The Organisation of Oil Producing Countries or OPEC kept its production steady in June, a Bloomberg report said. According to the report, the 13-member OPEC on an average produced 28.57 million barrels a day, a modest rise of 80,000 barrels a day from May.&nbsp;

However, oil production in July is expected to decline as Saudi Arabia is expected to cut oil production by another 1 million barrels per day. The oil-rich kingdom&nbsp;is likely to continue with its additional oil cut in August too,&nbsp;media reports said.&nbsp;&nbsp;

It is not just the world's biggest oil producer that has decided to further cut oil production. Russia, another major oil producer, which has been under&nbsp;Western sanctions after the Ukraine war, has also promised to cut its oil exports by 500,000 barrels per day in August.

In April this year, OPEC+, which includes the OPEC countries and Russia, agreed to voluntarily cut their oil production from May onward. As per reports, the grouping had decided to cut oil production by 1.15 million barrels per day.&nbsp;

The oil producers' grouping has been cutting oil supply to lift up prices since November last year due to weaker Chinese demand and rising US supply. However, it been unable to move oil prices from the range of $70-$80 a barrel.

Initially, there were expectations that the output cut will add pressure on the global oil prices. However, oil prices have dipped about 12 percent in 2023. That is largely due to a lackluster post-pandemic recovery in China and fears of a global recession later this year.&nbsp;

While rising oil prices add&nbsp;to the inflationary pressure across the world, it is good news for top oil producers like Saudi Arabia. The West Asian kingdom is heavily dependent on oil to manage its government budget.&nbsp;

According to the International Monetary Fund, Saudi Arabia needs global oil prices to be over $80 in order to balance its yearly budget.&nbsp;

(With inputs from agencies)

The Organisation of Oil Producing Countries or OPEC kept its production steady in June, a Bloomberg report said. According to the report, the 13-member OPEC on an average produced 28.

The Organisation of Oil Producing Countries or OPEC kept its production steady in June, a Bloomberg report said. According to the report, the 13-member OPEC on an average produced 28.57 million barrels a day, a modest rise of 80,000 barrels a day from May. However, oil production in July is expected to decline as Saudi Arabia is expected to cut oil production by another 1 million barrels per day. The oil-rich kingdom is likely to continue with its additional oil cut in August too, media reports said. It is not just the world's biggest oil producer that has decided to further cut oil production. Russia, another major oil producer, which has been under Western sanctions after the Ukraine war, has also promised to cut its oil exports by 500,000 barrels per day in August. In April this year, OPEC+, which includes the OPEC countries and Russia, agreed to voluntarily cut their oil production from May onward. As per reports, the grouping had decided to cut oil production by 1.15 million barrels per day. The oil producers' grouping has been cutting oil supply to lift up prices since November last year due to weaker Chinese demand and rising US supply. However, it been unable to move oil prices from the range of $70-$80 a barrel. Initially, there were expectations that the output cut will add pressure on the global oil prices. However, oil prices have dipped about 12 percent in 2023. That is largely due to a lackluster post-pandemic recovery in China and fears of a global recession later this year. While rising oil prices add to the inflationary pressure across the world, it is good news for top oil producers like Saudi Arabia. The West Asian kingdom is heavily dependent on oil to manage its government budget. According to the International Monetary Fund, Saudi Arabia needs global oil prices to be over $80 in order to balance its yearly budget. (With inputs from agencies)

OPEC keeps June output steady ahead of anticipated dip in July oil production

According to the International Energy Agency (IEA), the global oil demand is set to reach an all-time high in 2023 as the Chinese economy re-opens after ending its stringent zero-Covid policy. However, the Paris-based watchdog in its report published on Wednesday (January 18) also noted that the ongoing Russian invasion of Ukraine and the consequent Western sanctions on Moscow could affect the supply.&nbsp;

The demand for crude oil could surge by 1.9 million barrels per day (bpd) to reach a record 101.7 million bpd, said the IEA in its first monthly oil report of the year. It also noted, “Two wild cards dominate the 2023 oil market outlook: Russia and China.”&nbsp;This comes after crude oil prices soared last year amid fears of disruptions following Moscow’s invasion of Ukraine, however, later they stabilised as the Russian supply more or less continued while Europe faced an economic slowdown which lowered demand to some extent.&nbsp;

ALSO WATCH:&nbsp;<a href="https://www.wionews.com/videos/russian-oil-continues-to-flow-in-britain-western-hypocrisy-536228">Russian oil continues to flow in Britain | Western Hypocrisy</a>

However, IEA also said that there is a “high degree of uncertainty” about where the prices of oil could, in part, be attributed to the western sanctions on Russia, particularly the upcoming European Union ban on refined products which will take effect from February 5. The report also noted that despite sanctions, Russian oil output in December was dented only by 200,000 bpd.

