Saturday, 18 August, 2018

Oil prices stable in early going as OPEC sees return of balance

Brent Crude Daily January Brent Crude
Nellie Chapman | 10 October, 2017, 14:57

"When we brought together 24 producing countries in December of past year for declaration of cooperation, we made it very clear that it was still open to other producers who might want to join in this voluntary noble initiative to restore stability to the market", he told reporters here.

In November 2016, the 14-member Organization of the Petroleum Exporting Countries (OPEC) agreed to reduce oil production collectively by 1.2 million barrels per day.

In a blog post yesterday, the US State Department said increased Indian purchases of US crude oil are a direct outcome of the June visit of Modi to the White House during which the leaders committed to expanding and elevating bilateral energy cooperation through a Strategic Energy Partnership.

Participants had a "very good, very frank conversation about the new formula for fixing crude prices in the oil market, which I have launched into debate", said Maduro.

Crude prices stabilized after falling more than 2% on Friday, as around 90% of USA oil infrastructure was shut down in the Gulf of Mexico in preparation for Hurricane Nate, which ended up having little impact on the us oil market.

At the moment, Russian Federation and Saudi Arabia are consulting with the other participants on the future of the deal, but no details about the likelihood of reaching a consensus before November 30 have so far been released.

The demand for crude oil in India is expected to grow by over 3 per cent in 2017 at around 4.5 million barrels per day. But US production has soared by nearly 10% this year, driven largely by shale drillers, PTI reported. "The more, the better for the industry as well as global economy", he said. Producers and consumers have converged to restore stability.

Pradhan had earlier raised the issue of premium being charged on oil supplied to Asian countries by some OPEC members when the two last met in Vienna in May this year for the 2nd India-OPEC Institutional Dialogue. From January to now, we have seen 100 per cent conformity to supply adjustments, coupled with positive response and robust demand growth. Barkindo had on Sunday stated that the OPEC and other oil producers might need to take "some extraordinary measures" next year to rebalance the oil market.