Oil steady ahead of Opec meeting

The move kept global oil stockpiles near record highs, forcing the Opec first to suggest extending cuts by six months, but later proposing to prolong them by nine months, and Russian Federation offering an unusually long duration of 12 months.

Regardless of the size of this increase the market tends to react with a knee jerk and prices fall, just like they rise whenever an OPEC official says the output cut deal will be extended.

The first phase of the production cuts deal was reached late a year ago to control free falling oil prices that brought a massive trade deficit for oil dependent economies.

Emmanuel Kachikwu, minister of state for petroleum resources, says that Nigeria is not opposed to joining OPEC production cuts but that would only happen when the country is back to full production.

USA oil production C-OUT-T-EIA has already risen by more than 10 percent since mid-2016 to over 9.3 million bpd as drillers take advantage of higher prices and the supply gap left by OPEC and its allies.

WATCH: Can OPEC still control the oil market? .

The market is largely pricing in a 9-month roll over of Opec and non-Opec cuts, with Russian Energy Minister Alexander Novak and Al-Falih due to hold a join briefing at 4pm BST.

The decision, announced Thursday by a high-level meeting of OPEC and non-OPEC ministers, means that the reductions of 1.8 million barrels a day agreed on in November will stay in place until March.

News of the nine-month extension starting emerging when Khalid Al-Falih, Saudi Arabia's energy and industry oil minister told CNBC, "Nine months with the same level of production that our member countries have been producing at is a very safe and nearly certain option to do the trick".

The group could also send a message to the market that it will seek to curtail its oil exports, which have not declined as steeply as its production.

Falih told reporters at the start of the meeting at the headquarters of OPEC that this was "almost certain.to do the trick". Global crude oil inventories are above their five-year average or above 3 billion barrels. "Then, the fourth quarter will get us to where we want".

Falih is not anxious that higher oil prices helped rival shale oil producers in the United States to increase their output and slow down the reduction in inventories.

Related Articles

  • Mallinckrodt PLC (MNK) VP Coleman N. Lannum III Buys 1968 Shares

    Mallinckrodt PLC (MNK) VP Coleman N. Lannum III Buys 1968 Shares

    The company reported $1.68 EPS for the quarter, topping the Thomson Reuters' consensus estimate of $1.63 by $0.05. The business had revenue of $810.90 million for the quarter, compared to analyst estimates of $781.23 million.

    Barclays PLC Reaffirms Hold Rating for Williams Companies Inc (WMB)

    The South Dakota-based Dorsey And Whitney Company Limited Liability Corp has invested 0.05% in Williams Companies Inc (NYSE:WMB). Following the completion of the acquisition, the director now owns 1,000 shares of the company's stock, valued at $30,630.
    LeBron James to Get Over Game 2 With Food and Wine

    LeBron James to Get Over Game 2 With Food and Wine

    Kyrie Irving scored 24 points in the opener and Love had a big day in Game 2, but starters Tristan Thompson and J.R. The Warriors owned the boards, 53-41, handed out 34 assists on 46 makes and were 22-of-24 from the stripe.
  • Anupam Kher to play Manmohan Singh in The Accidental Prime

    Producer Sunil Bohra has stated that this movie is planning to get released in 12 national and worldwide languages. The crisis in Jammu and Kashmir has come to represent the colossal failure of NDA government, said Sonia Gandhi .
    Voodoo Music + Arts Experience 2017 Lineup: Kendrick, Foo Fighters, Killers & More

    Voodoo Music + Arts Experience 2017 Lineup: Kendrick, Foo Fighters, Killers & More

    The Festival gates open at noon each day in New Orleans' City Park on the Festival Grounds near the New Orleans Museum of Art. Platinum tickets will also be available and feature numerous exclusive entertaining packages and components.
    'Ramblin Man' Gregg Allman buried near Hwy 41

    'Ramblin Man' Gregg Allman buried near Hwy 41

    The Allman Brothers Band Museum at the Big House planned a street party in honor of Gregg Allman for Saturday night in Macon. Allman's manager, Michael Lehman , said he died peacefully and surrounded by loved ones after a recurrence of liver cancer.
  • Apple set to unveil smart speaker at annual tech conference

    The research firm IDC says Apple and Xiaomi each has a worldwide market share of almost 15 per cent in the first quarter. On the Mac, macOS will not get a major upgrade and so the next version will be called macOS High Sierra (Version 10.13).
    More than 130 imams refuse to bury London attackers

    More than 130 imams refuse to bury London attackers

    It is often the case that the path towards extremism is outside of the mosque and at the margins of society", he said. Police have named two of the attackers as Khuram Shazad Butt and Rachid Redouane.
    LeBron James taken aside from tunnel amid fan brawl in the stands

    LeBron James taken aside from tunnel amid fan brawl in the stands

    He and Durant combined for 66 points and 18 assists in the opener, then dominated again while the supporting cast shined. Last year, the number was 32 percent and 8 PPG. "We are in the same position that we were in previous year ", Love said.
  • Dhaka upset at US' withdrawal from Paris deal

    White House press secretary Sean Spicer also refused to answer repeated questions on the subject. The environmental left has a very short memory.
    Kathy Griffin Tears Up During Press Conference, Says Trump is Bullying Her

    Kathy Griffin Tears Up During Press Conference, Says Trump is Bullying Her

    Attorney Lisa Bloom says Griffin will discuss the photo and video she and celebrity photographer Tyler Shields posted on Tuesday. Backlash against Griffin has continued to grow and the comedian said five of her performances had been cancelled this week.

    SNP manifesto: Indyref2 'triple lock' but movement on timing

    Scotland rejected independence by 55% in 2014 but the SNP went from strength to strength the following year. If that changes then of course we will have to consider our timing in light of that.