Oil rises ahead of joint meeting with OPEC countries and expectations of cut production
Baghdad / Range
Oil prices rose on Monday after falling sharply in the previous session, boosted by expectations that the joint meeting of OPEC countries and others from outside could address the rise in production of Nigeria and Libya, members of OPEC, and so far exempted from cutting production.
Ministers from OPEC and non-OPEC oil producers meet in the Russian city of St Petersburg to discuss a cut production agreement of 1.8 million bpd by the end of March 2018.
The committee may recommend a maximum limit for the production of Nigeria and Libya, according to sources familiar with the talks, Although some analysts have expressed deep doubts that the group will make such a move.
Kanim Jokun, a strategic strategist for Japan's Okato Shoji brokerage, said that "
The committee may issue a statement on cooperation in production cuts, but Libya and Nigeria cut production is difficult, as Libya is just starting to emerge from its crisis, for example. "The Financial Times quoted Russian Energy Minister Alexander Novak as saying that maximum production of Libya and Nigeria at the stability of their output.
the price of benchmark Brent for delivery in September 24 cents to $ 48.30 a barrel by 03:16 GMT Monday.
the contract price has fallen at the close on Friday of $ 1.24 , or 2.5 percent, after a sign -up company OPEC production increase in July Despite a pledge to rein in production,
and the price of West Texas Intermediate crude for September delivery rose 17 cents to $ 45.94.
Saudi Arabia, a leading member of the Organization of the Petroleum Exporting Countries (OPEC), said on Monday that the Organization would quickly address the low level of commitment to reduce production by some member states and would monitor the increase in production of Nigeria and Libya,
OPEC has agreed with a number of producers led by Russia to reduce oil production by 1.8 million barrels per day from January 2017 until the end of March next year. But Libya and Nigeria were exempt from the deal to help them recover after years of unrest.
The cutback led crude prices to above $ 58 a barrel in January, but prices have since fallen back to $ 45- $ 50 a barrel, as stockpile reduction efforts took longer than expected.
The increase in US shale oil production has eroded the impact of supply cuts, as is the case for Libya and Nigeria's growing oil production.
"We have to acknowledge that the market has turned to the downside amid several key factors driving this sentiment," Saudi Energy Minister Khalid Al-Falih said at a meeting of OPEC's watchdog committee with independent producers.
Besides Saudi Arabia, the committee includes Russia, Kuwait, Venezuela, Algeria and Oman and has the power to make recommendations for other producers involved in the deal according to market conditions. The committee is expected to announce its position later on Monday.
"The low level of commitment on the part of some Opec members and the increase in the Organization's exports are helping to lower prices," Al-Falih said.
In a related context, Russian Energy Minister Alexander Novak said that Moscow "committed to the agreement to reduce oil production, to an average production of 10.947 million barrels per day in July this year."
Kuwait's oil minister, Essam al-Marzouq, described the commitment of member states and non-members of the Organization to reduce production as "good," hinting at the possibility of more production cuts. He told reporters that a technical committee from OPEC and non-member countries "is satisfied with reports from Libya and Nigeria." Kuwait's oil minister, Essam al-Marzouq, described the commitment of member states and non-members of the Organization to reduce production as "good," hinting at the possibility of more production cuts. He told reporters that a technical committee from OPEC and non-member countries "is satisfied with reports from Libya and Nigeria."