Specter of oil rebound haunts Emerging Markets again as dollar rides high

Specter of oil rebound haunts Emerging Markets again as dollar rides high

Opec's de-facto leader Saudi Arabia is expected to draw back its exports for the month of December by as much as 500,000 bpd as it anticipates lower winter demand, its oil minister said on Sunday. This was announced by the Minister of energy of Saudi Arabia Khalid al-falih following the meeting of the Ministerial monitoring Committee of OPEC+. Oil futures had gained as much as 2.4 percent in London and 1.8 percent in NY after the Saudi announcement.

The outlook for oil, a key source of revenue for Russian Federation and Saudi Arabia, is adding a fresh twist for a market already obsessed with Federal Reserve tightening and the U.S. USA crude rose 60 cents to $60.79 a barrel, the first increase after the longest stretch of daily declines since 1984. Barron's Al Root noted that changes in output from the particular world region can have an outsized impact on commodity prices due to the major difference in what it costs to produce oil in the kingdom versus other places in the world.

Brent crude futures rose 80 cents on the day to $70.98 a barrel by 1205 GMT, while United States crude futures rose 36 cents to $60.69 a barrel.

Emerging markets are already contending with US-China trade tensions, policy tightening in developed countries and a resurgent dollar.

That in mind, they vowed to consider "options on new 2019 production adjustments, which may require new strategies to balance the market".

The astonishing Manchester derby fact that could worry Man City fans today
When asked to elaborate, though, his response was unusually reserved, saying: "I keep for me". "I don't think it's easy for him". Belgium striker Romelu Lukaku has missed United's past two matches with a muscle problem, but could return against City.

A big concern for Saudi Arabia and other traditional producers from the Middle East-dominated Organisation of the Petroleum Exporting Countries (OPEC) is the surge in USA output. Since May, Opec production has risen 820,000 barrels a day, and Russia's output increased from 440,000 barrels a day in May to 11.4 million b/d in October. Russia, the world's second-biggest producer, said it would commit to any new agreement among producers to cut output.

Meanwhile, analysts believe OPEC, led by Saudi Arabia, of course, "is acting responsibly by reducing its production that it had earlier brought online to offset possible Iranian losses". The cut represents a reduction in global oil supply of about 0.5 percent.

Dr Mahathir also said Malaysia's economy is not fully reliant on its oil and gas yields, even though he had previously said the government will be using money from state oil company Petronas to pay some of its debts. Turn about: Opec members and its 10 allies are mainly anxious about the increasing USA production (11.4 million barrels a day).

"Prices have been falling amid a continued rise in crude supplies from big producers, such as Saudi Arabia, Russia and the USA, more than compensating for lost Iranian barrels", Forex.com analyst Fawad Razaqzada told AFP.

But the market has turned bearish in the past three weeks due to the USA issuing sanction waivers for eight countries importing Iranian crude, record American production and forecasts of slowing demand. As of last week, hedge funds and other money managers had reduced their long position in oil contracts to their lowest since August 2017.

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