Worst-case Brexit options
BoE forecast tends to assume too many things |
Opec members have tentatively agreed to cut production to rebalance oil markets at a meeting in Vienna yesterday, but are yet to decide on its volume and will wait for a final decision from non-Opec producer Russia.
Russia, coordinating with Opec (Organisation of Petroleum Exporting Countries) since December 2016 on output cuts, is expected to announce its decision today on its reduction. The international benchmark, Brent, was down 3.49 per cent at $59.41 (Dh218) per barrel at 7:47pm UAE time, while US crude West Texas Intermediate was trading at $50.56, down 4.41 per cent.
Markets were expecting about 1.4 million bpd of reduction. Output cuts are necessitated following a drop in oil prices due to higher production from Saudi Arabia, Russia and other countries and the granting of waivers to eight countries from Iran sanctions imposed by the US administration in November.
From more than $85 per barrel in October oil prices, fell to less than $60 as supply continued to increase and outpace demand. Suhail Mohammad Al Mazroui, UAE Minister of Energy and Industry and President of the Opec Conference, also raised concerns about higher supply growth in 2019.
“As we look forward to 2019, we see a new set of challenges. This includes the general consensus that prospects point to