“Russian supply slows under the full impact of sanctions, China will drive nearly half this global demand growth even as the shape and speed of its reopening remains uncertain,” said the IEA report. Notably, China’s demand for oil plunged for the first time in almost three decades due to the economic slowdown it faced while Beijing’s stringent Covid restrictions were in place.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/opec-decision-of-output-cut-not-aimed-against-us-says-saudi-arabia-525212">OPEC decision of output cut not aimed against US, says Saudi Arabia</a>

However, as the country re-opens, it paves the way for an increase in demand due to travel, trade and business activities. According to the IEA, this could, in turn, lead to a tighter global oil market due to increased demand from China and the “full impact” of Western sanctions on Russian oil.&nbsp;

“The preeminent driver of 2023 GDP and oil demand growth will be the timing and pace of China’s post-lockdown recovery,” said the IEA, as per Reuters.&nbsp;The Paris-based agency also said that the main growth of oil supply growth is set to take place from the United States as the OPEC+ will reduce theirs by 870,000 bpd.&nbsp;

(With inputs from agencies)&nbsp; 
 
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According to the International Energy Agency (IEA), the global oil demand is set to reach an all-time high in 2023 as the Chinese economy re-opens after ending its stringent zero-Covid policy.

According to the International Energy Agency (IEA), the global oil demand is set to reach an all-time high in 2023 as the Chinese economy re-opens after ending its stringent zero-Covid policy. However, the Paris-based watchdog in its report published on Wednesday (January 18) also noted that the ongoing Russian invasion of Ukraine and the consequent Western sanctions on Moscow could affect the supply. The demand for crude oil could surge by 1.9 million barrels per day (bpd) to reach a record 101.7 million bpd, said the IEA in its first monthly oil report of the year. It also noted, “Two wild cards dominate the 2023 oil market outlook: Russia and China.” This comes after crude oil prices soared last year amid fears of disruptions following Moscow’s invasion of Ukraine, however, later they stabilised as the Russian supply more or less continued while Europe faced an economic slowdown which lowered demand to some extent. ALSO WATCH: Russian oil continues to flow in Britain | Western Hypocrisy However, IEA also said that there is a “high degree of uncertainty” about where the prices of oil could, in part, be attributed to the western sanctions on Russia, particularly the upcoming European Union ban on refined products which will take effect from February 5. The report also noted that despite sanctions, Russian oil output in December was dented only by 200,000 bpd. “Russian supply slows under the full impact of sanctions, China will drive nearly half this global demand growth even as the shape and speed of its reopening remains uncertain,” said the IEA report. Notably, China’s demand for oil plunged for the first time in almost three decades due to the economic slowdown it faced while Beijing’s stringent Covid restrictions were in place. ALSO READ | OPEC decision of output cut not aimed against US, says Saudi Arabia However, as the country re-opens, it paves the way for an increase in demand due to travel, trade and business activities. According to the IEA, this could, in turn, lead to a tighter global oil market due to increased demand from China and the “full impact” of Western sanctions on Russian oil. “The preeminent driver of 2023 GDP and oil demand growth will be the timing and pace of China’s post-lockdown recovery,” said the IEA, as per Reuters. The Paris-based agency also said that the main growth of oil supply growth is set to take place from the United States as the OPEC+ will reduce theirs by 870,000 bpd. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Global oil demand to reach an all-time high this year as China re-opens, says IEA

Amid the ongoing war of words between the United States and Saudi Arabia, on Thursday, the White House claimed that Riyadh pushed other OPEC+ nations for the oil cut announced last week. According to National Security Council spokesman John Kirby, “more than one” expressed their disagreement with Saudi Arabia’s push to cut production but were coerced into the vote.&nbsp;

However, he said that he is not going to say which member nations and let them speak for themselves, said a report by Reuters. The spokesperson also indicated that the US showed them an analysis which indicated that there is no market basis to lower oil production, prior to the decision, which Riyadh claims was a “purely economic” decision. 
 
ALSO READ:&nbsp;<a href="https://www.wionews.com/world/opec-decision-of-output-cut-not-aimed-against-us-says-saudi-arabia-525212">OPEC decision of output cut not aimed against US, says Saudi Arabia&nbsp;</a>

The 13-member Organization of the Petroleum Exporting Countries and its allies (OPEC+) also includes Russia. “The Saudi foreign ministry can try to spin or deflect, but the facts are simple,” said Kirby, adding that this output cut would “increase Russian revenues and blunt the effectiveness of sanctions'' which have been imposed on Moscow amid its ongoing invasion of Ukraine, earlier this year, said the report.&nbsp;

