Why has OPEC-led deal failed to energize oil prices?

first_imgWhere are oil prices now? In late afternoon European deals, international benchmark London Brent North Sea oil stood at $31.04 per barrel, compared with $34.36 last Thursday before talks began.US benchmark West Texas Intermediate crude meanwhile traded at $21.81 a barrel on Tuesday, down from $26.80.Both contracts had crashed late last month on virus-linked demand fears and a Saudi-Russia crude price war. Global oil traders have shrugged off Sunday’s historic output-cutting deal by OPEC and its allies, with prices languishing not far from recent two-decade lows.The market failed to win traction from the deal, which fell short of expectations and resulted from Easter weekend video-conference talks led by the Organization of the Petroleum Exporting Countries. WTI had slumped as low as just $19.27 per barrel on March 30, when Brent had also nosedived to $21.65 per barrel. Those levels were last witnessed in 2002.The collapse prompted top producers to tighten the taps to stop hemorrhaging precious oil revenues. Are the cuts enough? OPEC producers dominated by Riyadh, and their allies led by Moscow, thrashed out a compromise deal on Sunday to cut production by 9.7 million barrels per day from May.Yet traders remain doubtful over the impact because the cuts nevertheless fell short of expectations, amid fears over plunging demand on COVID-19 fallout.”The OPEC+ deal has received the underwhelming reception it deserves, frankly, with producers delivering right at the bottom end of expectations after days of talks,” said OANDA analyst Craig Erlam.”This may be the largest ever cut but we are living through an unprecedented event and demand has fallen off a cliff.”Futures briefly bounced Tuesday after US President Donald Trump tweeted producers were considering cutting 20 million barrels per day.Influential Saudi energy minister Prince Abdulaziz bin Salman also indicated cutbacks by OPEC and its allies, together with pledges from other G20 nations and purchases by strategic reserves, could remove 19.5 mbpd from the market.”There is still a lot uncertainty over whether the reduction in output will be enough,” said Markets.com analyst Neil Wilson.”Most think OPEC and allies have not done enough to prop up prices in the near term, albeit they do seem to have shown a willingness to prevent a complete collapse.” What is market outlook ? Global oil supplies are currently outstripping global demand by as much as 30 million barrels per day, according to Alfa Energy chairman John Hall. “What we have to remember is that the supply-demand imbalance could be as high as 30 mbpd,” Hall told AFP.”A recent figure from OPEC has warned of a figure of 14.7 mbpd, so this cut — although the largest ever — is probably not even half way to what is actually needed to supposedly re-balance the market.”Rystad Energy predicts oil demand will hit 28 million barrels per day (mbpd) in April and 21 mbpd in May.That is far below “normal” demand of 100 mbpd, according to Rystad.The IMF meanwhile forecast Tuesday that oil prices will likely remain below $43 throughout 2023 due to “persistently weak demand” in a deep global recession sparked by coronavirus.However, the IMF did also admit that the rapidly falling cost of oil — which greases the wheels of the global economy — should nevertheless give a big boost to consumer nations.center_img Will OPEC deal be respected? Compliance among OPEC member nations over the cartel’s production quotas has long been a controversial topic, analysts agree.”We should not forget how difficult OPEC found it to comply with the production quotas in the past three years,” said Commerzbank analyst Eugen Weinberg.”In fact, compliance was achieved mainly thanks to involuntary production outages and over-compliance on the part of Saudi Arabia.”ING analyst Warren Patterson added: “The group has agreed on historic cuts, and now we have to see whether they will stick to them.”Unlike previous deals, it is hard to see the likes of Saudi Arabia cutting output by more than their quota, in order to make up for shortfalls from others, given the scale that they have already agreed to cut.” What next? Many industry experts expect the global oil market will remain caught between plentiful crude and virus-ravaged demand for the foreseeable future.”With the coronavirus-led slowdown taking a toll on the global oil demand, the supply side news could be rapidly forgotten,” said Swissquote Bank analyst Ipek Ozkardeskaya.”The historic cut did not spark the market reaction that oil producers were hoping for.”Wide controversies among oil producer nations hinted that a further action is probably unlikely.” Topics :last_img read more

