Economy

Saudi Arabia and Russian Federation to boost oil output 'by 1 million barrels

Saudi Arabia and Russian Federation to boost oil output 'by 1 million barrels”

Whether the size of the supply increase is ultimately "a million, more, or less, we'll have to wait until June", Mr Al Falih said. "Two years ago we pulled supply".

At the same time, rapidly declining output in Venezuela's as the country's economic turmoil has worsened has posed another risk to supplies.

It is likely the reductions will end in the second half of this year, he said. The Saudis share their customers' "anxiety".

Prices have soared since the start of the cuts previous year, with Brent breaking through $80 this month, triggering concerns that high prices could crimp economic growth and stoke inflation. On 20 April, the president took to Twitter to lambaste the cartel's push for higher prices. The trouble is, officials from several countries in the agreement, both inside OPEC and outside, said they disapproved of the proposal and saw difficulties in reaching a consensus.

"Oil prices could potentially surge to record high levels to force demand destruction very quickly", he wrote. "No good and will not be accepted!" "The Democrats demanded Trump weigh in with OPEC to reverse crude price increases".

What changed? The supply threats posed by the re-imposition of U.S. sanctions on Iran oil exports earlier this month and the quickening collapse of Venezuela's energy industry are both part of the answer, but they're secondary to Donald Trump.

At an economic forum in St. Petersburg, Russia, OPEC's Secretary-General Mohammad Barkindo said Friday the discussion by OPEC to increase supplies followed Trump's tweet.

U.S. WTI futures closed last week at $67.88 per barrel, down almost 4.9 percent for the week.

The Organisation of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC producers led by Russian Federation started withholding output in 2017 to tighten the market and prop up prices. "What we will now do is to commit and get the approvals", said Baru.

Russian Energy Minister Alexander Novak said current cuts were in reality 2.7 million bpd due to a drop in Venezuelan production - somewhere around 1 million bpd higher than the initially agreed reductions.

Saudi Arabia's signal to ease limits on Crude Oil production led to prices falling Friday after a 3-week rally, and OPEC cited an angry Tweet by President Donald Trump as the trigger.

By the second half of 2019, however, SocGen's team expects to oil markets to begin focusing on the January 1, 2020 implementation of the International Maritime Organisation (IMO) low sulphur requirements (0.5%) for global shipping fuel, which should have "major impacts on the products markets".

China has also raised concerns about whether enough oil is being pumped, according to a Saudi statement issued after Energy Minister Falih called China's energy chief on Friday to discuss cooperation between their countries and to review the oil market.



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