Oil languishes near multi-month lows on glut fears & Saudi Arabia appoints new crown prince: analyst reaction

Record ID: 896428

  • Title: Oil languishes near multi-month lows on glut fears & Saudi Arabia appoints new crown prince: analyst reaction
  • Date: 21st June 2017
  • Summary: LONDON, ENGLAND, UK (JUNE 21, 2017) (REUTERS) (SOUNDBITE) (English) LCG SENIOR ANALYST, JASPER LAWLER, SAYING: "With the benefit of hindsight, obviously, OPEC needed to go the extra measure. They needed to cut by more, or promise to extend the cuts for longer. The fact is that shale oil in the U.S. as well as some countries which are not part of the OPEC agreement are increasing production while oil prices remain stable in this you could say 40 to 60 region off the lows that they have been. The production's been increasing, efficiency has been improving. And so that supply glut overall has not been addressed. And you could probably add on top of that, that there are signs that China's economy is slowing slightly. The U.S. is not firing on all cylinders and so probably the demand is not there either for oil."
  • Embargoed: 5th July 2017 13:27
  • Keywords: saudi oil opec Mohammed bin Salman mbs
  • Location: LONDON, ENGLAND, UK / SAUDI ARABIA
  • City: LONDON, ENGLAND, UK / SAUDI ARABIA
  • Country: Saudi Arabia
  • Topics: Commodities Markets,Economic Events
  • Reuters ID: LVA0026M7ZIO7
  • Aspect Ratio: 16:9
  • Story Text: Oil prices held near multi-month lows on Wednesday (June 21) as investors discounted evidence of strong compliance by OPEC and non-OPEC oil producers with a deal to cut a global output.
    Global benchmark Brent was unchanged at $46.02 barrel at 0651 GMT after falling nearly 2 percent in the previous session to its lowest settlement since November.
    U.S. crude futures for August were trading up 4 cents at $43.55, after spending much of the day slightly lower and falling more than 2 percent on Tuesday to the lowest since September.
    Compliance with an agreement by the Organization of the Petroleum Exporting Countries and other producers to cut output by 1.8 million barrels per day (bpd) for six months from January reached its highest in May since curbs were agreed last year.
    OPEC's largest producer, Saudi Arabia, meanwhile, announced a new crown prince.
    Saudi Arabia's King Salman made his son his successor on Wednesday, removing his nephew as crown prince and giving the 31-year old almost unprecedented powers as the world's leading oil exporter implements transformational reforms.
    A royal decree appointed Mohammed bin Salman crown prince and deputy prime minister. He retains defence, oil and other portfolios.
    Although Mohammed bin Salman's promotion was expected among close circles it came as a surprise at a time the kingdom is facing heightened tensions with Qatar and Iran and is locked in a war in Yemen.
  • Copyright Holder: REUTERS
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