Published: Wed, November 15, 2017
Markets | By Rosalie Gross

Oman to attend OPEC meeting on November 30, supports oil cuts extension

Oman to attend OPEC meeting on November 30, supports oil cuts extension

In May, Opec producers agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.2 million bpd agreed in November a year ago.

Traders said that a rise in output from Russia's biggest oil producer, Rosneft, also weighed on crude.

On the supply side, tensions in the Middle East raised the prospect of disruptions, traders said. "Otherwise, it'll trigger a selloff".

Oman's oil minister, Mohammed bin Hamad al-Rumhi, said on Monday that he is confident there will be an agreement among global oil producers later this month to extend output cuts.

OPEC Secretary-General Mohammad Barkindo, speaking at the same event, said participants in the deal were committed to achieving market stability.

The excess of industrialized countries' oil stockpiles over their five-year average "has fallen by more than 50% in 2017, with inventories now at around 160 million barrels", consultancy Timera Energy said.

Crude oil stocks in the US are seen down 2.850 million barrels, while distillates are expected to post a drop of 1.775 million barrels and gasoline inventories are seen down 1.025 million barrels. As that's about 670,000 a day more than Opec produced in the third quarter, global inventories would diminish further in 2018 if the group and its allies continue to keep supplies restrained.

More news: Louis CK's former manager apologizes for ignoring sexual misconduct allegations

Stocks were 154 million barrels above the five-year average, the excess that OPEC aims to eliminate.

"Prices. are starting to look like a pause or pullback is needed", said Greg McKenna, chief market strategist at futures brokerage AxiTrader. "I am certain that if we had not mobilized ourselves when we did, building consensus and jointly taking action in responding to the crisis, the industry would be in worse condition than it is today".

UAE's energy minister said he saw no need for the decision to be delayed beyond the November 30 meeting in Vienna.

"It would have been hard to try to rebalance the market alone and so I think there is a rationale for this group to stay together... and maybe even expand", the UAE's minister said at the Abu Dhabi International Petroleum Exhibition Conference (ADIPEC), as quoted by CNBC.

Oman, a member of the producer committee monitoring the cuts, added its support to prolonging them until the end of 2018.

The price of Iran's light crude oil in the week ended on November 3 rose $2.59 to stand at $60.04 per barrel, IRIB reported on Sunday.

Like this: