The American Petroleum Institute published data after markets closed Tuesday showing US crude oil inventories increased by 7.1 million barrels for the week ending February 19.
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Naimi’s comments come a week after a provisional freeze suggestion was mentioned between oil exporters Saudi Arabia, Russia, Qatar and Venezuela.
Gas exports in the next two years will rise to 200 million cubic meters per day provided that “no problem crops up politically”, Zanganeh said, citing Iraq, Pakistan, Oman and some regional countries as the customers of Iranian gas. The oil minister from Iran, which is adding barrels to the market, called the freeze “a joke” shortly before Naimi spoke. Fellow Opec member Iran, meanwhile, is eager to increase output after sanctions over nuclear capability were lifted. “Even if they say they will cut production, they will not deliver”. But he emphasized that producers would not agree to cut production, a disappointment to an industry that was hopeful talks of a freeze were early signs that a real reduction in output could be close at hand.
OPEC, led by Saudi Arabia, abandoned its production target in December, allowing members to pump as much as they wanted. Brent North Sea crude for April, the European benchmark, finished at US$34.41 a barrel in London, up US$1.14 from Tuesday’s settlement.
Dow Chemical CEO Andrew Liveris said Wednesday at an energy conference in Houston that low oil prices are fueling more demand, which will ultimately be good for the global energy sector.
Demand for gasoline and other refined products rose in the week, the EIA said. Saudi Arabia wants Assad removed. Moreover, an output freeze will not reduce the existing glut and will have no impact on prices. The deal, though, is contingent on receiving cooperation from Iran, which has been resistant to cap output as it returns to global energy markets for the first time in nine years.
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Oil has slid from more than $100 a barrel since mid-2014, pressured by excess supply and a decision by the Organization of the Petroleum Exporting Countries to abandon its traditional role of cutting production to boost prices.
