OPEC's Deal To Slash Oil Production Gets Support From Azerbaijan's Government

Adjust Comment Print

"In April, we will have a meeting to review the decision", United Arab Emirates Energy Minister Suhail Al Mazrouei told reporters on the sidelines of a conference in Dubai.

Another American multinational investment bank and financial services firm Morgan Stanley said Monday that it lowered its oil price forecast by $10 a barrel for next year.

In response, the cartel has said that it will cut production by around one million barrels a day next year to 31.4 million barrels pumped in 2019.

Other analysts noted the reduction by the Organization of the Petroleum Exporting Countries and allies, like Russian Federation, may not be deep enough to restore balance to the market especially after the us government confirmed its forecast that the United States would end this year as the new top producing nation. Saudi Arabia, the de facto leader of OPEC, had been facing demands from USA president Donald Trump not to go for the output cut, as it would increase the oil price.

"Secretary Perry advocated for the expansion of joint partnerships with the United States as Qatar seeks to grow its LNG operations around the world", the Department of Energy said.

But some remain bullish yet - Japan's MUFG views Brent and U.S. West Texas Intermediate (WTI) to be "oversold", predicting a "sharp rebound" in coming months, while Societe Generale forecasts Brent at $73 for both 2018 and 2019. Only the OPEC + countries could support the oil market.

Trump spars with Schumer and Pelosi
Democrats have offered $1.3 billion for border security, including physical barriers and technology along the US southern border. Also in a fighting mood, Schumer accused Trump of threatening a shutdown "because you can't get your way".

While the group's cuts will initially reduce inventories and drive prices up, that can spark production in the USA, according to Citigroup Inc. Meanwhile, China's vice premier discussed a timetable and road map on trade talks with his USA counterpart.

After a dramatic summit of OPEC and non-OPEC members over the weekend that triggered an immediate boost in oil prices, the commodity has already dropped back to pre-meeting levels, falling 3.1 percent by the end of Monday.

OPEC and its partners chose to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.

Russian Federation is the second largest crude oil producer in the world after the United States. Analysts estimated crude stocks declined 3 million barrels last week, according to a Reuters poll.

OPEC and non-OPEC producers reached an agreement in December 2016 to curtail oil output jointly and ease a global glut after more than two years of low prices.

Brent for February settlement increased 15 cents to $60.12 a barrel on London's ICE Futures Europe exchange.