Oil slips below $64 as United States output, higher inventories weigh

Ann Santiago
February 16, 2018

Crude inventories rose by 1.8 million barrels in the week to February 9, the U.

"Market volatility is a common concern for producers and consumers, and the Kingdom is committed to mitigating this volatility and moderating its negative impacts by responsibly meeting its pledges" under an OPEC-led supply cut deal.

In an interview with S&P Global Platts published earlier this week, Novak said that Russian Federation wanted to build a long-term relationship with Saudi Arabia and the broad OPEC alliance once their agreement expires.

The Organization of the Petroleum Exporting Countries and outside producers including Russian Federation are reducing output to get rid of a supply glut. S. crude and gasoline inventories rose last week, U. The cuts started a year ago and will run until the end of 2018.

"Market volatility is unfortunate but ultimately it is the fundamentals that I watch".

The idea to follow up on the current OPEC/non-OPEC cooperation came originally from OPEC's Secretary General Mohammad Barkindo, who said as early as in October past year that the partnership could be institutionalized. Then the OPEC+ group cut production by 37% more than predicted, says IEA.

It expects USA production will soon overtake that of Saudi Arabia and by the end of this year, could also exceed Russian output to become the global leader.

Correspondingly, global oil demand growth also picked up during the year, rising from an estimated 1.3 million barrels per day at last year's Symposium for 2017, to the present level of 1.6 million barrels per day, said Barkindo, adding that the same healthy level is expected in 2018.

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