Tag: oil price
Oil prices also take a hit.
However, doubts remain over kingdom’s ability to restore supply by end of September.
The decline in the price of crude oil and an increase in costs sees Aramco’s profits fall 12%.
Opec and its allies will then gather in Vienna on Monday and Tuesday to decide on the group’s production levels.
Oil had already climbed almost 40% this year as Opec nations reduced production.
Their spending plans contrast with global titans such as Royal Dutch Shell and Chevron, who are keeping a tight grip on spending and returning cash to investors via dividends and share buybacks.
Crude prices have been pushed up by almost a third since the start of 2019 by supply cuts led by Opec.
US’s shale boom has driven the nation’s production up by about a third since 2016, with exports surging to Europe as well as Asia.
The fall of imports comes as Venezuelan oil shipments drop due to US sanctions against Maduro and the Saudis' attempt to curb exports.
US crude output has set record highs for 2 straight weeks, hitting 12.1 million bpd last week.
The ringgit stands at 4.1340/1390 against the greenback from 4.1300/1350 at the close yesterday.
Oil has plunged more than 40% from a 4-year high in October on the prospect of a supply glut.
The former Pandan MP says motorists will be able to enjoy immediate savings when there is a drop in crude oil prices.
However, Yeah Kim Leng and Barjoyai Bardai say the government must have in place mitigation measures which can be speedily implemented if the price of oil drops further.
The former finance minister says the government should not have formulated the budget on the assumption that the price of Brent crude oil would be about US$72 per barrel.
Implied volatility for very bullish Brent options that expire after the Nov 4 resumption of sanctions has overtaken that for very bearish options, suggesting increased demand for such bullish bets.
Opec and its allies have been limiting supply since 2017 to get rid of a glut.
At 9am, the local currency stood at 4.1350/1410 against 4.1370/1400 recorded at Friday's closing.
The company, which develops small oil and gas fields in Asia, has two major producing assets.
Despite the tight market outlook for the coming months, some traders said more oil would be hitting markets in 2019.
Oil prices had rallied after Opec leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, ruled out on Sunday any immediate, additional increase in crude output, effectively rebuffing US President Donald Trump's calls for action to cool the market.
Crude oil prices could rise to US$90 per barrel by Christmas and to US$100 by the New Year as markets tighten.
RAPID and two other refineries will import at least 600,000 barrels a day of Saudi crude when they reach full capacity by the middle of next year.
The escalation in US-China trade tensions will test two strong weeks of gains for Asian equities that lifted stocks off this year’s lows in part due to optimism that economies can weather the hit from trade restrictions.
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