The October futures price for WTI crude oil increased by 1.81% to $48.37 at the New York Mercantile Exchange (NYMEX), Interfax -Azerbaijan reports.
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“There is no price war”, the minister said in an interview with Al-Arabiya television, explaining that attempts by other countries to raise production and gain market share are “normal”. The glut was mainly a effect of major producers, in particular members of the Organization of the Petroleum Exporting Countries, opting to ramp up their production to protect their market shares, rather than scale back output to boost prices. The global benchmark crude dropped 1.8 percent on Tuesday. Opposition from Iraq, along with the questionable commitment from Saudi Arabia and the outright opposition from Iran, made any positive result hard to fathom.
The EIA (U.S. Energy Information Administration) will release its crude oil inventory report for the week ending August 26 on August 31, 2016, at 10:30 AM EST.
Purely in terms of public statements, Iraq’s intentions leading up to the OPEC summit are erratic at best: Al-Abadi was quoted by Reuters on August 23 as saying his country still hadn’t raised production sufficiently, and he urged oil companies to boost output (he had previously instructed them to cut investment). Analysts expect Iran to dole out the same stance when the 14-member OPEC bloc meets later this month in Algeria. Currently, Kurdistan exports approximately 500,000 barrels per day of oil via Turkey, to Baghdad’s dismay.
Saudi Arabia had raised production in June and July, hitting record output levels, to respond to a seasonal increase in demand and higher export requirements taking place in the Middle Eastern nation.
The Journal adds that “A host of analysts have said those two countries’ opposing interests are likely to scuttle any deal, which would require a unanimous vote of OPEC members”.
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ICE gasoil for September changed hands at $426.50 a metric ton, down $1.50 from Tuesday’s settlement.
