Chevron Corp CVX:NYSE

Last Price$94.69NYSE Closing Price as of 4:10PM ET 6/02/20
NYSE 15-minute delayed Bid/Ask Quotes
Today's Change+1.90(2.05%)
Bid (Size)$94.60 (2)
Ask (Size)$94.75 (2)
Day Low / High$93.29 - 95.22
Volume7.9 M

Update: Crude Hit as OPEC+ Decision on Deepening of Output Cuts Deferred While IEA Warns of 2020 Surplus

3:26PM ET 9/13/2019 MT Newswires
(Updates with price move, EIA/Goldman Sachs reports and general market commentary from first paragraph.)

Crude fell on Friday and headed for a weekly decline after a decision on deepening of joint production cuts by a producers' cartel was deferred to December and the International Energy Agency warned a "significant surplus" in 2020 would add pressure to prices.

A joint ministerial monitoring committee of the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers -- commonly known as OPEC+ -- led by Russia met in Abu Dhabi Thursday and agreed to defer any adjustment to the ongoing 1.2 million barrels per day of cuts until the biennial meeting of the cartel in early December at Vienna, Austria.

"The market was disappointed that OPEC+ didn't consider deepening production cuts," a report from S&P Global said, citing ANZ analysts Friday.

Earlier in the week, the International Energy Agency warned of a surge in production from outside OPEC, saying a "significant surplus" in 2020 will undermine prices. The agency said in a closely watched report output was growing "strongly" on an annual basis, rising this year by 1.25 million barrels per day, with 1 million barrels per day of growth set to come in 2020.

In Norway, the agency said long-awaited projects were coming on stream earlier than expected and may ramp up to peak production ahead of schedule. It also noted oil production in Brazil was growing "fast," reaching 3 million barrels per day in August, which is 0.4 million barrels per day higher than just two months earlier.

"The challenge of market management remains a daunting one well into 2020," the report said.

Andy Lipow, founder & president of Lipow Oil Associates, was cited as saying in a Goldman Sachs report Monday that demand growth continued to be revised downward, with most forecasts starting the year around 1.3 million barrels per day of growth and now revised down to about 1 million barrels per day.

Lipow, who is broadly bearish on the oil macro outlook, said: "While OPEC cuts are expected to support the macro, growth elsewhere including from US shale continues to drive more bearish sentiment."

On Wednesday, the Energy Information Administration said crude stockpiles slumped by 6.9 million barrels over a week to Sept. 6 - that compares with a 2.7 million drop in a Reuters' survey of analysts. The weekly decline was the fourth in a row.

The number of oil rigs operating in the US also fell, declining by five to 733 during the week that ended Sept. 13, the lowest level since November 2017, according to data compiled by energy services firm Baker Hughes (BHGE). The combined oil and gas rig count in the US dropped by 12 to 886 as gas rigs fell by seven to 153.

In Canada, the number of oil rigs in operation slipped by nine to 93, and gas rigs were down by four to 41 during the week in review. As a result, the North American total slumped by 25 to 1,020 versus 1,281 a year ago, the data showed.

Price: 22.64, Change: 0.00, Percent Change: -0.02