Recent developments in the oil market have led to pronounced uncertainty about the second half of the year.
Oil prices were little changed in early Asian trade on Friday, as investors eyed a key OPEC meeting in Vienna and Saudi Arabia and Russia, architects of a producer deal to cut output, indicated they want production to rise.
India on Thursday reiterated its call to end the Asian Premium on oil being charged by OPEC producers and said prices have risen beyond the threshold that can be sustained by the world.
Donald Trump renewed his Twitter assault on OPEC, pushing the case for lower oil prices a week before the cartel meets to set production policy.
India and China, which together accounted for almost 17% of world oil consumption last year, are working on combining their shopping carts with a view to challenging Opec’s capability to play havoc with crude prices and seek better bargains from the cartel of oil exporting countries, especially its West Asian members.
Oil prices fell on Wednesday, pulled down by rising supplies in the United States and expectations that voluntary production cuts led by producer cartel OPEC could be loosened.
OPEC is considering whether or not to raise its oil production to prevent the global market from becoming too squeezed, but there is one part of the world that is telling a very different story about the balance between supply and demand.
After months of sharp oil price rises there is now considerable uncertainty as to the market’s direction for the rest of the year, OPEC said today as a key meeting of oil producers looms.
OPEC said on Tuesday the oil market outlook in the second half of the year is highly uncertain even though the producer group’s figures show a global glut has ended, suggesting exporters will be in no rush to relax output curbs at a meeting next week.
Oil prices were mixed on Monday, caught between the downward pull of rising Russian production and U.S. oil drilling activity at its highest since 2015, and upward pressure from strong demand, especially in Asia.