' Hand Movements

    Members of the group have protected O'Rourke's secret for decades, reluctant to compromise his political viability. "Well, I think he's got a lot of hand movement", the president told reporters at the White House.
    Where to find Pi Day deals around San Diego

    Where to find Pi Day deals around San Diego

    It's March 14, also known as 3/14, and perhaps better known as 3.14 and the beginning numbers of the mathematical constant Pi. If you are looking for an in-store deal, being a " 7Rewards " member gets you a slice of pizza for only 50 cents.
    Boeing Stock Falls as Trump Grounds 737 MAX

    Boeing Stock Falls as Trump Grounds 737 MAX

    Foreign investigators examine wreckage at the scene where the Ethiopian Airlines Boeing 737 Max 8 crashed shortly after takeoff. Concern about the Max's safety seemed to be abating but returned on Sunday following the horror Ethiopian Airlines crash .
  • Raonic ends Kecmanovic run, reaches Indian Wells semi-finals

    Raonic ends Kecmanovic run, reaches Indian Wells semi-finals

    She started out the year fully confident as ever, and has carried this assurance through her matches since that time. Canadian youngster, Bianca Andreescu has made it into the final of the 2019 WTA Indian Wells Open in California .
    Pakistan’s envoy to India meets PM Imran Khan

    Pakistan’s envoy to India meets PM Imran Khan

    The Pakistan government earlier arrested the brother and son of JeM chief Masood Azhar along with 42 others affiliated with the banned terror outfits.
    Trump Grants Alabama Governor's Request For Expedited Disaster Declaration After Storms

    Trump Grants Alabama Governor's Request For Expedited Disaster Declaration After Storms

    The youngest victim was Armando Hernandez, 6, family member Sara Crisp said. "He was done and gone before we got to him". "It's been a tragic situation, but a lot of good work is being done", he told reporters at the White House.
  • Real Madrid president, Florentino Perez ready to bring back Zidane

    Real Madrid president, Florentino Perez ready to bring back Zidane

    The 1998 Word Cup victor with France has also been tipped as clear favourite to become Chelsea's new manager next season. The fall-out from there terrible is not expected to stop with Ramos as manager Santiago Solari is now facing the sack.
    Google Assistant can now book reservations on more devices

    Google Assistant can now book reservations on more devices

    Now, talking about the feature, Google Duplex is a phenomenal feature which can make a restaurant reservation on your behalf. You can see the full list of supported states by clicking the following link .
    Trade Deficit Widens to Record Level

    Trade Deficit Widens to Record Level

    December's trade imbalance worsened because United States imports rose 2.1%, while exports to other countries fell 1.9%. But while that might be of concern for Trump, many economists disagree with his emphasis on reducing the deficit.


Most liked

New Zealand mosque shooting: Terror attack suspect Brenton Tarrant appears in court
Indeed, the writer claims to have had "brief contact" with Breivik, who he says gave his "blessing" to the Christchurch attack. The Bangladesh team was on its way to the mosque, one of two sites of the shooting attack that killed at least 49 people.

Christchurch shooting: Guns used in attack were modified, says PM
Later, Ms Ardern also visited the local hospitals to inquire after the people who were injured in Friday's terror attack. He was remanded in custody and is set to reappear in court April 5. "Now is the time for change", she said.

Beto O'Rourke announces that he is running for president in 2020
Mr O'Rourke was little-known outside his hometown of El Paso until he challenged Republican Senator Ted Cruz past year . The Post's Jeff Stein asked O'Rourke's team about "his key policy priorites", and has yet to hear back.

Ryan Moore aces No. 17 at THE PLAYERS 2019
After that will come my top value plays from the $8-9K range, along with a couple of GPP flyers to consider for tournament play. Moved to May, the winners have similarly varied games, whether it was Phil Mickelson and Jason Day , or Tim Clark and K.J.

10 dead, including six kids, in 'unspeakably brutal' Brazil shooting; 17 hurt
In 2011, 12 students were killed by a gunman who roamed the halls of a school in Rio de Janeiro , shooting at them. Horacio Pereira Nunes, a retiree whose house is next to the school, said he began hearing shots around 10 a.m.

Newsom To Halt Death Penalty Executions
Ellen Kreitzberg, a death penalty expert and opponent at Santa Clara University law school in California, welcomed Newsom's move. California has not executed anyone since 2006, when Arnold Schwarzenegger was governor, the Press Association reports.

Serge Ibaka Fights Marquese Chriss as Raptors Face Cavs
G Matthew Dellavedova (concussion) missed his second straight game. He is averaging 15.2 points and 8.1 rebounds per game this season. We don't want to lose one of our guys for incidents like that.

Seoul closely monitoring N. Korea for 'missile launch,' says military
It remains unclear at this point, if the possible launch would be for a missile or a satellite rocket. The new activity was detected at a North Korean missile research center and long-range rocket site.

Weather warnings issued ahead of arrival of Storm Gareth
Icy patches, wintry showers and windy, expected Sunday night and first thing Monday giving a few travel problems. It's been said winds could reach 80mph in Northern Ireland as Storm Gareth makes its way across Britain.

China imports, exports tumble in February
The fall in exports was far bigger than the 4.8% drop forecast in a Reuters poll of economists. The United States and China have been battling over trade tariffs since a year ago .

SpaceX Crew Dragon returns from ISS
Success will also mean that "Earthy", a plush anthropomorphic doll of our planet, will be coming home from the space station. This docking maneuver-a critical part of the test flight-is something the capsule will have to do routinely in the future.

Nintendo Labo VR Kit Announced; Launches Next Month
Nintendo is also offering a Starter Kit, priced at $39.99 (about £30 / AU$57) that includes just the googles and Blaster design. The kit is the fourth in the Nintendo Labo series of craftable DIY add-ons to the Nintendo Switch , which launched past year .

Chelsea fans voice discontent with stultifying Maurizio Sarri
Sarri thought Kepa was injured, but the world's most expensive goalkeeper - a £71.6million buy from Athletic Bilbao - insisted he could play on.

Kylie Jenner becomes youngest self-made billionaire
Kylie Cosmetics' revenue climbed nine per cent to an estimated $500 million AUD previous year . "I didn't expect anything". Self-made can also mean building a company or establishing a fortune on his or her own, instead of inheriting the fortune.

Trudeau ‘in TOTAL CHAOS’: Second cabinet minister resigns over escalating SCANDAL
Indeed, when Wilson-Raybould resigned from cabinet, Philpott tweeted a picture of the pair with their arms around each other. The controversy surrounding corrupt dealings by SNC-Lavalin has received extensive coverage in the Quebec media since 2012.