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A possibility of oil production cut in 2019 looms large as OPEC and its allies are expected to meet today in Abu Dhabi. In other news. the US granted a waiver to Iraq to import natural gas and energy supplies from Iran for a period of 45 days.
A possibility of oil production cut in 2019 looms large as OPEC and its allies are expected to meet today in Abu Dhabi.
On Saturday. a technical committee representing the coalition estimated that a global oil surplus would return in 2019 production continued at current rates. according to media sources.
However. Saudi Arabia’s Energy Minister Khalid Al-Falih said that it was “too premature“ to discuss output cuts at the moment. Further. Al-Falih agreed in an earlier meeting in Baghdad on joint coordination with Iraq to achieve more stability in the oil market.
The meeting scheduled to happen later today comes as there is rising pressure on OPEC to consider production cuts after a decline in oil prices. On both sides of the Atlantic. crude prices fell on Friday as the US reported mounting stocks.
Brent dipped below $70 a barrel for the first time in six months. while WTI futures plunged ~5% in the last week. signalling the oil was entering a bear phase.
Further to the risk of overproduction. the risk of falling demand from emerging markets also prevails as trade wars intensify between the US and other countries. In other news. the US granted a waiver to Iraq to import natural gas and energy supplies from Iran for a period of 45 days. which comes after several days following the reimposition of sanctions on Tehran`s oil sector. The temporary waiver would give Iraq time to start taking steps towards energy independence. according to the US embassy.
