OPEC supports US rock oil
America seems to have become the biggest beneficiary of the decisions of the Organization of Petroleum Exporting Countries (OPEC), supporting US oil production cuts and the US share of crude production, while OPEC members reduce their market share globally.
OPEC's secretary-general Mohammed Barkindo told an energy conference in Houston that US oil companies had benefited from OPEC and its allies' efforts to cut output, which boosted prices.
His remarks came ahead of OPEC's meeting with US oil producers for the third year in a row at the IHS Market Week, but this year's meeting is not as interesting as it has been in the past.
Barkindo said rebalancing the world oil market was "going on," adding that supply controls would continue through 2019.
US production has increased as OPEC moves to restrict supplies to keep prices high. The United States is now the world's largest producer of crude, with more than 12 million barrels a day, surpassing Saudi Arabia and Russia.
According to observers, OPEC put it in a strange position, as its members reduce their market share in support of the US share globally.
On January 1, OPEC and its allies began new production cuts to avoid a speculative supply that could put pressure on prices. The alliance agreed to reduce production by 1.2 million barrels per day for six months.
A senior Gulf oil official said on the sidelines of the "Week of Sera" on Monday that OPEC would discuss in April the balance of supply and demand and that it "will continue to reduce (production)." "We want to see a drop in commercial stocks."
OPEC and its allies, including Russia, meet in Vienna on April 17 and 18, and another meeting is scheduled for June 25-26, 2019.
Sources in the recent period told Reuters that the most likely extension of production cuts in June.
Saudi Energy Minister Khalid al-Falih told Reuters on Sunday it seemed too early to change OPEC production policy and its allies at the April meeting and that China and the United States would lead a strong global demand for crude this year.
Oil prices rose yesterday, supported by strong demand and OPEC-led output cuts, but gains have limited continued US supply growth, while analysts warn of risks to the global economy.
US crude futures for the day were $ 56.92 a barrel, up 13 cents, or 0.2 percent, from the latest settlement. Brent crude was $ 66.65 a barrel, up 7 cents, or 0.1 percent.
Goldman Sachs said this month that OPEC's strategy was to rebalance the market as quickly as possible, before coming out of the cuts at the end of June. In the same vein, Bank of America Merrill Lynch said that, despite adverse economic factors, "we still expect Brent to average $ 70 a barrel this year."