Saturday , May 21 2022

OPEC, global oil production in the spotlight


The oil price dropped on Thursday, as crude oil production in the US has raised concerns about a global surplus surge that has led to a discussion in OPEC that production currencies may become necessary again to prevent a joint.

Brent short-term futures were $ 71.93 / barrel at 00301 GMT, down 14 cents since their last closing.

The futures trading on the US West Texas Intermediate (WTI) stock exchange futures was $ 61.68 per barrel, basically flat since their last settlement.

Benjamin Lu of Singapore's Phillip Futures brokerage said that overall, "Oil prices continue to show … average influence in the midst of market concerns in global stock growth … (and that) rising production levels threatens to destroy the foundations of supply in Q4 2018. "

A group of producers in the Middle East, dominated by the Organization of Overseas Exporting Countries (OPEC) as well as Russia, decided in June last year to relax the production curves in force since 2017, following pressure by US President Donald Trump reduce oil prices and offset supply losses from Iran.

But with Iran's sanctions in force and oil still largely available, production cuts led by OPEC next year can not be ruled out, two OPEC sources said on Wednesday.

"OPEC and Russia can use reductions to support $ 70 a barrel," said Ole Hansen, head of Saxo Bank's cargo strategy.

"The introduction of US sanctions earlier this week against Iran has failed to raise the market, given the announcement that eight countries, including three of the world's largest importers, will be exempted from buying Iranian crude oil for up to six months, "Hansen said.

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