Oil prices and global market are improving, al-Luaibi says

19/09/2017 15:46 AST

Iraq and some other oil producers taking part in global output cuts think they should reduce supply by an additional 1 percent to help re-balance the market, according to Iraqi Oil Minister Jabbar al-Luaibi. Some also favor extending cuts until the end of 2018, he said.

Producers are talking about what to do next regarding the cuts, al-Luaibi said at a conference in the emirate of Fujairah in the United Arab Emirates. There is “no firm decision yet” on further cuts or any extension of the current reductions, he said.

“Some think that cuts should be extended beyond March, three or four months, or six months, or maybe till the end of 2018,” al-Luaibi said. “Some, like Ecuador and other countries, even Iraq, think there should be another cut of 1 percent.”

The Organization of Petroleum Exporting Countries and major suppliers including Russia agreed to trim output by 1.8 million barrels to clear a global glut, led partly by U.S. shale production. They extended their accord through the first quarter, and ministers from Saudi Arabia, Venezuela, the United Arab Emirates and Russia have said producers may consider prolonging the cuts further. Benchmark Brent crude has slid about 2 percent this year and is currently trading at less than $56 a barrel.

OPEC’s decreases in output “are going OK,” while non-OPEC compliance with the targets is less than that of the group, though this is to be expected, al-Luaibi said. Oil prices and the global market are improving, and Iraq sees a “positive trend” in crude markets, he said. Oil demand will continue to increase in the coming two to three years, he said.

Iraq, OPEC’s second-biggest producer, is exceeding its targeted reduction of 210,000 barrels a day by cutting 270,000 barrels a day, al-Luaibi said. Iraq is now pumping 4.32 million or 4.35 million barrels a day, he said. Before the cuts started in January, the country was pumping 4.565 million barrels a day, he said.


Bloomberg

Ticker Price Volume
QNBK 159.00 144,076
SABIC 129.60 5,192,197
SRMG 106.00 898,130
EEC 19.96 1,817,656
APPC 56.30 191,440
KAYAN 16.94 8,892,500
SARCO 44.20 333,418
(In US Dollar) Change Change(%)
Brent 72.9 0.74 1.03
WTI 68.76 0.68 1
OPEC Basket 69.98 -0.4 -0.57
Oil prices mixed as producers release more supply in the market

19/07/2018

Oil prices were mixed on Thursday as the market struggled to digest signs of strong gasoline demand in the US, the world’s biggest consumer of the fuel, with a statement from oil producers that they

Arab News

Oil below $68 as markets gauge supply situation

18/07/2018

Oil traded below $68 (Dh249) as investors weighed the prospect of shrinking US inventories against more supply from Saudi Arabia and America’s emergency hoard.

Futures in New York declined

Gulf News

Kuwait oil price up 74 cents to $71.79 pb

18/07/2018

The price of Kuwaiti oil went up 74 cents Monday to $71.79 per barrel (pb), after being at $71.05 pb Friday, said Kuwait Petroleum Corporation (KPC) on Tuesday. On the global scale, the oil price fal

Arab Times

Oil falls as Saudi Arabia offers more supply, US weighs SPR release

17/07/2018

Oil retreated below $70 (Dh257) a barrel as Saudi Arabia was said to offer extra crude to some customers, while the US was said to consider tapping emergency supplies to offset losses elsewhere.

Gulf News

OPEC only choice; the limit is reached

16/07/2018

To bring the oil prices down to an acceptable “White House” level, which is less than $80 per barrel, the USA administration must ensure all oil-producing countries including OPEC member states conti

Arab Times