82274
OPEC Deal Closer to Market Rebalancing
OPEC Deal Closer to Market Rebalancing

OPEC Deal Closer to Market Rebalancing

OPEC Deal Closer to Market Rebalancing

The OPEC deal is closer than ever to meeting its market rebalancing goals, with OECD inventories now just 74 million barrels above the five-year average recorded in January 2017, according to a report by Reuters.
When the output reduction deal went into effect at the beginning of last year, inventories were 340 million barrels above the benchmark figure, according to Ayed Al Qahtani, who heads OPEC’s research group, Oil Price reported.
The official made the remarks during the ongoing International Petroleum Week proceedings in London.
“This conformity level has been very successful in withdrawing the overhang,” Al Qahtani told the audience.
OPEC members have been reducing output by 1.2 million barrels per day to push prices upwards.
Markets have been stubbornly bearish since the September 2014 and January 2016 crashes, but the past year has seen some upward movement in the Brent barrel.
There are also roughly a dozen other non-OPEC nations that have pledged to cut 600,000 additional barrels per day, with Russia making half of these additional reductions.
The OPEC and non-OPEC producers will draft a plan for long-term cooperation this year to institutionalize their current collaboration into a super group of oil producers led by Saudi Arabia and Russia, Emirati Energy Minister Suhail al-Mazrouei told The National in an interview published this month.
"The producers aim together with the secretary-general of OPEC, Mohammad Barkindo, to put together a draft agreement for this group of 24 to stay together for a longer time," Mazrouei said.
Putting together a draft charter and discussing it during the year are the UAE’s aspirations, said the minister whose country is currently holding OPEC’s presidency.
The idea to follow up on the current OPEC/non-OPEC cooperation came originally from OPEC’s Secretary-General Mohammad Barkindo who said as early as October last year that the partnership could be institutionalized.

 

Short URL : https://goo.gl/6W95v6
  1. https://goo.gl/NyyAyc
  • https://goo.gl/99jTcv
  • https://goo.gl/QrWCCb
  • https://goo.gl/m4kK7R
  • https://goo.gl/Au7dMR

You can also read ...

Oil prices fell on Monday after China threatened duties on American crude imports in a trade dispute with Washington.
China’s threat to impose duties on US oil imports will hit a...
Venezuela Oil Sales to China Set to Plunge to 8-Year Low
Venezuela’s economic and oil industry demise is likely to...
OPEC members are to meet on  June 22-23 in Vienna.
Iran says Venezuela and Iraq will join it in blocking a...
Equinor Awards $3.7b Service Deals
Norwegian oil and gas firm Equinor has awarded drilling and...
Masjed Soleyman petrochemical project's Phase 1 construction site
The construction operation of the mega petrochemical project...
Hamedan Power Plant  Cuts Gas Consumption
Shahid Mofatteh Power Plant in Hamedan Province has scaled...
Strengthening Local Enterprises Should Be NIOC Priority
The National Iranian Oil Company needs a policy paradigm shift...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus