AEC urges OPEC members to continue production cuts

Падение цен на нефть стало рекордным за 10 лет

Putin said the world's two biggest exporters of crude "have agreed to extend our agreement", AFP reported, although there was no immediate confirmation from Riyadh.

"While we still need to know by how much OPEC will curb its production, Putin's comment does clear a barrier for OPEC in stabilizing prices as Russian Federation has been ambiguous about its stance", Ahn Yea Ha, a commodities analyst at Kiwoom Securities told Bloomberg News.

"It's hard to predict where oil prices will go from here but they have been heavily oversold", he said. "Against this backdrop, the most likely outcome of next week's OPEC meeting is a fudge".

IG Market Analyst, Kyle Rodday says the news post-OPEC meeting could be significant.

Both main contracts have plunged by about a third since hitting four-year highs at the start of October, hit by a number of factors including easing demand, high production, softer-than-expected USA sanctions on Iran and a global growth slowdown.

By the time trading had finished for November on Friday, the prices of Brent and the United States marker crude - West Texas Intermediate had lost more than 20% over the month, the biggest monthly percentage loss in a decade as traders fretted over a signs of a growing glut in global supplies.

Oil prices tumbled to the lowest level since last October due to overwhelming fears of oversupply.

The price of a barrel of Brent crude in February was $60,23 (+0,53%).

OPEC, especially Saudi Arabia and Russian Federation seem prepared to ignore the constant hectoring from Donald Trump for lower oil prices.

France's President Emmanuel Macron, who has faced intense protests against growing gasoline prices in his country, also called for cheaper oil at the G-20 summit.

US West Texas Intermediate was also able to recover, having dropped below $50 per barrel for the first time since October of the previous year. The contract rose 1.1 percent from last week.

Since October, Russia and Saudi Arabia have been negotiating possible oil production cuts under the OPEC+ deal. However, WTI prices lost 20.9% in November.

The global benchmark, Brent crude, steeply increased on the same day to $59.26 per barrel after closing at $58.12 last Wednesday. February Brent LCOG9, -1.40% settled at $59.46, down 45 cents, or almost 0.8%.

That has left Brent was down about 12% so far this year, as surging oil production in the US, Russia and among key members of OPEC has helped to create a glut in global markets.

Meanwhile, the number of active drilling rigs in the United States decreased by three to 1,076 in the week ending November 30. Thus, Saudi Arabia suggested output be decreased in 2019 by one million barrels a day and said it is ready to curtail exports from December.

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