The global oil glut is shrinking and the monetary tightening expected in 2018 isn’t likely to have considerable impact on oil market, particularly in an environment of improving economic growth, OPEC said on Thursday.
The Joint Ministerial Monitoring Committee (JMMC) will meet this weekend in Oman to discuss the ongoing output cuts agreed amongst OPEC and non-OPEC oil producers, but an exit strategy it’s on the agenda, Kallanish Energy understands.
Crude oil production from the Organization of Petroleum Exporting Countries (OPEC) fell by 250,000 barrels per day (BPD) in 2017, which is less than 1%, to average 32.39 million barrels per day (MMBPD).
As Nigeria starts to gradually recover crude oil production following repairs to infrastructure and a temporary ceasefire on attacks by militants, its most well-known rebels group Niger Delta Avengers (NDA) warns the government and oil operators to embrace for the “doom” about to come.
Iraq is reportedly no-longer the less compliant country within the OPEC and non-OPEC oil output pact, not because it has met its production target, but because Kazakhstan has become the biggest over producer.
UAE’s energy minister Suhail Al-Mazrouei, who’s now OPEC president, said on Thursday that rising oil prices are reflecting the positive market sentiment, but a correction in the market remains a working in progress situation, with rebalancing expected to happen sometime this year.
OPEC crude oil production averaged 32.5 million barrels per day (MMBPD) in 2017, a decrease of 0.2 MMBPD from 2016, primarily due to the November 2016 OPEC production agreement designed to limit OPEC crude oil output to 32.5 MMBPD.
There’s a credible risk that production declines in Venezuela will accelerate and potentially be under 1 million barrels per day (MMBPD) by year-end, Citigroup analysts said in a report late on Tuesday, Kallanish Energy learns.
Oil prices fell Friday, dropping from highs last seen in 2015, as soaring U.S. production undermined a 10% rally from December lows that were driven by tightening supply and political tensions in OPEC member Iran, Reuters reported.