So, taking the words of the four major producers and putting them together and you end up with one saying they will supply as much oil as their customers need and that there is no need for a freeze now (Saudi Arabia), one saying a freeze would be nice (Russia) and two saying they plan to increase output and exports (Iran and Iraq).
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Oil prices rose Thursday awaiting data on the size of energy inventories in the U.S., as markets brush off the prospect of a deal to tackle a global supply glut. The banks expect West Texas Intermediate, the US oil gauge, to average $55 a barrel next year, unchanged from the previous survey. Saudi Arabia is flooding the market with oil that pushes down the price at the pumps in an effort to counteract the growth of U.S. and Canadian shale oil.
Oil prices pulled back on profit-taking on Friday after settling more than 4 per cent higher a day earlier, following a surprisingly huge drawdown in United States crude stocks as Gulf Coast imports slumped to a record low.
Cuts are the most unlikely scenario, said Capital Economics’s Pugh. Generally, I think we’ll see lower prices going forward.
However, an upcoming two days meeting to be held in Algeria on September 26-28 between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC nations, including Russian Federation, could produce the desired results, which is an output freeze.
While it will be a hard decision for oil producers to agree to freeze output, Bouterfa said he is optimistic about the talks in Algiers.
We’re half a decade into an era of having EVs on the road in significant numbers, and more EV models are planned for the near future, but the Organization of the Petroleum Exporting Countries, better known as OPEC, doesn’t seem too anxious, according to The Financial Times. Unlike Saudi Arabia, Russia seems to care more about getting a good price for its oil than any political consideration.
Nigeria’s production rose to 1.456 million barrels a day in August from 1.27 million barrels a day, the person said.
Iran agreed to cooperate with the deal only if fellow exporters recognised its right to increase market share to past levels at a time when no nuclear-related sanctions were imposed. Its present rate of production is slightly over 3.8 million barrels per day, not far away from its pre-sanction levels of over 4 million.
Seyed Mohsen Ghamsari, director of global affairs at National Iranian Oil Co, said on Monday Iran was ready to raise production to 4 million bpd in the next two to three months depending on market demand.
“It is possible that there may be a chance to reach an agreement at the meeting in Algeria”.
There are other headaches for oil bulls, analysts say.
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That’s why the present machinations of meetings, statements, rumors and speculation are likely to continue for some time as the producers try to engineer a price and then keep it there. The number of rigs drilling for oil in the USA has climbed in nine of the past 10 weeks, according to oil-field services company Baker Hughes Inc.