Reportedly, the aforementioned analysis also showed that the oil cut could have waited till the next OPEC+ meeting. On the other hand, Saudi Arabia’s foreign ministry in a statement asserted that last week’s decision came after reaching a consensus, which also took into account the balance of supply and demand. The aim of this oil cut, the statement claimed, was to curb market volatility.&nbsp;

ALSO READ:&nbsp;<a href="https://www.wionews.com/world/president-biden-to-consider-us-cooperation-with-saudi-arabia-for-supporting-russia-524517">President Biden ‘re-evaluating’ US-Saudi ties for siding with Russia on OPEC oil cut</a>

The OPEC+ decided last week to cut its production target by two million barrels per day even though the supply of oil in the world is considered to be tight, said the report. This comes ahead of the US midterm elections which will determine if incumbent President Joe Biden and his Democratic party can retain control of the Congress.&nbsp;

Amid the ongoing war of words between the United States and Saudi Arabia, on Thursday, the White House claimed that Riyadh pushed other OPEC+ nations for the oil cut announced last week.

Amid the ongoing war of words between the United States and Saudi Arabia, on Thursday, the White House claimed that Riyadh pushed other OPEC+ nations for the oil cut announced last week. According to National Security Council spokesman John Kirby, “more than one” expressed their disagreement with Saudi Arabia’s push to cut production but were coerced into the vote. However, he said that he is not going to say which member nations and let them speak for themselves, said a report by Reuters. The spokesperson also indicated that the US showed them an analysis which indicated that there is no market basis to lower oil production, prior to the decision, which Riyadh claims was a “purely economic” decision. ALSO READ: OPEC decision of output cut not aimed against US, says Saudi Arabia The 13-member Organization of the Petroleum Exporting Countries and its allies (OPEC+) also includes Russia. “The Saudi foreign ministry can try to spin or deflect, but the facts are simple,” said Kirby, adding that this output cut would “increase Russian revenues and blunt the effectiveness of sanctions'' which have been imposed on Moscow amid its ongoing invasion of Ukraine, earlier this year, said the report. Reportedly, the aforementioned analysis also showed that the oil cut could have waited till the next OPEC+ meeting. On the other hand, Saudi Arabia’s foreign ministry in a statement asserted that last week’s decision came after reaching a consensus, which also took into account the balance of supply and demand. The aim of this oil cut, the statement claimed, was to curb market volatility. ALSO READ: President Biden ‘re-evaluating’ US-Saudi ties for siding with Russia on OPEC oil cut The OPEC+ decided last week to cut its production target by two million barrels per day even though the supply of oil in the world is considered to be tight, said the report. This comes ahead of the US midterm elections which will determine if incumbent President Joe Biden and his Democratic party can retain control of the Congress.

Washington claims Saudi Arabia pushed other OPEC+ nations for oil cut, says report

Oil prices stabilized on Tuesday on expectations that producer group OPEC and its allies will keep withholding supply to prevent prices from tumbling amid a broad economic slowdown which has started eating away at fuel demand growth.

Russia on Monday said it might support an extension of supply cuts that have been in place since January, <a href="https://www.wionews.com/world/russia-warns-of-great-risk-of-oil-overproduction-226037">warning oil prices</a> could fall as low as $30 per barrel if producers supply too much crude.

The Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated producers including Russia, known collectively as OPEC+, have withheld supplies since the start of the year to prop up prices.

<a href="https://www.wionews.com/world/saudi-uae-see-sufficient-oil-supplies-rising-stocks-219977">OPEC+ </a>is due to meet in late June or early July to decide output policy for the rest of the year.

“Due to the general fear of an economic downturn ... (and) the realization that demand growth is slowing ... no one will argue for abandoning (the) OPEC+ accord,” said Fereidun Fesharaki, chairman of energy consultancy FGE, in a note published on Tuesday.

FGE said global crude oil demand growth could drop below 1 million barrels per day (bpd) in 2019, down from previous expectations of 1.3 to 1.4 million bpd.

“This effectively gives us an extra 300,000-400,000 barrels per day of supply,” said Fesharaki.

Oil prices stabilized on Tuesday on expectations that producer group OPEC and its allies will keep withholding supply to prevent prices from tumbling amid a broad economic slowdown which has started eating away at fuel demand growth.

Oil prices stabilized on Tuesday on expectations that producer group OPEC and its allies will keep withholding supply to prevent prices from tumbling amid a broad economic slowdown which has started eating away at fuel demand growth. Russia on Monday said it might support an extension of supply cuts that have been in place since January, warning oil prices could fall as low as $30 per barrel if producers supply too much crude. The Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated producers including Russia, known collectively as OPEC+, have withheld supplies since the start of the year to prop up prices. OPEC+ is due to meet in late June or early July to decide output policy for the rest of the year. “Due to the general fear of an economic downturn ... (and) the realization that demand growth is slowing ... no one will argue for abandoning (the) OPEC+ accord,” said Fereidun Fesharaki, chairman of energy consultancy FGE, in a note published on Tuesday. FGE said global crude oil demand growth could drop below 1 million barrels per day (bpd) in 2019, down from previous expectations of 1.3 to 1.4 million bpd. “This effectively gives us an extra 300,000-400,000 barrels per day of supply,” said Fesharaki.

