UPDATE 10-Oil dives nearly 3 pct after OPEC delays output decision


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    * OPEC ends meeting with no output cuts announced
    * OPEC, Russia to discuss potential supply cut on Friday
    * GRAPHIC-OPEC, U.S. & Russia output: https://tmsnrt.rs/2E0xgTz
    * U.S. turns into net exporter of oil

 (Updates to settlement, details on Friday meeting)
    By Devika  Krishna Kumar
    NEW YORK, Dec 6 (Reuters) - Oil fell nearly 3 percent in
choppy trading on Thursday after OPEC and its allies ended a
meeting without announcing a decision to cut crude output, and
prepared to debate the matter the next day.
    The Organization of the Petroleum Exporting Countries met in
Vienna to decide production policy in coordination with other
countries including Russia, Oman and Kazakhstan.
    OPEC tentatively agreed to cut oil output but was waiting
for a commitment from non-OPEC heavyweight Russia before
deciding volumes.  urn:newsml:reuters.com:*:nL8N1YB1II
    Russian Energy Minister Alexander Novak flew home from
Vienna earlier for talks with President Vladimir Putin in Saint
Petersburg. Novak returns to Austria's capital on Friday for
discussions among Saudi-led OPEC and its allies.
    Saudi Energy Minister Khalid al-Falih said OPEC needed
Russia to cooperate, and said a decision was likely by Friday
evening.  urn:newsml:reuters.com:*:nL8N1YB17A
    "If everybody is not willing to join and contribute equally,
we will wait until they are," al-Falih said. 
    Market watchers had expected a joint cut of 1 million to 1.4
million barrels per day (bpd). The OPEC, non-OPEC meeting is set
to start on Friday at 1100 GMT. 
    "All eyes are now fixated on tomorrow's OPEC+ joint
declaration, and a combined output cut of at least 1 million
barrels per day will be required to see a meaningful recovery in
oil prices," said Abhishek Kumar, senior energy analyst at
Interfax Energy in London.      
    Brent crude futures  LCOc1  fell $1.50, or 2.4 percent, to
$60.06 a barrel, after dropping to a session low of $58.36. U.S.
crude futures fell $1.40, or 2.7 percent, to $51.49, bouncing
off a low of $50.08. 
    The benchmarks have slumped more than 25 percent so far this
    Prices found some support after data showed U.S. crude
stockpiles declined last week, the first drawdown since
September. Inventories had climbed for 10 straight weeks as
domestic production grew to a weekly record at 11.7 million bpd,
data from the U.S. Energy Information Administration (EIA)
showed.  EIA/S   urn:newsml:reuters.com:*:nL1N1YB19Z  
    The United States, however, last week became a net exporter
of crude and refined products for the first time since at least
1973, exporting a net 211,000 bpd, on the back of a jump in
crude exports to a record of 3.2 million bpd, the data showed.
    Crude prices have sagged almost a third since October, in
part due to concerns about oversupply coming to the fore again
as U.S. production rose in tandem with increased output from
Saudi Arabia and Russia. The three countries are the world's
largest producers of oil.       
    OPEC's crude oil production  PRODN-TOTAL  has risen by 4.1
percent since mid-2018, to 33.31 million bpd.
    European equities hit their lowest in two years.
Commodity-sensitive currencies such as the Russian rouble
tumbled on sliding oil prices and the arrest of a top executive
of Chinese tech giant Huawei in Canada for extradition to the
United States, just ahead of crucial trade negotiations between
Washington and Beijing. urn:newsml:reuters.com:*:nL1N1YB1WR     
    Barclays said in its Global Outlook that "investors need to
lower their expectations" and "2019 should be a period of lower
returns and higher volatility." It forecast that the global
economy would "slow over the next several quarters" although it
added that "not one major economy is near recession."
    Ann-Louise Hittle, vice president, macro oils at Wood
Mackenzie, said world oil demand growth is expected to average
close to 1.1 million bpd in 2018 and 2019. 
    "This sits against a backdrop of rapid non-OPEC production
growth ... the strength in non-OPEC production creates pressure
on OPEC to curtail its output for 2019 from recent levels, if
oil prices are to remain stable," Hittle said. 

GRAPHIC-OPEC, Russia & U.S. crude oil production    https://tmsnrt.rs/2QdhkVc
GRAPHIC-U.S. turns into net exporter of oil    https://tmsnrt.rs/2Rz57Xn
 (Additional reporting by Amanda Cooper, Christopher Johnson in
LONDON and Henning Gloystein in SINGAPORE; Editing by Marguerita
Choy and David Gregorio)
 ((devika.kumar@thomsonreuters.com; +1 646 223 6059; Reuters
Messaging: devika.kumar.thomsonreuters.com@reuters.net))

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