It took the better part of a year but the production cut effected by the 14-member cartel, Organisation of Petroleum Exporting Countries (OPEC), in January is beginning to show results.
The world will still have a surplus of oil by end-March next year, Saudi Arabia’s energy minister said, signalling a willingness to extend output cuts when Opec meets at the end of November on whether to extend caps well into 2018.
Crude was down slightly on Friday as expectations that OPEC and other producers will extend their production cut agreement were offset by U.S. drillers adding the most oil rigs in a week since June, indicating output will continue to grow.
Crude oil markets were slightly higher on Friday, supported by continuing supply cuts and expectations that an output deal will be extended at the end of the month.
The turn of events in Saudi Arabia could push crude prices higher, but a bigger driver of prices will be OPEC’s impending decision on extending the production cut.
Global Oil Demand Is Estimated To Plateau Around In The Second Half Of The 2030s On Increasing EV Penetration In The Passenger Car Segment
Global population is estimated to increase from 7.3 billion in 2015 to 9.2 billion in 2040, stated OPEC in World Oil Outlook (WOO). Organization of the Petroleum Exporting Countries (OPEC) further stated, the additional 1.8 billion people will mainly come from Developing countries.
Oil prices hit their highest levels since July 2015 early on Monday as markets tightened, while Saudi Arabia’s crown prince cemented his power over the weekend through an anti-corruption crackdown that included high profile arrests.
Oil prices rose on Friday, nearing their highest levels in more than two years, supported by rising global demand and physical prices and continuing expectations that OPEC and other producing countries will extend a deal to cut output.
Global oil consumption is growing rapidly, helping account for the decline in reported inventories, the recent surge in prices and the shift in futures markets from contango to backwardation.
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