China Join Hands to Counter OPEC’s Dominance in Asian Oil Market

China Join Hands to Counter OPEC’s Dominance in Asian Oil Market

China Join Hands to Counter OPEC’s Dominance in Asian Oil Market

Iraq, OPEC's second-largest producer, said the group should resist pressure to increase oil supplies because its curbs haven't yet achieved their objective, with crude prices still below the desired level.

The change in Saudi tone came after major oil consuming nations, including the U.S., India and China, complained about rising fuel prices. They started output cuts in 2017 to prop up prices that had been dragged down by a supply glut.

The Joint Ministerial Monitoring Committee (JMMC) representing the 24 Opec and non-Opec producing countries participating in the voluntary production adjustments will next meet in Vienna on June 21.

Opec and its allies had accomplished their mission of reducing global oil stocks to desired levels, the International Energy Agency (IEA) reported in April, signalling that the market could become too tight if supply remained restrained. Prices have risen around 60 percent over the a year ago.

"Iran has already signaled that it will resist any such attempts and blames the USA for the price rise".

Cumulative crude oil output from Nigeria's oil industry decreased from 1.88million barrels per day (mbd) in April to 1.73 mbd in May, indicting steady decline as host community issues and social instability in operating environment begin to impact production.

OPEC flows were already higher in May, led by Saudi Arabia, the IEA said, adding that the oil kingpin was still in compliance with the Vienna deal caps.

The firm's parent, Oil and Natural Gas Corp (ONGC), in a regulatory filing, said Venezuela had not paid OVL $449 million (about Rs 3,305 crore) of accrued dividend for four years.

Russian Federation thinks that its proposed production level would result in stable oil prices during the peak summer demand season in the northern hemisphere.

"Draws in crude oil inventories, healthy oil demand and geo-political developments have supported this rising trend".

"The important to us, but. we have not received any official communication, or even unofficial communication, from the administration", he told CNN.

Russia, alongside Saudi Arabia, has the highest spare capacity to boost production.

The output failures in Nigeria combined with production deficits in other OPEC members to cut the group's May production down to a 13-month low of 31.90 mbd, Platts figures indicated. Saudi Aramco, as the company is known, earlier this month raised pricing on key crude grades for buyers in Asia to the highest since 2014, giving a sign it sees sufficient demand for its crude in that market.

On the demand side, the EIA expects US oil consumption growth in 2018 to rise by 530,000 bpd to 20.41 million bpd compared with a previous forecast of a rise of 500,000 bpd to 20.38 million bpd. The kingdom's output in May was about 10 million bpd.

The kingdom did this during wars in the Gulf and Iraq, but the surge in output was only sustained for a few months.

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