Oil stable as market eyes ongoing supply cuts amid downturn

Oil prices rose on Wednesday after a report of declining US&nbsp;crude inventories and as producer club OPEC seemed to stick to its supply cuts despite pressure from US&nbsp;President Donald Trump.

US&nbsp;West Texas Intermediate (WTI) crude oil futures were at $55.99 per barrel at 0600 GMT, up 49 cents, or 0.9 per cent, from their last settlement.

International Brent crude futures were at $65.65 per barrel, up 44 cents, or 0.7 per cent from their last close.

US&nbsp;crude oil inventories fell by 4.2 million barrels in the week to February 22, to 444.3 million barrels, the American Petroleum Institute (API) estimated in a weekly report on Tuesday.

Official data will be released by the US&nbsp;Energy Information Administration (EIA) after 1800 GMT on Wednesday.

Oil markets have generally received support this year from supply curbs by the Organization of the Petroleum Exporting Countries (OPEC), which together with some non-affiliated producers like Russia, known as OPEC+, agreed late last year to cut output by 1.2 million barrels per day (bpd) to prop up prices.

And the group has indicated it will continue to withhold supply despite pressure from Trump this week to stop artificially tightening markets.

"Crude oil futures bounced as OPEC members remained firm on planned production cuts despite heightened political pressure from US&nbsp;President Trump early this week," said Benjamin Lu of Singapore-based brokerage Phillip Futures.

Trump tweeted on Monday that oil prices were getting too high for the global economy, asking OPEC to relax its supply cuts.

Despite the OPEC-led curbs, oil remains in ample supply as US&nbsp;crude production has risen by more than 2 million bpd over the past year, to a record 12 million bpd, and because demand growth is low due to a global economic slowdown and improving energy efficiency across industries.

"The OPEC+ production cuts have ... so far failed to create the tightness needed to support a continued rally," said Ole Hansen, head of the commodity strategy at Denmark's Saxo Bank.

Oil prices rose on Wednesday after a report of declining US crude inventories and as producer club OPEC seemed to stick to its supply cuts despite pressure from US President Donald Trump.

Oil prices rose on Wednesday after a report of declining US crude inventories and as producer club OPEC seemed to stick to its supply cuts despite pressure from US President Donald Trump. US West Texas Intermediate (WTI) crude oil futures were at $55.99 per barrel at 0600 GMT, up 49 cents, or 0.9 per cent, from their last settlement. International Brent crude futures were at $65.65 per barrel, up 44 cents, or 0.7 per cent from their last close. US crude oil inventories fell by 4.2 million barrels in the week to February 22, to 444.3 million barrels, the American Petroleum Institute (API) estimated in a weekly report on Tuesday. Official data will be released by the US Energy Information Administration (EIA) after 1800 GMT on Wednesday. Oil markets have generally received support this year from supply curbs by the Organization of the Petroleum Exporting Countries (OPEC), which together with some non-affiliated producers like Russia, known as OPEC+, agreed late last year to cut output by 1.2 million barrels per day (bpd) to prop up prices. And the group has indicated it will continue to withhold supply despite pressure from Trump this week to stop artificially tightening markets. "Crude oil futures bounced as OPEC members remained firm on planned production cuts despite heightened political pressure from US President Trump early this week," said Benjamin Lu of Singapore-based brokerage Phillip Futures. Trump tweeted on Monday that oil prices were getting too high for the global economy, asking OPEC to relax its supply cuts. Despite the OPEC-led curbs, oil remains in ample supply as US crude production has risen by more than 2 million bpd over the past year, to a record 12 million bpd, and because demand growth is low due to a global economic slowdown and improving energy efficiency across industries. "The OPEC+ production cuts have ... so far failed to create the tightness needed to support a continued rally," said Ole Hansen, head of the commodity strategy at Denmark's Saxo Bank.

Oil prices rise as OPEC resists Trump pressure to ease supply cuts

Russia should not unleash an oil price war against the United States but rather stick with output cuts even at the cost of losing market share in the medium term, one of the main Russian architects of a production pact with OPEC said.

Since 2017, Russia and OPEC have cut oil production jointly for the first time in an effort to boost the price of crude. Following their supply pact, oil has traded between roughly $60 and $85 per barrel, from below $30 before the deal took effect.

"For US shale production to go down, you need oil prices at $40 per barrel and below. That is not healthy for the Russian economy," Kirill Dmitriev, head of the state-backed Russian Direct Investment Fund, said on Wednesday.

