01-16-2017, 11:04 PM
OPEC is unlikely to deliver fully on its target to cut production despite Saudi Arabia saying it had trimmed more than it had committed to, OPEC delegates say, but compliance of 80 percent would be good and as low as 50 percent acceptable. The Organization of the Petroleum Exporting Countries is planning to cut its output by 1.2 million barrels per day to 32.50 million bpd from Jan. 1. Russia and other non-members are planning to cut about half as much.
Despite Saudi signals, OPEC unlikely to deliver all promised oil cuts | Reuters
Oil headed for its first weekly decline since December as traders waited for proof that OPEC and other producers would follow through on promises to cut production. Futures slipped 1.2% in New York and were headed for a weekly drop of 3%. Saudi Arabia reduced output to less than 10 MMbopd and will consider renewing its pledge to trim supply in six months, according to Energy Minister Khalid Al-Falih. Still, until monthly production data is released, “these claims cannot be verified,” according to Commerzbank AG.
Crude oil halts four-week gain as OPEC cuts yet to be verified
Major oil companies could venture back into the ocean depths this year. Energy research firm Wood Mackenzie believes drillers will double the number of final investment decisions this year compared to last year, meaning the industry may pull the trigger on 20 large multiyear projects in 2017.
Drillers could double project investment decisions in 2017, Wood Mac says | Fuel Fix
The appetite for raw materials in the world’s biggest consumer keeps getting bigger. China’s imports of crude oil and iron ore rose to records in 2016, while coal buying expanded for the first time in three years, according to government data released Friday. Growing domestic demand sent steel and aluminum exports down, while outbound shipments of oil products soared as the country sought to reform its refining industry and fuel specifications.
China Commodities Juggernaut Rolls Into 2017 as Records Tumble - Bloomberg