Saudi Energy Minister Says he Discussed Oil Market with US Counterpart

Saudi Energy Minister Says he Discussed Oil Market with US Counterpart

The next OPEC and non-OPEC ministerial meeting will be held in Vienna, Austria, in April 2019 to review the impact of the deal on the global oil market.

Crude oil, along with natural gas, is Azerbaijan's main export.

Also on Tuesday came word from Alexander Novak, energy minister for Russia, that his country plans to cut its oil output by at least 50,000 to 60,000 bpd in January under the OPEC agreement; this means Russian oil output will be around 11.35 million bpd next month, compared to its post Soviet-record high of 11.41 million bpd in October. Brent crude is down almost 30 percent from its October highs of more than $86.

OPEC cuts: sufficient or not?

If we do see further contractions to USA stockpiles, there is a strong chance that we will see crude start to gain ground.


In January 2018, daily oil production stood at 814,600 barrels, in February 2018 - at 806,000 barrels, in March - 794,000 barrels, in April - 785,700 barrels, in May - 801,000 barrels, in June - 792,000 barrels, in July - 773,000 barrels, in August - 774,000 barrels, In September - 796,000 barrels and in October - 783,000 barrels of oil per day.

NOC said on Monday that the shutdown of the El Sharara oil field would result in a production loss of 315,000 barrels per day (bpd.), and an additional loss of 73,000 bpd.at the El Feel oil field.

Citi, meanwhile, sees oil going nowhere in 2019 and staying at $60 a barrel.

"This is a major step forward", said United Arab Emirates' Energy Minister Suhail Mohamed al-Mazrouei, who is also President of the OPEC Conference.


Commenting on US pressures, the UAE's Energy Minister Suhail al-Mazroui said OPEC "won't take instructions from anyone".

Kotak Institutional Equities expects a gradual recovery in crude prices from the recent lows, as the proposed curtailment by OPEC and Canada will balance the global oil supply demand in the near term, especially as seasonally weak demand season gets over in Q1CY19.

The global benchmark Brent crude was trading at $62.06 per barrel with a 0.6 percent gain at 0610 GMT, after closing Friday at $61.67 a barrel, while the American benchmark West Texas Intermediate was up 0.3 percent at $52.55 a barrel.

BAML's forecast is supported by its outlook for global demand, which it expects at 1.3 million bpd, consistent with above trend global gross domestic product growth of 3.6 percent.


"There are a number of factors to suggest the cuts were deep enough, that we will start to see a resumption to the upside in oil prices, but certainly we don't see oil prices moving up to the $90, $100 level that maybe we could've seen", the analyst said, adding, "We think that the only certainty is uncertainty at the moment".

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