"We should not take competitive action to destroy US shale production," said Dmitriev, speaking at the World Economic Forum in Davos, Switzerland.

Three years ago in Davos, Dmitriev became the first Russian official to mention publicly the possibility of a supply pact with the Organization of the Petroleum Exporting Countries. At that time, oil prices had collapsed after OPEC kingpin Saudi Arabia raised output to hurt higher-cost U.S. producers.

The rise in prices thanks to output cuts has brought roughly an additional $110 billion in revenues to Russia, Dmitriev said.

However, higher oil prices have also helped the United States, which is not participating in output cuts. The country's production has rocketed, overtaking that of Russia and Saudi Arabia and making it the world’s largest oil liquids producer.

US production is expected to reach new highs this year. Russian President Vladimir Putin will visit Saudi Arabia later in 2019 to strengthen cooperation further, Dmitriev said.

Azerbaijan, one of the largest former Soviet oil producers and a participant in the production deal with OPEC, believes the pact should be extended to the end of this year, President Ilham Aliyev said this week.

Such a move should keep oil prices in the $60 to $70 range, Aliyev said.

Russia should not unleash an oil price war against the United States but rather stick with output cuts even at the cost of losing market share in the medium term, one of the main Russian architects of a production pact with OPEC said.

Russia should not unleash an oil price war against the United States but rather stick with output cuts even at the cost of losing market share in the medium term, one of the main Russian architects of a production pact with OPEC said. Since 2017, Russia and OPEC have cut oil production jointly for the first time in an effort to boost the price of crude. Following their supply pact, oil has traded between roughly $60 and $85 per barrel, from below $30 before the deal took effect. "For US shale production to go down, you need oil prices at $40 per barrel and below. That is not healthy for the Russian economy," Kirill Dmitriev, head of the state-backed Russian Direct Investment Fund, said on Wednesday. "We should not take competitive action to destroy US shale production," said Dmitriev, speaking at the World Economic Forum in Davos, Switzerland. Three years ago in Davos, Dmitriev became the first Russian official to mention publicly the possibility of a supply pact with the Organization of the Petroleum Exporting Countries. At that time, oil prices had collapsed after OPEC kingpin Saudi Arabia raised output to hurt higher-cost U.S. producers. The rise in prices thanks to output cuts has brought roughly an additional $110 billion in revenues to Russia, Dmitriev said. However, higher oil prices have also helped the United States, which is not participating in output cuts. The country's production has rocketed, overtaking that of Russia and Saudi Arabia and making it the world’s largest oil liquids producer. US production is expected to reach new highs this year. Russian President Vladimir Putin will visit Saudi Arabia later in 2019 to strengthen cooperation further, Dmitriev said. Azerbaijan, one of the largest former Soviet oil producers and a participant in the production deal with OPEC, believes the pact should be extended to the end of this year, President Ilham Aliyev said this week. Such a move should keep oil prices in the $60 to $70 range, Aliyev said.

Russia says oil price war with US would be too costly

OPEC and its Russia-led allies agreed on Friday to slash <a href="http://www.wionews.com/world/iranian-petroleum-minister-says-us-should-stop-interfering-in-opec-affairs-182193">oil production by more than the</a> market had expected despite pressure from US&nbsp;President Donald Trump to reduce the price of crude.

The producer club will curb output by 0.8 million barrels per day from January while non-OPEC allies contribute an additional 0.4 million bpd of cuts, Iraqi oil minister Thamer Ghadhban said after OPEC concluded two days of talks in Vienna.

Oil prices jumped about 5 per cent to more than $63 a barrel by 1500 GMT as the combined cut of 1.2 million bpd was larger than the minimum 1 million bpd that the market had expected.

Saudi Arabia, de facto leader of the Organization of the Petroleum Exporting Countries, has faced demands from Trump to help the global economy by refraining from cutting supplies.

An output reduction also would provide support to Iran by increasing the price of oil amid attempts by Washington to squeeze the economy of OPEC's third-largest producer.

"We will never address geopolitical issues at OPEC," United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui told a news conference.

Russian energy minister Alexander Novak praised the ability of his Saudi counterpart Khalid al-Falih "to find a solution in the most difficult situation", indicating Russia was on board.

The OPEC deal had hung in the balance for two days - first on fears that Russia would cut too little, and later on concerns that Iran, whose crude exports have been depleted by US&nbsp;sanctions, would receive no exemption and block the agreement.

But after hours of talks, Iran gave OPEC the green light and Russia indicated it was ready to cut more.

A meeting of OPEC and non-OPEC producers quickly approved the deal, according to two OPEC sources.

The cut will last for six months from January, Ghadhban said, and take October as the baseline. OPEC and Russian output was lower in October than in November. However, OPEC might not disclose individual output quotas, sources said.

