NEW YORK: Oil prices rose more than 2% on Tuesday as Israel threatened to attack the Lebanese state if its truce with Hezbollah collapses, and as investors positioned for OPEC+ to announce an extension of supply cuts this week. Brent crude futures posted their biggest gains in two weeks, rising by US$1.79, or 2.5%, to settle at US$73.62 a barrel. US West Texas Intermediate crude futures also rose the most since Nov. 18, gaining US$1.84, or 2.7%, to close at US$69.94 per barrel. Israeli forces have continued strikes against what they say are Hezbollah fighters ignoring last week's truce agreement in Lebanon. Top Lebanese officials have urged Washington and Paris to press Israel to uphold the ceasefire. The risk to the ceasefire has some oil traders worrying more about tensions in the Middle East, UBS analyst Giovanni Staunovo said. While the Lebanon conflict has not resulted in oil supply disruptions, traders will closely track tensions between Iran and Israel over the coming months, Staunovo added. Also supporting oil prices, the Organization of the Petroleum Exporting Countries and allies will likely extend output cuts when Opec+ meets on Thursday. The group is likely to extend supply cuts until the end of the first quarter next year, four Opec+ sources told Reuters. Opec+, which accounts for about half of the world's oil production, has been looking to gradually unwind supply cuts through next year. However, the prospect of a market surplus has pressured oil prices, with Brent trading nearly 6% below its average for December 2023. An extension of Opec+ supply cuts will limit the market surplus and provide the oil market a softer landing than most forecasts expected, Scott Shelton, energy analyst at TP ICAP told clients in a note. "Given a rise in compliance with production cuts from Russia, Kazakhstan and Iraq, the lower Brent price level and indications in press reports, we assume an extension of OPEC+ production cuts til April," Goldman Sachs analysts said in a note. The global oil demand outlook remains weak and China's crude imports are likely to peak as early as next year as demand for transport fuel begins to decrease, researchers and analysts said. US crude oil inventories rose 1.2 million barrels in the week ended Nov. 29, market sources said citing data from the American Petroleum Institute. Fuel stocks also rose, they said. Rising inventories typically indicate weak demand. Official data on oil stocks from the US Energy Information Administration is due Wednesday at 10:30 a.m. ET (1530 GMT). Analysts polled by Reuters expect a 700,000 barrel decline in crude stocks. "Oil is not going to be in short supply next year," Francisco Blanch, head of global commodities at BofA Securities told reporters. "Demand growth rates will slow in 2025, and we cannot count on China to account for half the global oil demand," he said. "(Oil) prices will roll down a bit," he said. — Reuters
Mohd Khairuddin (second left) and Krishnan show the signed MoC, in the presence of Abang Abdullah (left) and Ahmad Zaiwin. KUCHING (Dec 4): The Institute of Management Sarawak (Masa) has signed a Memorandum of Collaboration (MoC) with MyREF Consultancy and Training PLT (MyREF CT) to facilitate activities and initiatives towards developing training programmes, seminars, summits, or similar initiatives focusing on leadership, management, science, technology, and engineering. Masa is a non-profit organisation established in Sarawak, while MyREF CT is a company wholly owned by the Malaysian Research & Education Foundation (MyREF). “Both parties will undertake a collaborative initiative to establish a leadership institute dedicated primarily to the fields of leadership and management as well as activities or initiatives related to, but not limited to, leadership, management, science, technology, engineering, and social sciences,” Masa said in a statement yesterday. The MoC, which aims to promote sustainable communities and nations, was signed by MyREF CT chief executive officer Mohd Khairuddin Rais and Masa general manager Dr Krishnan Murali. Witnessing the signing were MyREF chairman Datuk Abang Abdullah Abang Ali, and Masa board of director member Ahmad Zaiwin Mohd Kassim. The first collaborative initiative by MyREF and Masa will be the Contemporary Leadership International Summit here in mid-February next year.None
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