Azerbaijan reports on implementation of OPEC+ deal for November

Azerbaijan reports on implementation of OPEC+ deal for November

Azerbaijan reports on implementation of OPEC+ deal for November

"The market have asked us to take action and increase production a few months ago and we did".

He disclosed that his country would reduce oil supplies by 2.5% in January compared to the level of October.

After the OPEC plus announcement on Friday of a 1.2 million barrel in production cut, generally in line with expectations of cuts between 1.1 million and 1.4 million following recent plunges in crude oil prices, concerns that the market may still be oversupplied lingered.

International Brent crude oil futures had yet to trade.

Moreover, the EIA believes US oil production will average 12.06 million bpd in 2019, up 1.18 million bpd from the prior year.

The next OPEC and non-OPEC ministerial meeting will be held in Vienna, Austria, in April 2019 to review the impact of the deal on the global oil market.

The Saudi minister noted before the meeting that the oil pumpers are looking for a sufficient cut to balance the market.

According to the U.S. Energy Information Administration (EIA), the export level exceeded the import level of crude oil, making the world's top oil producer a net exporter for the first time in 75 years.

Citigroup said Monday in a note that output cuts from the cartel and its allies, dubbed as OPEC+, would encourage US shale producers to pump more crude to the global oil market.

"As good as it looks, our view is that it will not be able to provide long-term price supports because it could not help global oil inventories deplete".

Some countries have been applied a compromise within the framework of the agreement on reduction of oil production. WTI and Brent settled at 50.93U.S. dollars and 58.71 dollars per barrel, respectively, at the end of the week.

According to the International Energy Agency (IEA), the demand for crude oil produced by OPEC countries at the world market is now at 31.3 million barrels. An oil output cut would also provide the Iran, as it will be increasing the crude price, supporting the economy of OPEC's third largest producer. The contributions from OPEC and non-OPEC will correspond to 800,000 barrels per day and 400,000 barrels per day, respectively.

OPEC agreed to cut production by 800,000 barrels bpd, led mainly by Saudi Arabia, while non-members will cut by 400,000 bpd, with most of that shouldered by Russian Federation.

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.

Related news

[an error occurred while processing the directive]