"The OPEC+ cut is fuzzy on details and will likely result in less reduction than the headline figure of 1.2 million bpd," said Bob McNally, president of US-based Rapidan Energy Group.

"President Trump will not be happy to see today’s headlines, but how strongly he reacts depends mainly on whether crude prices rise strongly as a result in coming days and weeks."

Washington added fuel to the fire when US&nbsp;special representative for Iran Brian Hook met Falih in Vienna this week, in an unprecedented development ahead of an OPEC meeting.

Saudi Arabia first denied the Hook-Falih discussion took place but later confirmed it.

"U.S. political pressure is clearly a dominant factor at this OPEC meeting, limiting the scope of Saudi actions to rebalance the market," said Gary Ross, chief executive of Black Gold Investors and a veteran OPEC watcher.

The price of crude has fallen almost a third since October as Saudi Arabia, Russia and the United Arab Emirates raised output to offset lower exports from Iran.

The price decline prompted OPEC and Russia to start discussing an output cut, but Russia long resisted any deep reduction.

Novak met Russian President Vladimir Putin in St Petersburg on Thursday and returned to the Austrian capital on Friday.

A Russian energy ministry source said Moscow was ready to contribute a cut of around 200,000 bpd - more than the initially suggested figure of 150,000 bpd. An OPEC source later said Russia had agreed to cut by 230,000 bpd.

Russia, Saudi Arabia and the United States have been vying for the position of top crude producer in recent years. The United States is not part of any output-limiting initiative due to its anti-trust legislation and fragmented oil industry.

On Thursday, US&nbsp;government figures showed the country had become a net exporter of crude oil and refined products for the first time on record, underscoring how the surge in production has altered the supply equation in world markets.

OPEC and its Russia-led allies agreed on Friday to slash oil production by more than the market had expected despite pressure from US President Donald Trump to reduce the price of crude.

OPEC and its Russia-led allies agreed on Friday to slash oil production by more than the market had expected despite pressure from US President Donald Trump to reduce the price of crude. The producer club will curb output by 0.8 million barrels per day from January while non-OPEC allies contribute an additional 0.4 million bpd of cuts, Iraqi oil minister Thamer Ghadhban said after OPEC concluded two days of talks in Vienna. Oil prices jumped about 5 per cent to more than $63 a barrel by 1500 GMT as the combined cut of 1.2 million bpd was larger than the minimum 1 million bpd that the market had expected. Saudi Arabia, de facto leader of the Organization of the Petroleum Exporting Countries, has faced demands from Trump to help the global economy by refraining from cutting supplies. An output reduction also would provide support to Iran by increasing the price of oil amid attempts by Washington to squeeze the economy of OPEC's third-largest producer. "We will never address geopolitical issues at OPEC," United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui told a news conference. Russian energy minister Alexander Novak praised the ability of his Saudi counterpart Khalid al-Falih "to find a solution in the most difficult situation", indicating Russia was on board. The OPEC deal had hung in the balance for two days - first on fears that Russia would cut too little, and later on concerns that Iran, whose crude exports have been depleted by US sanctions, would receive no exemption and block the agreement. But after hours of talks, Iran gave OPEC the green light and Russia indicated it was ready to cut more. A meeting of OPEC and non-OPEC producers quickly approved the deal, according to two OPEC sources. The cut will last for six months from January, Ghadhban said, and take October as the baseline. OPEC and Russian output was lower in October than in November. However, OPEC might not disclose individual output quotas, sources said. "The OPEC+ cut is fuzzy on details and will likely result in less reduction than the headline figure of 1.2 million bpd," said Bob McNally, president of US-based Rapidan Energy Group. "President Trump will not be happy to see today’s headlines, but how strongly he reacts depends mainly on whether crude prices rise strongly as a result in coming days and weeks." Washington added fuel to the fire when US special representative for Iran Brian Hook met Falih in Vienna this week, in an unprecedented development ahead of an OPEC meeting. Saudi Arabia first denied the Hook-Falih discussion took place but later confirmed it. "U.S. political pressure is clearly a dominant factor at this OPEC meeting, limiting the scope of Saudi actions to rebalance the market," said Gary Ross, chief executive of Black Gold Investors and a veteran OPEC watcher. The price of crude has fallen almost a third since October as Saudi Arabia, Russia and the United Arab Emirates raised output to offset lower exports from Iran. The price decline prompted OPEC and Russia to start discussing an output cut, but Russia long resisted any deep reduction. Novak met Russian President Vladimir Putin in St Petersburg on Thursday and returned to the Austrian capital on Friday. A Russian energy ministry source said Moscow was ready to contribute a cut of around 200,000 bpd - more than the initially suggested figure of 150,000 bpd. An OPEC source later said Russia had agreed to cut by 230,000 bpd. Russia, Saudi Arabia and the United States have been vying for the position of top crude producer in recent years. The United States is not part of any output-limiting initiative due to its anti-trust legislation and fragmented oil industry. On Thursday, US government figures showed the country had become a net exporter of crude oil and refined products for the first time on record, underscoring how the surge in production has altered the supply equation in world markets.

