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OPEC looks to cut oil production to support falling price

Published

6 years ago

5 minute read

VIENNA — OPEC countries were gathered Thursday to find a way to support the falling price of oil, with analysts predicting the cartel and some key allies, like Russia, would agree to cut production by at least 1 million barrels per day.

Crude prices have been falling since October because major producers — including the U.S. — are pumping oil at high rates and due to fears that weaker economic growth could dampen energy demand. The price of both benchmark U.S. crude and the standard for internationally traded oil fell 22 per cent in November.

The oil minister of Saudi Arabia, the heavyweight within OPEC, said Thursday that the country was in favour of a cut.

“I think a million (barrels a day) will be adequate personally,” Khalid Al-Falih said upon arriving to the meeting in Vienna. That, he said, would include production for both OPEC countries as well as non-OPEC countries, like Russia, which have in recent years been co-ordinating their production limits with the cartel.

That view was echoed by others, including the oil ministers of Nigeria and Iraq.

“I am optimistic that the agreement will stabilize the market, will stop the slide in the price (of oil),” said Iraq’s Thamir Ghadhban.

Investors did not seem convinced, however, and were pushing the price of oil down sharply again on Thursday, partly due to broader concerns that a trade war between the U.S. and China could escalate and hurt global growth. The international benchmark for crude, Brent, was down $1.52 at $60.04 a barrel.

The fall in the price of oil will be a help to many consumers as well as energy-hungry businesses, particularly at a time when global growth is slowing.

U.S. President Donald Trump has been putting pressure publicly on OPEC to not cut production. He tweeted Wednesday that “Hopefully OPEC will be keeping oil flows as is, not restricted. The World does not want to see, or need, higher oil prices!”

While Saudi Arabia has indicated it is willing to cut production, its decision may be complicated by Trump’s decision to not sanction the country over the killing of dissident journalist Jamal Khashoggi. U.S. Senators say, after a briefing with intelligence services, that they are convinced that Saudi’s de-facto ruler, Crown Prince Mohammed bin Salman , was involved in Khashoggi’s death. Some experts say that gives the U.S. some leverage over the Saudis, though Al-Falih denied that on Thursday.

When asked if the Saudis had permission from Trump to cut production, Al-Falih replied: “I don’t need permission from any foreign governments.”

Experts say this week’s meeting of the Organization of the Petroleum Exporting Countries will influence the price of oil over the coming months. How strongly it does so could depend on Russia’s contribution, which will be determined in a meeting on Friday.

Analysts at Commerzbank estimate that if Russia is willing to step up its production cuts, OPEC and non-OPEC countries could trim production by a combined 1.3-1.4 million barrels a day. This “would be enough to rebalance the oil market next year,” they wrote in a note to investors.

OPEC’s reliance on non-members like Russia highlights the cartel’s waning influence in oil markets, which it had dominated for decades. The OPEC-Russia alliance was made necessary to compete with the United States’ vastly increased production of oil in recent years, particularly since 2016. By some estimates, the U.S. this year became the world’s top crude producer.

OPEC is also riven by internal conflict, especially between regional rivals Saudi Arabia and Iran. One of the key questions in Thursday’s talks is whether to exempt Iran from having to cut production, as its energy industry is already hobbled by U.S. sanctions on its crude exports.

Meanwhile, Qatar, a Saudi rival and Iranian ally, said this week it would leave OPEC in January. While it said it was purely a practical decision because it mainly produces natural gas and little oil, the move was viewed as a symbolic snub to the Saudi-dominated organization.

___

David Rising and Geir Moulson in Berlin and Anthony Mills in Vienna contributed to this report. Piovano reported from London.

Kiyoko Metzler And Carlo Piovano, The Associated Press





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Border Patrol Agent Lashes Out At Biden-Harris Admin, Calling Job ‘Migrant Concierge Service’ Amid Border Crisis

Published on September 14, 2024

By

From the Daily Caller News Foundation

By Mariane Angela

The border agent stated he is prepared to risk his career to bring attention to what he views as grave mismanagement and potential dangers posed by current border policies.

A Border Patrol agent criticized the recent changes in his role under the Biden-Harris administration, condemning it as transforming into a “migrant concierge service,” according to The New York Post Friday.

