Oil on longest rising streak in more than a month
- Author: Zachary Reyes May 26, 2017,
May 26, 2017, 14:25
It's targeting production of 1.32 million barrels a day by the end of this year, the NOC said last week in a statement. West Texas Intermediate climbed as much as 3.4 percent to $49.45 a barrel on the New York Mercantile Exchange, while global benchmark Brent increased as much as 3.3 percent to $52.52 on ICE Futures Europe.
Saudi Arabia and Russian Federation said they favor prolonging oil-output cuts by global producers through the end of the first quarter of 2018, setting a firmer time frame for a likely extension of the curbs into next year.
Brent crude futures, the global benchmark for oil prices, were at $50.86 per barrel at 0125 GMT, little changed from their last close at $50.84.
"We assume that the main thing is not the price, but the (intention) to bring average monthly reserves back to the average five-year level", the minister said.
"It has taken some time for stocks to reflect lower supply when volumes produced before output cuts by OPEC and eleven non-OPEC countries took effect are still being absorbed by the market", the report said.
Under the current agreement that started on January 1, the OPEC, and other producers including Russian Federation pledged to cut output by nearly 1.8 million barrels per day (bpd) during the first half of the year.
Supply and demand in the oil market are close to matching up, the IEA said today, but rising United States supply could mitigate landmark OPEC-led production cuts.
However, Naeem Aslam, chief market analyst at Think Markets UK, warned traders were getting carried away with unjustified optimism, highlighting the current production cut has not been able to produce any substantial results so far.
"Russia and Saudi Arabia may be trying to coordinate a push to keep access to their most important market (China) in their favor and encourage Chinese importers to displace alternative cargoes", said Bell.
Major oil producers are preparing to extend output cuts until March 2018 in a bid to reduce a global supply glut.
USA oil output witnessed a steep growth in the last one year by almost 10% since mid-last year and touched 9.3 million bpd production.