Saudi Arabia has already made more than its agreed share of output cuts and is confident that Opec’s deal with non-Opec members to trim production would hold, its oil minister said.
Khalid al-Falih said “we have already exceeded it” when asked about the kingdom’s participation in the recently implemented deal among 25 nations to trim output to support prices.
Addressing the Atlantic Council Global Energy Forum in Abu Dhabi, Mr Falih said he was confident that the deal would return the market to balance more quickly.
Saudi Arabia, which bears the heaviest load of Opec’s 1.2m barrel a day cut, has pledged to rein in output by more than 480,000 barrels a day to just above 10m barrels a day. With non-Opec producers, the aim is to reduce output by 1.8m barrels a day.
“I believe the agreement between Opec and non-Opec will hold,” he said, rejecting speculation that compliance would be weak.
Comments out on the wires 12 Jan
- Iraq certainly meeting its OPEC -deal obligations
Want and get are rarely the same but hey, there’ll be a few others with a similar wish list.
WTI currently $52.20 and Brent $55.18 both flat-lined for the moment .
US oil production has turned a corner after a long period of weak petroleum prices, the government said, with volumes rising for the first time since early 2015.
The Energy Information Administration forecast that oil output from the US will increase 1.3 per cent to 9m barrels per day in 2017, abandoning an earlier prediction of a 0.9 per cent fall.
In the first forecast for 2018 in its monthly Short-Term Energy Outlook, the statistical agency said US crude production will rise another 3.3 per cent, or 300,000 b/d, to 9.3m b/d. Production hit bottom last September, EIA said.
“The general decline in US crude oil production that began almost two years ago is likely over, as higher average oil prices and improvements in drilling efficiency are giving a boost to output,” said Adam Sieminski, the EIA’s administrator.
This is a private weekly survey of stock of oil
The official data hits on Wednesday morning US time but for now this is what we get. Sometimes it even bears a passing resemblance to the official data!
The ‘expected’ for this was a 1.2mln barrel build in headline US crude stocks (Reuters polling), the result is of a larger than expected build for the headline stocks of crude
Statement just out from Iraqi oil minister. 10 Jan
- hopes to reach OPEC-agreed level of 210k bpd by end -Jan
Elsewhere Kazakhistan cuts output by 20k bpd re OPEC deal
Oil prices had a little tick upward but short lived.
WTI currently $52.15 Brent $55.07
Crude oil trades near closing levels from yesterday
The WSJ is reporting that the Saudi’s have cut oil output to fully implement the OPEC pledge.
Crude oil futures are trading a $53.29 near the closing level from yesterday.
Crude oil remains between $50 and $55 per barrel. The 50, 100 and 200 hour MA are between $53.03 and $53.51. We trade between those MA levels. Traders may just take clues from the next move. IN favor of the bulls is the floor developed at the $52.12 level in trading on Tuesday and Wednesday. That was the same low area from December 22 (see blue circles). We still need that push above the MA though.