Zachary Apotheker, who joined the force in 2020, voiced his frustration over the shift in his duties under the Biden administration from intercepting drug traffickers and apprehending illegal entrants to what he now sees as aiding migrant entry, in an interview with the NYP. Apotheker highlighted concerns about security and vetting under President Joe Biden and Vice President Kamala Harris, noting that over 8 million migrants have crossed the southern border since January 2021, including members of the Venezuelan prison gang, Tren de Aragua.

“I don’t want to bring people into the country. That’s not what I signed up to do,” Apotheker told NYP. Apotheker’s distress is further compounded by over 1.7 million illegal migrants who have evaded capture since Jan. 2021, as he shared encounters with victims of migrant-committed crimes, naming individuals and emphasizing the personal toll on him.

“I’m an apolitical person and I just want to do my job and protect this country,” the agent said, the NYP reported. “When I see people from another country coming here, getting resources beyond what the American citizen can get, that’s where I have to draw the line. And then they’re going out and committing crimes and we’re still not removing them and American citizens are being killed, women are being raped.”

Apotheker and multiple Border Patrol sources have raised concerns to the NYP about the inadequate documentation for unaccompanied migrant children under 14, including missing biometric data, complicating their safe relocation to families or sponsors in the U.S. He highlighted a backlog in the immigration system, noting that 291,000 migrant children have been released in the U.S. without court dates, with an additional 32,000 failing to appear for their scheduled hearings.

The border agent stated he is prepared to risk his career to bring attention to what he views as grave mismanagement and potential dangers posed by current border policies. “However bad you think it is now, it’s only going to be worse,” he warned.

The White House and Border Patrol did not immediately respond to the Daily Caller News Foundation’s request for comment.

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Rumored deal with Bloc Quebec party could keep Trudeau Liberals in power, stave off election

Published on September 10, 2024

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From LifeSiteNews

By Anthony Murdoch

“The federal government does not have a mandate to bargain with Quebec separatists at the expense of Alberta, the West and the rest of the country”

The possibility of an early Canadian election may not come to fruition after Bloc Québécois leader Yves-Francois Blanchet hinted that an alliance between the separatist party and the Liberals under Justin Trudeau could become a reality.

Rumors began to swirl that a Bloc-Liberal deal could happen after Bloc House leader Alain Therrien said Sunday that the party’s “objectives remain the same, but the means to get there will be much easier.”

“We will negotiate and seek gains for Quebec … our balance of power has improved, that’s for sure,” he said, as reported by the Canadian Press.

Therrien made the comments in light of the possibility of a federal election taking place before fall 2025 after New Democratic Party leader Jagmeet Singh pulled his official support for Trudeau’s Liberals last week.

Late last month, Conservative Party leader Pierre Poilievre called on Singh to pull his support for Trudeau’s Liberals so that an election could be held.

Therrien also noted that the NDP pulling its support of the Trudeau Liberals has created a “window of opportunity” that his party may exploit. The Canadian Press reported that a person close to the Bloc party said directly that the NDP had in essence handed the party the balance of power.

As it stands now, the Bloc has 32 seats to the NDP’s 24, which is more than enough to prop up the Liberals, who have 154 seats.

As for Blanchet, he told the media on Monday that he was feeling “good” about his party’s newfound power. He then took a shot at Poilievre, saying he is more or less like Trudeau. “There are plenty of issues on which (Poilievre’s) in the same position as Justin Trudeau,” Blanchet said.

“Show us that you’re different, Justin Trudeau, apart from being against abortion, then we’ll see what you have to offer,” he said.

While most Conservative MPs are pro-life, Poilievre supports abortion and has a poor track record when it comes to life and family issues, with Campaign Life Coalition having given him a “red light” rating.

News of a possible Bloc-Liberal deal to keep Trudeau in power drew the immediate ire of Alberta Premier Danielle Smith.

“The federal government does not have a mandate to bargain with Quebec separatists at the expense of Alberta, the West and the rest of the country,” she wrote Monday on X. “If the Liberals go down this path, we need an election to be called immediately.”

On Tuesday, Blanchet responded to Smith’s comments to reporters by saying he found her remarks “funny,” adding that “Canadians are suddenly very interested in us.”

As for Trudeau, his woes continue to mount. LifeSiteNews recently reported how national elections campaign director for Canada’s federal Liberal Party announced he was stepping down because, according to sources close to the party, he does not think Trudeau can win a fourth consecutive election.

Recent polls show that the Conservatives under Poilievre would win a majority government in a landslide in an election held today. Singh’s NDP and Trudeau’s Liberals would lose a massive number of seats.

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