Saudi Arabia persuades Iran and OPEC to agree increase in oil production

High oil prices hurting fiscal balance, says Pradhan

High oil prices hurting fiscal balance, says Pradhan

Russian Federation has proposed Opec and non-Opec raise output by 1.5 million barrels per day (bpd), effectively wiping out existing production cuts of 1.8 million bpd that have helped rebalance the market in the past 18 months and lifted oil to $75 per barrel.

During the meeting, the group is expected to raise crude output after more than a year of cutting it to stabilize once-falling prices.

The initial public offering of Saudi oil giant Aramco-which has already been likely pushed to 2019 from the second half of 2018-could be postponed even further, for after 2019, comments by Saudi Energy Minister Khalid al-Falih suggested on Thursday.

While India is not in favour of oil prices as low as $30 a barrel, the prevailing price levels are too high and stand to hurt the country's fiscal situation, Petroleum Minister Dharmendra Pradhan said on Wednesday.

Oil prices have spiked by as much as 20% this year, in part because OPEC has produced even less than was foreseen under the 2016 agreement, which was supposed to reduce supply by 1.8 million barrels per day. Trump has used Twitter to complain about high oil prices - and blame OPEC - twice since April.

Zanganeh has said the US president is to blame for high prices because of his decision to reimpose sanctions on Iran.

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The real increase, however, will be around 770,000 bpd, according to Iraq, because several countries that recently suffered production declines will struggle to reach full quotas, while other producers may not be able to fill the gap.

Tehran had bridled at complaints on Twitter by U.S. president Donald Trump that the cartel was artificially inflating oil prices, which touched $80 a barrel last month.

"What strikes me most is the great alignment, the very strong alignment between the interests of producers and consumers and many people underestimate how much alignment of interests there is between producers and consumers of petroleum", he said in his speech. The worldwide benchmark, Brent, was at $74.19 a barrel on Friday. If we lose a million bpd of output from Venezuela and Iran in the fourth quarter, where will all these barrels come from?

Domestic crude oil production falls by 2.95%. OPEC, he said, "is not an organization to receive the instruction from President Trump and follow it".

EUR: Eurozone PMI data for June had been generally mixed with the service reading rising to a 4-month high at 55, above forecasts, while manufacturing remained stagnant at an 18-month low of 55, which was in line with expectations as increased trade war tariff tensions continued to weigh on the manufacturing sentiment. Segun Ajibola expressed concern over Nigeria's inability to determine global realities, adding that outcome of market decision could frustrate implementation of the budget, considering that oil revenue remained the country's basic income.The re-balance in the oil sector had aided Nigeria to exit economic shortfall and boosted reserves but Ajibola was anxious about the country's continuous dependence on a single source of revenue. That would effectively mean a modest boost from producers such as Saudi Arabia that have voluntarily cut more deeply than planned.

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