Oil rises on Saudi pledge to cut output, weak dollar

Oil rises on Saudi pledge to cut output, weak dollar

London : Oil rose towards $65 barrel yesterday, supported by Saudi Arabia’s comment that it would rather see an undersupplied market than end an OPEC-led deal to withhold production too soon, and by a weak U.S. dollar.

Saudi Energy Minister Khalid al-Falih said on Wednesday the Organization of the Petroleum Exporting Countries would do better to leave the market tight than end the deal on cutting output too early. Saudi Arabia is OPEC’s top producer.

Brent crude, the global benchmark, rose 32 cents to$64.68 as of 0943 GMT, extending the previous session’s gain of $1.64. U.S. crude was up 58 cents at $61.18.

“Khalid al-Falih gave his strongest hint yet that exiting the current supply agreement is unlikely to be on the agenda this year,” said Tamas Varga of oil broker PVM.

Oil also gained as the U.S. dollar weakened, falling to a 15-month low against the yen. A weaker dollar makes oil and other dollar-denominated commodities cheaper for holders of other currencies, potentially boosting demand.

“It seems that al-Falih felt this comment was necessary to stabilise oil prices,” said Commerzbank analyst Carsten Fritsch of the Saudi minister’s preference for a tighter market than an early boost in production.

“Prices are being additionally boosted by the fact that the U.S. dollar has been significantly weaker since yesterday.”

The OPEC-led deal to cut output by 1.8 million barrels per day, almost 2 percent of global supply, started a year ago. Producers have succeeded in whittling down an excess of crude in storage that had been weighing on prices.

However, rising output in the United States is balancing the supply cuts by other producers.

U.S. crude production hit a record 10.27 million barrels per day, the Energy Information Administration said on Wednesday, more than Saudi Arabia pumps with Riyadh’s voluntary curb on its output and not far from Russia.

With domestic production rising, U.S. crude inventories increased last week by 1.8 million barrels, although the gain was less than analysts had expected. 




Fairway enters Bahrain

Fairway enters Bahrain

Fairway Group, a Jersey-based trust, fund and pension services, has kick-started its international operations with the opening of its office in the Kingdom. The move into Bahrain comes on the back of the Fairway Group’s long and

How to read CVs

How to read CVs

Reading a CV and getting clues to the person behind it becomes easier with practice. A CV is a marketing document in which the candidate is marketing something: themselves. Are they paying respect to you, the reader, by delivering an exceptional marketing tool for you to read? This market


Indonesia trade expo chance for businessmen

Indonesia trade expo chance for businessmen

The Indonesian Embassy in collaboration with Indonesia Business Friendship Society and ASEAN Bahrain Council (ABC) is inviting Bahrain businessmen to participate in the Trade Expo Indonesia (TEI), in Jakarta, which is to be held from October 24 to 28. The 33rd Trade Expo Indonesia is one of the b

Imam murder main suspect ‘mentally fit’

Imam murder main suspect ‘mentally fit’

A mental evaluation confirmed that the suspected mosque imam murderer is responsible for his actions, while the High Criminal Court decided that it will issue its ruling on October 31, 2018. The 35-year-old Bangladeshi defendant admitted earlier to murdering Bahraini imam Abduljaleel Hamood befor

Pipeline bombers sentenced

Pipeline bombers sentenced

The High Criminal Court yesterday handed down tough sentences to seven members of a terror cell accused of bombing an oil pipeline in Buri. The court sentenced the first, second, third, fourth and fifth defendants to life in prison and fined them BD 200,000 each. It also sentenced the six

‘We won’t leave Manama, come what may’

‘We won’t leave Manama, come what may’

The labourers and ‘free-visa workers’ living in dilapidated buildings and congested labour accommodations in Manama and Salmaniya area are unwilling to move out of the place as they believe it would affect their livelihood. There has been a huge demand from the part of lawmake

Man steals money to buy dog

Man steals money to buy dog

A young Bahraini stole BD1,700 from his close friend and spent it on buying a dog, car accessories and a phone, the court heard. Being a good friend, the victim would often host the accused in his apartment, say, prosecutors. The accused allegedly stole the money from his friend’s apartment

VIVA primed for further digital transformation

VIVA primed for further digital transformation

VIVA’s way forward will be with a stronger focus on digital transformation and innovation while continuously adapting to the changing customer needs, according to its Chief Executive Officer. The changing times and landscape have called for a shift in focus at VIVA, with the company

When bullies rule schools

When bullies rule schools

A recent study has shockingly revealed that Bahrain has the second highest school bullying rates for elementary stage students globally, stressing that 43 percent of students were bullying victims. The study, conducted by Bahraini educationalist Dr. Mariam Al Qassab, showed that verbal bu

Indian Premier Modi tweets praises for Bahrain
Advertismentskip ad

Indian Premier Modi tweets praises for Bahrain

His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister yesterday retweeted a remark made by Indian Prime Minister Narendra Modi describing Bahrain as the land of tolerance and peaceful coexistence. Mr. Modi had pos

Inspect labour camps

Inspect labour camps

The Cabinet chaired by His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa yesterday gave directives to Labour and Social Development Ministry to cooperate with the Interior Ministry and Ministry of Works, Municipalities Affairs and Urban Planning to conduct frequent inspection

Kanye West back on Twitter with live rant

Kanye West back on Twitter with live rant

Rapper Kanye West is back on Twitter and posted a video about mind control to mark his return on the social media platform. West deleted his Twitter and Instagram accounts last week after he was criticised for a rant he gave to the &ld