Oil markets await extension of production reduction agreement
02/11/2017 12:00 am
[rtl]Expert for the morning: expectations for stability of prices between 58 - 65 dollars
Baghdad / Sabah / Farah Al-Khafaf
An oil expert predicted the stability of world oil markets by the end of the year as Brent crude prices settled above $ 60.
"The (OPEC) meeting in Vienna next month will put the points on the letters and will determine the future of the markets next year, with the weighting of the extension of the production reduction agreement for six months, which ends next March," Hassan Marzouk told Sabah. The recovery of the markets saw Marzouk said " the commitment of most of the OECD countries and other countries signatories to the agreement, began to bear fruit in real with the recovery of the markets , " expected prices to stabilize between 58 to $ 65 during the next term. " The (OPEC), Russia and nine other countries (including Iraq and Saudi Arabia, the world's largest producer, have agreed to cut 1.8 million barrels per day (bpd) to get rid of oil bottlenecks, and the deal is in place until March 2018. But both Saudi Arabia and Russia, which lead the effort, have shown their support for extending the deal.
On Wednesday, oil prices settled above the $ 61 a barrel mark as traders sold for profit after days of gains, despite the prospect of an increase in US exports. Kirkuk oilfields , traders said yesterday: " The Brent was also influenced by step to increase Iraq 's oil exports from southern ports 220 thousand barrels per day to 3.45 million barrels per day to compensate for disruptions in the northern Kirkuk oilfields supply". Earlier this week, Brent crude futures were down 14 cents, or 0.2 percent, from the previous $ 60.76 a barrel, but were not far from their highest level since July 2015 earlier this week, up about 37 percent from the lowest levels. 2017 recorded last June.
US crude fell 11 cents from the previous close to $ 54.04 a barrel, but remained near its highest level since February, up about 28 percent from the June 2017 low.
Traders said: "There is a sale of profit after the price of crude rose about 5 percent in October." Support for prices But confidence still dominates the market despite minor declines, thanks to efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia to block about 1.8 million barrels per day of oil production in an effort to balance markets and support prices. "The world oil markets are improving and stabilizing," Saudi Energy Minister Khalid al-Faleh said. Al-Faleh praised the cooperation shown by the Iraqi government with his country in the oil field, which ultimately led to "the stability we are currently witnessing in world markets."[/rtl]