Larry J. Lutherbeck

first_imgLarry J. Lutherbeck, 70, of Aurora, Indiana, passed away Monday, January 18, 2016.He was born Saturday, October 20, 1945 in Dearborn County, IN, Son of the late Joseph W. Lutherbeck and the late Norma L. Lowe LutherbeckHe worked as a laborer for Aurora Utilities, retiring after over 20 years of service.He was a former member of the Aurora Moose lodge, the Aurora Eagles, and the American Legion.Surviving are Sisters, Linda (Franklin) Weaver of Bennington, IN, Brenda (Richard) Rice of Williamsburg, VA, Vicki (Tim) Hussong of Aurora, IN; Uncle, Frank Lutherbeck of Broken Arrow, OK; and several neices and nephews.Friends will be received 12:00 – 3:00 PM, Saturday, January 23, 2016 at the Rullman Hunger Funeral Home, Aurora, Indiana.Services will be held at Saturday, at 3:00 PM, following visitation with Pastor Charlie Hill officiating.Contributions may be made to help defray funeral expenses. Please call the funeral home office at (812) 926-1450 and we will notify the family of your donation with a card.Visit: www.rullmans.comlast_img read more

USC researchers tackle medical issues at the Michelson Center

first_imgUSC professor Peter Kuhn speaks about his motivation for researching cancer solutions and his hope to reduce conflicts between the patient and physician over performance status. Emily Smith | Daily TrojanSince its opening, the Michelson Center for Convergent Bioscience has allowed USC professors and students to develop groundbreaking biomedical research.The progress of their research was presented by the Dornsife College of Letters, Arts and Sciences and Viterbi School of Engineering at a workshop on the “Wicked Problem of Cancer and the Art of Convergence” on May 23.The event, which was held at  Michelson Hall, included a cocktail reception, a lecture by Dr. Peter Kuhn and a tour of the building. USC alumni and several members of the Board of Trustees attended the event.Following the cocktail reception, Assistant Vice President of Alumni Relations Danielle Harvey Stinson addressed attendees. In her address, Stinson shed light on the research being conducted and performed at the Michelson Center.“Imagine researchers using metal detection techniques, like the ones used by mining companies and airport security, to view tumor cells on a molecular level not seen before or taking a simple blood test to tell whether or not you may have cancer,” Stinson said. “These are just two of scores of research projects in the works here in the Michelson Hall.”Stinson explained that the different approaches to research,  taken by the Michelson Center, ranging from the fields of medicine to engineering, will have a profound impact on healthcare and spur innovation in the future. “These scientists and engineers are coming together to fast track the development of new drug therapy, high tech diagnostics and biomedical devices,” Stinson said.Once Stinson made her introduction, professor Peter Kuhn discussed how researching solutions to cancer would help make the future more transparent.“We call this convergent science because we believe that cancer is indeed a wicked problem. . . a problem for which little amount of solutions currently exist,” Kuhn said. “The problem space is in fact not owned by a particular discipline. Because of this, the solution space is not yet well defined and it is certainly unclear.”Kuhn began his address by thanking research sponsors as well as  USC faculty across the different schools whom worked with the Michelson Center. He went on to speak about his motivation for cancer research and the goals of his studies at the Michelson Center.“Those of us not yet diagnosed with cancer will never really truly understand that upon diagnosis, the disease is with you for the rest of your life,” Kuhn said. “That simple fact is something that distinguishes cancer from breaking a leg. If you break a leg, you have this very simple, straightforward expectation that you will put a cast on it. The notion of curing cancer is not as simple.” Kuhn explained that there were three things to consider regarding patient care: patient health, patient forecasting and disease status. According to Kuhn, patients and physicians  often disagree over performance status. The Michelson Center, along with its partners, has developed a tool called ATOM-HP to reduce this conflict. “[ATOM-HP] will improve the interaction between the patient and the physician and it will improve the drug development process,” Kuhn said. Based on the results of clinical trials, Khun said that the tool allowed researchers to discover that patients with a low activity rate are at higher risk of unexpected healthcare events.Kuhn also addressed the audience about characterizing cancer over time and metastasis, the spread of a pathogenic agent from one location of the body to another.Presenting data obtained from breast cancer patients, Kuhn stated that there is an issue of space and time due to the different probabilities with which cancer can reach organs in the body. Using a familiar metaphor to explain the concept, Kuhn compared finding cancer cells to looking for a needle in a haystack.Kuhn ended his lecture by providing a brief description and analysis of a treatment product for prostate cancer, developed in conjunction with Epic Science Inc., a company that develops medical diagnostics on tumor cells“We have dozens of therapies available,” Kuhn said. “It is really critical that we get it right every single time, not just the first time but every single time, because every patient will benefit the most if we have choice after choice available for them throughout this journey through cancer.”last_img read more