Saudi Arabia Orders Ministries To Cut At Least 5% In Spending -- March 14, 2016

Tweeting now: Saudi Arabia orders 5% cut in contract spending. Reuters:

Saudi Arabia's government, its finances strained by low oil prices, is opening a fresh austerity drive by ordering ministries to cut their spending on contracts by at least 5 percent, a document seen by Reuters shows.

The spending cuts could further slow economic growth in the world's top oil exporter and hurt the construction industry, where many companies are struggling with deteriorating cash flow and rising labor costs. 

The document, sent by the central government to all ministries and state bodies, instructs them to reduce the value of outstanding contracts signed to support their operations, as well as construction contracts included in the 2016 state budget, by "not less than 5 percent of remaining obligations".

Didn't North Dakota mandate a 4% cut in state spending?

Tweeting now: OPEC, Russia likely to meet in April over production. Bloomberg/Rigzone:

Ministers from some members of the Organization of Petroleum Exporting Countries had suggested that such a meeting would take place this month in Russia.

The talks are now most likely to occur in Qatar’s capital Doha, said three of the delegates, who asked not to be identified because the matter isn’t public.

The probability that Doha will play to host the meeting is high as Qatar is president of the OPEC ministerial conference this year, even as Russia is the country that called for the meeting, two of the delegates said.

The meeting may still not take place if there aren’t many important producers attending and agreeing beforehand to freeze production, three delegates said. 

OPEC data points for 2016. Link here.

• OPEC raises 2016 non-OPEC oil supply estimate by 110,000 bopd to 56.39 million bopd
• OPEC maintains previous forecast of 700,000 bopd year-on-year contraction after revising 2015 figures
• OPEC raised non-OPEC oil supply growth for 2015 (last year) by 110,000 bopd - 1.42 million bopd for an average of 57.09 million bodp
• OPEC notes: in the US -- a reduction in production costs; increased hedging; producers choosing to produce with losses rather than stopping production
• finally: after rising 910,000 bopd last year, OECD Americas' oil supply is expected to see the biggest regional decline this year globally at 480,000 bopd

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Speed Reading

It hit 89 degrees this afternoon; it didn't feel that warm. It was very dry and lots of wind. A beautiful day for reading Doctor Zhivago.

Meanwhile, speaking of Doctor Zhivago, unexpectedly strong winter has returned with a vengeance in the land of Putin:

Freezing poses a risk in the southern European territory.

In the Krasnodar region and Adygea on the nights of 13 and 14 March the ground froze and air temperatures dropped to -1, -2 degrees. The freeze poses a risk to early blossoming apricots and plums.

Morning frost could also endanger emerging winter wheat seedlings.

Continued cooling is forecast for 15 and 16 March in the south of Russia in the Krasnodar Region. On March 15 temperatures are expected to drop to -3 degrees, and on Wednesday -4 degrees is possible in Adygea.