OPEC, Russia agree to cut oil production after Vienna talks; prices jump

Oil Minister&nbsp;Dharmendra Pradhan&nbsp;said on Friday he was hopeful that Organization of the Petroleum Exporting Countries (OPEC) would keep in mind consumers'&nbsp;interests before deciding to<a href="http://www.wionews.com/world/opec-and-partners-face-steep-challenge-to-reach-oil-cut-deal-182079"> cut crude oil production</a>.

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<a href="http://www.wionews.com/world/iranian-petroleum-minister-says-us-should-stop-interfering-in-opec-affairs-182193">OPEC</a> tentatively agreed to an oil output cut on Thursday but was waiting for a commitment from non-OPEC producer Russia before deciding on the exact volumes for a production reduction aimed at propping up oil prices.

Oil Minister Dharmendra Pradhan said on Friday he was hopeful that Organization of the Petroleum Exporting Countries (OPEC) would keep in mind consumers' interests before deciding to cut crude oil production.

Oil Minister Dharmendra Pradhan said on Friday he was hopeful that Organization of the Petroleum Exporting Countries (OPEC) would keep in mind consumers' interests before deciding to cut crude oil production. Union Petroleum & Gas Minister Dharmendra Pradhan on OPEC Summit: Through the statements of the Saudi Oil Minister yesterday, it can be inferred that they will not take any decision overlooking the favours of the consuming countries. pic.twitter.com/QdmRNfamkT — ANI (@ANI) December 7, 2018 × OPEC tentatively agreed to an oil output cut on Thursday but was waiting for a commitment from non-OPEC producer Russia before deciding on the exact volumes for a production reduction aimed at propping up oil prices.

Hope OPEC will remember consumers when cutting output: Dharmendra Pradhan

Iran's Petroleum Minister Bijan Namdar Zanganeh said on Thursday that the US&nbsp;should stop interfering in affairs of the Organization of the Petroleum Exporting Countries (OPEC) while attending an<a href="http://www.wionews.com/world/opec-and-partners-face-steep-challenge-to-reach-oil-cut-deal-182079"> OPEC meeting</a>.

There are analyses saying that close ties with the US&nbsp;is one reason for Qatar to quit the OPEC. On Monday, <a href="http://www.wionews.com/world/qatar-to-withdraw-from-opec-as-of-jauary-2019-minister-181096">Qatar announced to withdraw from the OPEC </a>since January 2019.

Saad Sherida Al-Kaabi, Minister of Energy and Industry of Qatar, said the country decided to withdraw because it wanted to focus on gas.

"We withdrew because strategically we want to focus on gas. We are the biggest energy exporter in the world and we want to focus on gas. Oil for us is a very small production. We produce 600,000 barrels a day approximately, and we don't see there's a value for us to stay in OPEC further, because we are a small player and it doesn't fit our strategy," he said.

Iran's petroleum minister said attempts of the US&nbsp;to change OPEC decisions are unacceptable to major members.

"Brian Hook, I don't know what he is doing in Vienna if the United States is here to submit his proposal to join OPEC, putting pressure on some OPEC members. How to decide? It's very bad for OPEC, it's unacceptable for OPEC and major members of OPEC," said Zangeneh.

<a href="http://www.wionews.com/world/hopefully-opec-will-be-keeping-oil-flows-as-is-world-does-not-need-higher-oil-prices-trump-181746">US&nbsp;President Donald Trump</a> pulled the United States out of the landmark 2015 Iranian nuclear deal in May and re-imposed comprehensive sanctions on Tehran, including the country's oil exports and financial sectors.

Zanganeh said Iran will not be a part of any agreement by the OPEC over quota reduction as long as it is the target of U.S. sanctions.

"No doubt that they're going to create difficulty for our revenue, for our export. Resisting is clear and it's not a simple issue for us to accept it and to go along with it. We are resisting, we are trying to preserve the level of our production, especially the level of our export," said Zanganeh.

Oil prices extended much losses on Thursday, as <a href="http://www.wionews.com/world/opec-meets-as-trump-calls-for-oil-taps-to-be-kept-on-181837">OPEC wrapped up a much-anticipated meeting</a> with no decision on the level of potential output cut.

The Saudi-led oil cartel and its allies held a meeting at its headquarters in Vienna, Austria on Thursday to wrestle with the falling oil prices, amid broad market expectations that it would reach an oil reduction deal.

