Oil soars after non-OPEC agreement
Oil prices saw a hike on Monday following a landmark deal by Russia and other non-OPEC producers to join the cartel in capping output, in a bid to end a stubborn global glut that has hammered prices. Russia and 10 other states on Saturday had said they will reduce their production by more than half a million barrels per day (bpd), the Organization of the Petroleum Exporting Countries (OPEC) announced.
The move marks the first time non-OPEC members have reached an agreement since 2001, and follows a similar deal by OPEC last month. OPEC members had agreed to collectively reduce output by 1.2 million bpd beginning in January. U.S. benchmark West Texas Intermediate for January was up $2.50 at $54.00 while Brent crude for February rose $2.41 to $56.74.
OPEC kingpin Saudi Arabia also announced at the weekend that it will slash production beyond what was previously agreed in Vienna by OPEC, providing an additional boost for prices.
"The country is also preparing a partial flotation of its crown jewel in 2018, the state-owned oil company Saudi Aramco, and that certainly serves as an incentive for the oil giant," said IG market strategist Jingyi Pan. Pan noted prices have hit their highest since February 2015 and any concerns about compliance have been put on a back burner.
Rosneft to buy Italian Eni's 30 pct stake in Egypt's Zohr fieldItalian oil and gas group Eni have agreed to sell a 30 percent stake in Egypt's offshore Shorouk concession to Russia's Rosneft for $1.125 billion, cutting its stake in the Zohr giant gas field to 60 percent.
The written statement released by Eni revealed Rosneft would reimburse pro-rata investments already carried out by the Italian group totaling around $450 million at present. The agreement provides Rosneft with an option to buy a further 5 percent stake under the same conditions. Eni discovered Zohr field, the Mediterranean's largest-ever gas field, in the Shorouk concession in August 2015. The Zohr gas field is estimated to include 850 billion cubic meters of gas.
The move marks the first time non-OPEC members have reached an agreement since 2001, and follows a similar deal by OPEC last month. OPEC members had agreed to collectively reduce output by 1.2 million bpd beginning in January. U.S. benchmark West Texas Intermediate for January was up $2.50 at $54.00 while Brent crude for February rose $2.41 to $56.74.
OPEC kingpin Saudi Arabia also announced at the weekend that it will slash production beyond what was previously agreed in Vienna by OPEC, providing an additional boost for prices.
"The country is also preparing a partial flotation of its crown jewel in 2018, the state-owned oil company Saudi Aramco, and that certainly serves as an incentive for the oil giant," said IG market strategist Jingyi Pan. Pan noted prices have hit their highest since February 2015 and any concerns about compliance have been put on a back burner.
Rosneft to buy Italian Eni's 30 pct stake in Egypt's Zohr fieldItalian oil and gas group Eni have agreed to sell a 30 percent stake in Egypt's offshore Shorouk concession to Russia's Rosneft for $1.125 billion, cutting its stake in the Zohr giant gas field to 60 percent.
The written statement released by Eni revealed Rosneft would reimburse pro-rata investments already carried out by the Italian group totaling around $450 million at present. The agreement provides Rosneft with an option to buy a further 5 percent stake under the same conditions. Eni discovered Zohr field, the Mediterranean's largest-ever gas field, in the Shorouk concession in August 2015. The Zohr gas field is estimated to include 850 billion cubic meters of gas.
Last Update: December 13, 2016 01:40