Oil rebounds, as OPEC talks up cutting supply into 2018

In a bid to defend its Asian market share, earlier this month Saudi Arabia lowered yet again the official selling prices (OSPs) for the crude grades it sells to Asia in June, while pricing for all other regions was raised. "Opec has done a remarkable job in compliance with agreed cuts".

"Oil prices of US$50 to US$60 per barrel might be sustainable".

The power center has shifted to the USA shale oil producers. "It needs to be longer and [with] more cuts, maybe another 500,000 to 700,000 barrels a day (bpd)", he added.

"Soothing words from Saudi Arabia about extending the production cut deal, possibly into 2018, supported prices", said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore. "The producer coalition is determined to do whatever it takes to achieve our target of bringing stock levels back to the five-year average".

Amazon lowers free shipping minimum ... again
On Amazon's website, it says that online orders of $25 or more, featuring eligible items, will qualify for free shipping . Wal-Mart has enhanced its position as the runner-up by being boldly aggressive under new digital boss Marc Lore.

Data from the InterContinental Exchange yesterday showed investors had cut their bullish bets on Brent to the lowest level since late November, according to Reuters.

A cornerstone of the Saudi promise to rebalance the market would be to extend, potentially into 2018, a pledge led by the Petroleum Exporting Countries (OPEC) and other producers including Russian Federation to cut output by nearly 1.8 million barrels per day (bpd) during the first half of the year. "We have committed to a 20,000 barrels per day cut and that's our commitment".

However, many analysts only see an overbundance of talk from OPEC members, as opposed to action regarding stockpiles.

However, Fesharaki is concerned that rising production from the USA oil supplies, coupled with prolonged weaker demand, might result in Opec giving up on market management.

Unemployment Rate Hits Lowest Level Since 2007
The job market surpassed expectations in April with 211,000 added jobs, and unemployment dropped to its lowest rate in 10 years. That's a 2.5 percent increase from a year ago, but some economists expect that to get to 3 percent by the end of the year.

"Based on my judgement today it's unlikely that we will need to continue (the agreement) - demand will pick up in the summer and we want to make sure the market is supplied well. More cuts? Who will cut?" he asked.

Oil prices rose on Tuesday, but faced headwinds from concern over slowing demand and the rise in United States crude output that has shaken investors' faith in the ability of OPEC to rebalance the market.

"I believe the worst is now behind us with multiple leading indicators showing that supply-demand balances are in deficit and the market is moving towards rebalancing", Falih told an audience in Kuala Lumpur.

The kingdom will cut supplies by a little more than 3 million barrels for India and slightly less than 1 million barrels for Japan, the source with knowledge of the nominations said.

Report claims iPhone 7S and iPhone X will now arrive in October
Recently we saw a lot of reports claiming that instead of September, the iPhone 8 would get launched in October or November. The latter is typically where the new iPhone is unveiled. iPhone 8 is also expected to be launching alongside iPhone 7s.

Related news