Tuesday, 25 September, 2018

Russian and Saudi energy ministers satisfied with oil market rebalancing - statement

Pic Reuters Pic ReutersSINGAPORE
Nellie Chapman | 22 January, 2018, 10:27

Brent crude futures up 0.29 percent, to $68.81 per barrel, U.S. West Texas Intermediate (WTI) crude futures were at $63.45 a barrel, up 0.22 percent, RIA Novosti reported.

After talks, attitudes are the quota deal to continue, revealed the Saudi Arabian Energy Minister Khalid Al-Falih.

He expressed hope that the situation on the oil market will keep improving.

However, when asked at what stage oil traders could expect OPEC to begin phasing out the current level of production cuts, Mallinson said the major oil producing group would need to wait until the middle of 2018 before it could "confidently" feel the market had leveled out. This is the highest level for the past three years.

OPEC is more sanguine on the supply response from non-OPEC countries, and combined with the disastrous situation in Venezuela, are not as pessimistic as IEA, who indicate that United States output could overtake the Saudi's or even Russian Federation. The Committee includes Venezuela, Kuwait, Algeria, Oman, Russia, Saudi Arabia and the Secretary General of OPEC.

Rival suppliers would be handed the entire 1.3 million barrel-a-day expansion in the global oil market this year, and USA crude output could overtake that of Saudi Arabia and even get close to Russia, IEA data show.

Short-cycle production from the U.S.is reacting to rising prices and, given the 55% increase in crude futures since June 2017, IEA's forecast for US production growth this year was revised up from 870,000 barrels per day (BPD) to 1.1 MMBPD. In December 2016 was a meeting of oil producers outside the OPEC.

Indeed, although excess oil inventories had been reduced by 220m barrels from the 340m barrels at which they stood at the start of 2017, Al-Falih said it was "uncertain that the pace of inventory drawdown would continue in coming months".