oil output


Commodities’ drag on 3Q earnings

The third quarter of this year has been a disappointing period for Corporate Malaysia as results came in below expectations and analysts believing that the profit trend would unlikely get better anytime soon. Analysts said the lacklustre corporate third quarter among Bursa Malaysia-listed companies would likely extend into the last three months of the year […]

Opec offsets Iran oil loss, sees lower 2019 demand

LONDON, Dec 12 — Opec said today it had offset a drop in sanctions-hit Iranian oil exports and lowered the 2019 forecast of demand for its crude, underlining the challenge the producer group faces to prevent a glut even after last week’s…

Oil prices to stabilise at current levels for 2019

PETALING JAYA: Oil prices are expected to see some stabilisation at the current US$60 per barrel (RM250) level for 2019, supported by demand and supply fundamentals.

Prices for Brent crude added 0.2%, while West Texas Intermediate was slightly lower by 0.5% to US$61.67 and US$52.61 per barrel respectively post-Opec (Organisation of the Petroleum Ex-porting Countries) meeting, but are still 7.8% and 12.9% lower year to date, said PublicInvest Research in its report today.

It reaffirmed its “overweight” stance on the oil and gas sector, based on oil price stability en-couraging greater levels of activity.

On Friday, Opec and non-Opec members (Opec+) agreed to extend oil output cuts till June 2019, adjusting the overall production by 1.2 million barrels per day (bpd) from October 2018 levels.

“This will, at once, help reduce concerns towards an oversupply situation after the US president exempted eight countries including China from bruising sanctions that the country was re-imposing on Iran against the backdrop of strong supply from US shale oil,” said Public-Invest Research.

It noted that the Opec+, which includes Russia and Kazakhstan, possesses unprecedented influence over the world economy with control over 55% of global oil supplies and 90% of proven reserves.

The research house said the Opec meeting outcome was in line with expectations for the allies to throttle back on output by 1 million to 1.4 million bpd. Opec members agreed to reduce output by 800,000 bpd while Russia and the allied producers will reduce output by 400,000 bpd.

To recap, Opec+ had reversed course and agreed to increase output in June this year after it had removed more barrels from the market than it intended, which was mainly due to the ongoing freefall in Venezuelan output.

“Since then, sustained production increases from Russia and Saudi Arabia have been seen, resulting in overall conformity levels reaching the lowest in a year. While Opec+ did not release specific quotas for individual countries, both Russia and Saudi have promised to deliver on its commitments,” said PublicInvest Research.

Russia will reduce production by 2% from October’s output of 11.4 million bpd, equalling 228,000 to 230,000 bpd. However, its Energy Minister warned that Russia would reduce supply gradually due to the impact of winter on its oil fields.

Meanwhile, Saudi Arabia’s production hit an all-time high at 11.1 million bpd in November, which is likely to fall to 10.7 million bpd in December and 10.2 million bpd in January.

Next year, world oil demand growth is forecast to grow by 1.29 million bpd year-on-year with total world consumption expected to reach 100.08 million bpd .

The Organisation for Economic Co-operation and Development (OECD) region will contribute positively to oil demand growth, increasing by 0.25 million bpd year on year, while the non-OECD region is assumed to see larger growth by 1.04 million bpd in 2019.

Iran agrees to Opec oil cut, focus shifts back to Russia

VIENNA, Dec 7 — Iran gave Opec the green light today to reduce oil output by around 0.8 million barrels per day from 2019 after finding a compromise with rival Saudi Arabia over a possible exemption from the cuts, an Opec source said. Tehran has…

Opec waiting for Russia before deciding how much oil to cut

VIENNA, Dec 6 — Opec has made a planned cut in oil output effectively conditional on the contribution from non-Opec producer Russia, delegates said today as the group gathered in Vienna for a meeting aimed at supporting battered oil prices. Five…

Bursa stuck in the downtrend at opening

KUALA LUMPUR, Dec 6 — Shares on Bursa Malaysia remained on a downtrend today and in line with global peers, dealers said. At 9.04am, the key FTSE Bursa Malaysia KLCI (FBM KLCI) fell 4.56 points to 1,683.71 from yesterday's close of 1,688.27. The…

Shares on Bursa Malaysia remain on downtrend

KUALA LUMPUR: Shares on Bursa Malaysia remained on a downtrend today and in line with global peers, dealers said.

At 9.04am, the key FTSE Bursa Malaysia KLCI (FBM KLCI) fell 4.56 points to 1,683.71 from Wednesday’s close of 1,688.27.

The index opened 4.92 weaker at 1,683.35.

On the broader market, losers were slightly higher than gainers at 100 to 60, with 119 counters unchanged, 1,590 untraded and 23 others suspended.

Volume stood at 115.82 million units valued at RM34.17 million.

A dealer said the local bourse is expected to weaken further as investors focus on the Organisation of the Petroleum Exporting Countries meeting, scheduled for today.

“Among the topics to be highlighted is the crude oil output policy, and this will provide some clues to global markets, including Malaysia, since we are an oil producing country,“ he said.

The benchmark Brent crude fell 0.84% to US$61.56 (RM6.50) per barrel.

Among other actives, Tatt Giap rose half-a-sen to 1.5 sen, Astro increased nine sen to RM1.38, Techbond added 2.5 sen to 88.5 sen and Bumi Armada was half-a-sen better at 16 sen.

The FBM Emas Syariah Index declined 32.87 points to 11,653.01, the FBM 70 dropped 16.28 points at 13,549.76 and FBM Ace Index was 0.94 of-a-point weaker at 4,742.88.

The FBM Emas Index eased 27.58 points to 11,626.13 and the FBMT 100 Index depreciated 27.12 points to 11,501.82.

Sector-wise, the Plantation Index slid 79.52 points to 6,825.80 and the Financial Services Index slipped 5.08 points to 17,452.73.But, the Industrial Products and Services Index was 0.79 of-a-point better at 170.66.

The physical price of gold as at 9.30am stood at RM160.47 per gramme, up 84 sen from RM159.63 at 5pm yesterday. — Bernama

US shale's growing profits at the mercy of Opec cuts and Trump's tweets

HOUSTON, Dec 6 — The recent nosedive in crude oil prices came just as shale producers had started delivering healthy returns after years of heavy spending to boost production and market share. The shift has pleased investors who had grown weary of…

Opec, Russia move closer to cutting oil output

VIENNA, Dec 6 — Opec and Russia moved closer yesterday to agreeing cuts in oil production from next year despite pressure from US President Donald Trump to reduce the price of crude. Opec meets today in Vienna, followed by talks with allies such…

Opec works on deal to cut output, still needs Russia on board

VIENNA, Dec 5 — Opec and its allies are working towards a deal this week to reduce oil output by at least 1.3 million barrels per day, four sources said, adding that Russia's resistance to a major cut was so far the main stumbling block. Opec…