OPEC Chief Expects Oil Market to Balance in 2018

OPEC Chief Expects Oil Market to Balance in 2018

The market was also supported by data showing USA crude stockpiles fell more than expected earlier this month.

USA crude inventories are forecast to have risen by 2.7 million barrels last week, a preliminary Reuters poll showed on Monday.

Strength in the dollar also weighed on crude prices as a rising greenback diminished the appeal of commodities priced in the U.S. currency.

West Texas Intermediate for April delivery was down 16 cents at $63.75/bbl on the New York Mercantile Exchange at 3:56 Singapore. The accord ended a record global oil glut after more than two years of low crude prices that overstretched many state budgets.

The deal to cut oil output by 1.8 million barrels a day (bpd) was adopted last winter by OPEC, Russia and nine other global producers. It's not out of the question to see a USA production record for oil soon. Why?

He said, "The annual production of crude oil in months from January to March will be below the output caps exporting less than 7 million barrels per day".

The prestigious award, which is presented annually by the UK's Energy Institute and Gulf Intelligence, is also in recognition of the leadership displayed by Al Falih in guiding some 20 producing countries from around the world to find common goal in cooperation to reach over 100% compliance with cuts and extend the oil supply pact for a second year through to the end of 2018.

After talks with visiting Saudi oil minister Mr Khalid Al-Falih, Petroleum Minister Mr Dharmendra Pradhan said India is a price sensitive market and so "we must get reasonable price for crude oil and LPG" imported from the OPEC nation.

The prices for oil grow at the expense of strict discipline Saudi Arabia, easing concerns about oversupply of oil in the United States and the disruption of supplies from Libya. It will reassure those Americans that fear the U.S. is always being held to ransom by Middle East, even though the USA spends a huge amount on defending the regions' oil fields - think Desert Storm and all that.

The lower freight costs afforded by the economies of scale of the VLCC cargo opens up the global market for US-produced crude oil.

"Last week's inventory report wasn't bullish, but it also wasn't bearish". "Investors are now keeping a close watch on the US inventory number as growth has been rather slower than expectations".

Market participants were expecting a build in U.S. oil stocks of around 2.1 million barrels, according to an S&P Global Platts preview of the EIA oil stocks data. "We'll see tomorrow what the EIA data says". Analysts had expected an increase of 2.1 million barrels.

"In spite of refiners undergoing maintenance, they continue to process more crude compared to previous years adding to gasoline and diesel supply", said Andrew Lipow, president at Lipow Oil Associates in Houston.