Tuesday , November 24 2020

OPEC, global oil production in the spotlight

Crude oil prices fell on Thursday, when record oil production in the US increased concerns about the return of global oversupply, fueling talks with OPEC that production curbs may become necessary again to prevent supersaturation.

Futures contracts for Brent crude oil at the end of the month amounted to 71.93 USD per barrel at 00301 GMT, which is 14 cents from their last closure.

Raw futures contracts on the American market in Texas (WTI) amounted to 61.68 USD per barrel, that is practically since the last settlement.

Benjamin Lu from Singapore's Phillip Futures broker general said: "Oil prices are still showing … weak influences in the face of market concerns about growing global stocks … (and as) rising production levels threaten to disrupt supply foundations in the fourth quarter of 2018. "

A group of producers in the region dominated by the Middle East, the organization of oil exporting countries (OPEC), and Russia, decided in June last year R., to breathe the initial restrictions from 2017, After pressure from US President Donald Trump, reduce oil prices and make up for losses from Iran.

However, after the introduction of Iran's sanctions and the continued availability of oil, next year it can not be ruled out that the OPEC production cuts, two OPEC sources said on Wednesday.

"OPEC and Russia can use cuts to support 70 USD per barrel," said Ole Hansen, head of strategy for goods at Saxo Bank.

"The introduction of US sanctions earlier this week against Iran has not increased the market, given the announcement that eight countries, including the world's three largest importers, will be exempted from buying Iranian oil for up to six months," Hansen said.

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