Oil producers are succeeding in re-balancing an oversupplied market, though they may need to take further steps to sustain the recovery into 2018.
Saudi Arabia and Russia are currently leading consultations between the Organization of Petroleum Exporting Countries and other major suppliers about the future of their agreement to cut oil output, Barkindo said Sunday in New Delhi. The pact expires in March, and oil producers are debating whether to extend it later into the year.
OPEC and allied producers agreed in December to pare output to clear a glut and bolster oil prices. The cuts have helped revive crude, which had fallen to half its 2014 peak. Russian President Vladimir Putin last week said the country is open to extending the cut deal to the end of 2018.
United Arab Emirates Energy Minister Suhail Al Mazrouei said he’s optimistic that the next OPEC meeting will lead to a consensus between the group and its non-OPEC partners that will help balance the market in 2018, according to a tweet.
The production cuts have led to a decline in crude inventories and a better balance in the oil market.
Source: Bloomberg Pro Terminal
Junior Trader Stefan Panteleev
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