Saudi energy minister, Khalid Al-Falih, was touring Russia over the weekend and suggested that there could be a further cut in oil production if oil inventories did not start to drop dramatically. While Al-Falih believes we will start to see inventory tightening accelerate in the coming weeks, he said that if we don’t see inventory drop, then an extension of cuts or a larger cut may be implemented and said that nothing, when it comes to getting the oil market in line, will be off the table.
Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE, NY 12.17) is to buy a portfolio of royalties, streams and offtakes from Orion Mine Finance for CA$675 million in cash and CA$450 million in shares. This is "the big deal" Osisko shareholders have been waiting for, and is transformational for the company, adding to and diversifying its revenue sources. It immediately doubles cash flow.
Why did the API report that crude supply fell almost 5.0 million barrels and the EIA reported an increase? Part of the reason is a drop in refinery runs and the reclassification of some supply released again from the Strategic Petroleum Reserve.