Benchmark ICE Brent front-month crude futures ended at $73.44/barrel on June 15, slumped nearly 8% from their 42-month high of $79.80, notched on May 23.
NYMEX WTI plummeted around 10% from its 41-month peak to close the week at $65.06.
After considerable see-sawing of sentiment amid bouts of uncertainty as to whether Russia and Saudi Arabia will be able to steer OPEC and non-OPEC collaborators towards agreeing to a supply boost, the market had come around to the view last Friday that they will. Crude’s slump was pricing in the prospect of a 1 million b/d increase in supply, to be agreed when the oil ministers meet in Vienna June 22-23.
That sentiment took yet another about-turn Monday, June 18. And it now looks like the decision will go down to the wire.
Russia and Saudi Arabia intended to seek a production increase of 1.5 million b/d at the meeting, starting from the third quarter of this year, Russian Energy Minister Alexander Novak said on Saturday (June 16).
Novak's comments underscored that Saudi Arabia and Russia, de facto leaders of the OPEC and non-OPEC blocs participating in the 1.8 million b/d collective production restraint agreements since January 2017, are intent on easing the cuts, despite reservations and outright disagreements expressed by some of their colleagues.
The 1.5 million b/d figure could be the result of a recalculation of the potential gap in global supply since the St. Petersburg meeting of May 25 between Novak and his Saudi counterpart Khalid Al-Falih, when the two agreed that the market needed 1 million b/d more. Or it is simply a classic negotiation tactic for Friday’s meeting — start with a bigger number (an extreme demand) and then make small concessions to the opponent(s).
Saudi Arabia, for its part, is said to be discussing options ranging from a hike of 500,000 b/d to 1 million b/d.
Despite the weight Novak and Al-Falih carry, the upcoming meeting could end up being rancorous, with plenty of horse-trading, ending in a compromise decision.
Iran has set itself up in direct opposition to the big-two, saying it will veto any proposal to increase output, along with fellow OPEC members Iraq and Venezuela.
“If the Kingdom of Saudi Arabia and Russia want to increase production, this requires unanimity. If the two want to act alone, that’s a breach of the cooperation agreement," Iran's OPEC governor Hossein Kazempour Ardebili was quoted as saying by Bloomberg on Sunday.
Something interesting to share?
Join NrgEdge and create your own NrgBuzz today
Already, lubricant players have established their footholds here in Bangladesh, with international brands.
However, the situation is being tough as too many brands entered in this market. So, it is clear, the lubricants brands are struggling to sustain their market shares.
For this reason, we recommend an impression of “Lubricants shelf” to evaluate your brand visibility, which can a key indicator of the market shares of the existing brands.
Every retailer shop has different display shelves and the sellers place different product cans for the end-users. By nature, the sellers have the sole control of those shelves for the preferred product cans.The idea of “Lubricants shelf” may give the marketer an impression, how to penetrate in this competitive market.
The well-known lubricants brands automatically seized the product shelves because of the user demand. But for the struggling brands, this idea can be a key identifier of the business strategy to take over other brands.
The key objective of this impression of “Lubricants shelf” is to create an overview of your brand positioning in this competitive market.
A discussion on Lubricants Shelves; from the evaluation perspective, a discussion ground has been created to solely represent this trade, as well as its other stakeholders.Why “Lubricants shelf” is key to monitor engine oil market?
The lubricants shelves of the overall market have already placed more than 100 brands altogether and the number of brands is increasing day by day.
And the situation is being worsened while so many by name products are taking the different shelves of different clusters. This market has become more overstated in terms of brand names and local products.
You may argue with us; lubricants shelves have no more space to place your new brands. You might get surprised by hearing such a statement. For your information, it’s not a surprising one.
Regularly, lubricants retailers have to welcome the representatives of newly entered brands.
And, business Insiders has depicted this lubricants market as a silent trade with a lot of floating traders.
On an assumption, the annual domestic demand for lubricants oils is around 100 million litres, whereas base oil demand around 140 million litres.
However, the lack of market monitoring and the least reporting makes the lubricants trade unnoticeable to the public.
Headline crude prices for the week beginning 11 February 2019 – Brent: US$61/b; WTI: US$52/b
Headlines of the week
Midstream & Downstream
Global liquid fuels
Electricity, coal, renewables, and emissions