Doha – VIJAY SHAH via Qatar National Bank and Investing.com
OPEC (Organization of the Petroleum Exporting Countries), a network of fourteen crude oil producing nations may be likely to continue maintaining its curb on production output for the foreseeable future according to commodity analysts at the Qatar National Bank, as reported by Investing.com today.
Record low oil prices, natural disasters and a rapidly shifting political landscape have given a bullish feel for the oil market. An oversupply of oil on the international market forced OPEC members to agree to limit their outputs in order to prevent a sudden decline in price earlier this year, with a provisional deadline of March 31, 2018, however the Qatari bank’s specialists say it is very likely that OPEC will continue with the production cut further into the new year.
The OPEC decision has also been influenced by higher output from non-OPEC affiliated countries. Non-OPEC output is expected to increase further in 2018, and it is predicted that OPEC will continue the curb till at least the end of next year.
In late September, oil prices reached a high of USD $59 per barrel, as the oil industry recovers from the devastation of Hurricane Harvey wrought upon oilfields in the Gulf Region of the US, and the likelihood of fresh sanction being imposed upon leading oil producer Iran by the Trump administration, who oppose closer links with the country due to its controversial nuclear programme.
Additionally, two OPEC members, Russia and Saudi Arabia had recently engaged in high-level talks aimed at keeping the extension of cuts in place for a long time, with Saudi unilaterally offering to cut its national output by 0.3 million barrels per day, which is over and above the cut it agreed with fellow members. Meanwhile, oil producers outside OPEC have increased their production by 0.7 million barrels per day, with the International Energy Agency (IEA) predicting a non-OPEC increase of 1.5 mbpd in 2018. Libya and Nigeria, though members of OPEC, are excluded from the cuts agreement and have in fact increased their oil exports, while OPEC members have been reported to be struggling to meet compliance rates.
HEM News Agency, Twitter, Twitter Inc. https://twitter.com/halfeatenmind
Dukascopy Forex (EN), Twitter, Twitter Inc. https://twitter.com/FXS_Forex_EN
“OPEC Likely To Extend Cuts Due To Higher Output From Non-OPEC” – Online News powered by Dukascopy/Dukascopy (15 October 2017) https://www.dukascopy.com/news/?languages=en&selectedId=5080556400065759342
“OPEC Likely To Extend Cuts Due To Higher Output From Non-OPEC” – Qatar National Bank, Investing.com/Fusion Media Limited (15 October 2017) https://www.investing.com/analysis/opec-likely-to-extend-cuts-due-to-higher-output-from-nonopec-200218787
“File:OPEC-building-02.jpg” – Priwo, Wikimedia Commons (24 January 2010) https://commons.wikimedia.org/wiki/File:OPEC-building-02.jpg