OPEC and Russia reject Trump's call for an immediate increase in oil production[/rtl]
[rtl]Editorial Date: 2018/9/23 18:08 • 84 times read[/rtl]
Saudi Arabia and Russia on Sunday ruled out any further immediate increase in crude output, in a virtual rejection of US President Donald Trump's calls for action to calm the market.
energy ministers of OPEC member states and independent producers held a meeting in Algeria, Saudi Energy Minister Khalid al-Faleh told reporters. "I do not affect prices," Saudi Energy Minister Khalid al-Faleh told reporters. The meeting ended without an official recommendation for any further increase in supplies.
Brent crude hit $ 80 a barrel this month, prompting Trump on Thursday to call the Organization of the Petroleum Exporting Countries (OPEC) again to cut prices.
The rise in prices is mainly due to a drop in OPEC member Iran's exports due to new US sanctions.
"We protect the Middle East, and others will not be safe, yet they continue to push oil prices higher!" Trump wrote on Twitter. We will remember that. OPEC, which is monopolizing the market, has to push prices down now! "
"Saudi Arabia has surplus capacity to increase production, but there is no need for such a move at the moment," Faleh said.
"My knowledge is that the markets have sufficient supplies. I have no knowledge that there is any refining company in the world looking for oil and can not get it. "
Russian Energy Minister Alexander Novak said there was no need to increase production immediately, although he believed the US-China trade war and US sanctions on Iran posed new challenges to the oil market.
Omani Oil Minister Mohammed bin Hamad al-Rumhi and his Kuwaiti counterpart Bakhit al-Rashidi told reporters after talks on Sunday that producers had agreed to focus on reaching 100 percent compliance with output cuts agreed at the OPEC meeting in June.
This effectively means offsetting the decline in Iranian production. Al-Ramahi said the specific mechanism for doing so was not discussed.
Trump was not the first criticism of the US president by OPEC.
The rise in gasoline prices on US consumers could cause a political problem for the Republican Party's tramp ahead of November's congressional elections.
Iran, OPEC's third largest producer, accused Trump of being behind the price hikes as a result of sanctions against Tehran and accused its rival in the Saudi region of bowing to US pressure.
On Sunday, Iran's oil minister, Begin Zengane, said Trump's "biggest insult" to Washington's allies in the Middle East.
In an effort to reverse the downward trend in oil prices, which began in 2014 and pushed it up, OPEC, Russia and other allies decided in late 2016 to cut supply by 1.8 million bpd.
But in June of this year, after months when the cuts exceeded the agreed level, mainly because Venezuela and other producers had dropped out of their control, OPEC and its allies agreed to return to 100 percent compliance.
This is equivalent to an increase of about one million barrels per day, but the latest figures show that OPEC and the allies have cut production from the agreed level of 600 thousand barrels per day, which is mainly due to the decline in production of Iran as a result of reducing customers in Europe and Asia for their purchases before the US sanctions.
Iran told OPEC that its output stabilized in August at 3.8 million bpd. OPEC estimates, according to its secondary sources, which include researchers and traffic controllers, that Iran's production of 3.58 million barrels per day.
The Saudi minister said a return to a 100 percent compliance level was the main goal and should be achieved within the next two to three months.
Although it does not explain how, Saudi Arabia is the only producer with significant spare capacity.
"We have a consensus on the need to make up for the reductions and achieve 100 percent compliance, which means we can produce much more than we do today if there is a demand," he said.
"The biggest problem is not in the producing countries, but in the refineries, and in demand. We in Saudi Arabia have not seen a demand for any additional barrels we have not produced. "