OPEC, non-cartel agree to share increased oil production

OPEC strikes deal to boost oil production | TheHill

Saudi Arabia persuades Iran and OPEC to agree increase in oil production

However, OPEC sources said that the actual increase in oil production would be less than expected because several countries which have produced less than their quotas will find it hard to return to their full output, and other producers will not be allowed to fill the gap.

But it remains to be seen what kind of compromise could emerge, given Iran's deep aversion to any attempt by OPEC allies to offset its expected production losses as a result of the impending U.S. sanctions.

USA stocks are closing higher Friday as oil prices and energy companies rallied.

Iran does not believe its customers will get waivers from the USA government that would allow them to continue crude purchases, Iranian Minister of Petroleum Bijan Namdar Zangeneh said in a Bloomberg Television interview on Friday.

After a meeting in Vienna, Emirati Energy Minister Suhail al-Mazrouei said the cartel made a decision to fully comply with its existing production ceiling. And after OPEC's deal on Friday, Trump tweeted: "Hope OPEC will increase output substantially". "But because we went away from allocation on a pro-rata basis, we will be closer to 1 million than to 600,000 barrels a day". Venezuela will raise its production when it can.

Major producers outside the Organization of Petroleum Exporting Countries - including Mexico and Kazakhstan - met ministers from the cartel on Saturday and endorsed a nominal output increase of 1 million barrels a day, said Ecuador's Minister of Hydrocarbons Carlos Perez. Yesterday, the Brent-WTI spread narrowed once again as WTI moved higher while Brent prices fell.

Recalling the 171st OPEC Conference Resolution reached on 30 November 2016 for a production adjustment of 1.2 million barrels a day (mb/d) for OPEC Member Countries, with the understanding reached with key non-OPEC participating countries, including The Russian Federation, to contribute a production adjustment of 0.6 mb/d.

Ahmed Musa scores twice to give Nigeria 2-0 win over Iceland
Wilfred Ndidi forced Hannes Halldorsson into a fine fingertip save with a wickedly dipping shot from distance in the 58th minute. Musa deftly controlled the ball before slamming it past Iceland goalkeeper Hannes Halldorsson on the half-volley.

Brent crude was up 2.7 percent on the week, while United States crude was up 5.5 percent. Countries that do so will be cheating on the deal, the delegate said, asking not to be named because of the sensitivity of the matter. His administration quietly asked Saudi Arabia and some other Opec producers to increase oil production by about 1mn bpd.

Top global exporter Saudi Arabia will increase output by hundreds of thousands of barrels, he said, with exact figures to be decided later. "This means that Saudi Arabia can increase its production by less than 100,000 bpd", Zanganeh told Argus Media. That being said we also need to see how the increase and implementation will take place and how much actual crude will hit the market.

Importantly, the 100 per cent compliance target is for the group as a whole, not for individual members.

The vague language may help to preserve the hard-won unity of the group of 24 oil producers, whose cooperation ended a three-year price slump.

"But this does not mean that Venezuela's production should be produced by some other". I think that the OPEC decision is acceptable and reasonable.

"With the looming threat of an Iran walkout, the best you could get was deliberate ambiguity", said Helima Croft, global head of commodity strategy at RBC Capital Markets.

US Energy Secretary Rick Perry will meet Russia's oil minister next week in Washington, a person familiar with the situation said on Friday, as the two countries compete to supply global markets with natural gas and crude.

Latest News