Attention will turn towards rising shale oil production in the US and compliance among oil producers as Opec and its allies extend their output cut agreement to the end of 2018, analysts said.
At a meeting in Vienna last week, Opec members and countries outside the group including Russia, Kazakhstan, Oman, Bahrain among others decided to continue cutting production by about 1.8 million barrels per day until the end of 2018, with a clause to reassess the deal during the next Opec meeting in June.
The original deal was to expire in March next year.
“Attention will now increasingly turn to the US, with the market trying to gauge the impact on production growth from a price trading well above $50 (Dh183.65) per barrel,” said Ole Hansen, head of commodity strategy at Saxo Bank. “Weekly production estimates continue to reach new highs and during the past three weeks US drillers have added back almost half of the rigs that were pulled during the previous three months.” Read More…
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