Iran's Petroleum Minister Bijan Namdar Zanganeh said on Thursday that the US should stop interfering in affairs of the Organization of the Petroleum Exporting Countries (OPEC) while attending an OPEC meeting.

Iran's Petroleum Minister Bijan Namdar Zanganeh said on Thursday that the US should stop interfering in affairs of the Organization of the Petroleum Exporting Countries (OPEC) while attending an OPEC meeting. There are analyses saying that close ties with the US is one reason for Qatar to quit the OPEC. On Monday, Qatar announced to withdraw from the OPEC since January 2019. Saad Sherida Al-Kaabi, Minister of Energy and Industry of Qatar, said the country decided to withdraw because it wanted to focus on gas. "We withdrew because strategically we want to focus on gas. We are the biggest energy exporter in the world and we want to focus on gas. Oil for us is a very small production. We produce 600,000 barrels a day approximately, and we don't see there's a value for us to stay in OPEC further, because we are a small player and it doesn't fit our strategy," he said. Iran's petroleum minister said attempts of the US to change OPEC decisions are unacceptable to major members. "Brian Hook, I don't know what he is doing in Vienna if the United States is here to submit his proposal to join OPEC, putting pressure on some OPEC members. How to decide? It's very bad for OPEC, it's unacceptable for OPEC and major members of OPEC," said Zangeneh. US President Donald Trump pulled the United States out of the landmark 2015 Iranian nuclear deal in May and re-imposed comprehensive sanctions on Tehran, including the country's oil exports and financial sectors. Zanganeh said Iran will not be a part of any agreement by the OPEC over quota reduction as long as it is the target of U.S. sanctions. "No doubt that they're going to create difficulty for our revenue, for our export. Resisting is clear and it's not a simple issue for us to accept it and to go along with it. We are resisting, we are trying to preserve the level of our production, especially the level of our export," said Zanganeh. Oil prices extended much losses on Thursday, as OPEC wrapped up a much-anticipated meeting with no decision on the level of potential output cut. The Saudi-led oil cartel and its allies held a meeting at its headquarters in Vienna, Austria on Thursday to wrestle with the falling oil prices, amid broad market expectations that it would reach an oil reduction deal.

US should stop interfering in OPEC affairs: Iran petroleum minister Zanganeh

Even as the OPEC or Organisation of the <a href="http://www.wionews.com/world/us-not-in-a-position-to-tell-us-what-to-do-says-saudi-arabia-on-oil-price-cut-181971">Petroleum Exporting Countries meet happens</a> in Vienna, Saudi Arabia's energy minister Khalid al-Falih said India's prime minister Narendra Modi was&nbsp;"vocal" about the increase in oil prices and raised it with Riyadh many times.&nbsp;

Speaking to reporters ahead of the OPEC meeting, Khalid al-Falih said: "We also take views of Prime Minister Modi, who is equally vocal. We just met him in Buenos Aires. Privately he made those points. He does care for Indian consumers."

He also disclosed that PM Modi had met him three&nbsp;times in India at "various energy events in India. And he was very vocal".

The Saudi energy minister assured the nervous energy market that the Kingdom will ensure&nbsp;affordable oil prices, adding, "consumer in the&nbsp;US, just like a consumer in France, just like a consumer in India, wants affordable energy".

Unstable oil prices has been a key issue which&nbsp;India has been raising during its meeting with oil producing countries especially Saudi Arabia. It was one of the main&nbsp;issues India raised at the recently concluded 13th G20 Summit in Argentina.&nbsp;

Meanwhile, OPEC has agreed to cut prices but has been waiting for non-member Russia's nod to decide on the volume of the intended cut.

The comments by Saudi energy minister comes a&nbsp;week after PM Modi met Saudi Arabia's crown prince&nbsp;Mohammad Bin Salman on the sidelines of the G20 summit.

During the bilateral meeting, according to the foreign secretary Vijay Gokhale, "the PM, in particular, stressed upon the importance of having stable energy prices".

India views the Kingdom of Saudi Arabia as a "valuable partner"&nbsp;and the relationship has expanded beyond issues related to the Indian community to&nbsp;economy, energy and security.

PM Modi visited Saudi Arabia in 2016 during which King Salman honoured him with ‘Sash of King Abdulaziz’, the highest civilian decoration awarded by the Kingdom.

Even as the OPEC or Organisation of the Petroleum Exporting Countries meet happens in Vienna, Saudi Arabia's energy minister Khalid al-Falih said India's prime minister Narendra Modi was "vocal" about the increase in oil prices and raised it with Riyadh many times.

Even as the OPEC or Organisation of the Petroleum Exporting Countries meet happens in Vienna, Saudi Arabia's energy minister Khalid al-Falih said India's prime minister Narendra Modi was "vocal" about the increase in oil prices and raised it with Riyadh many times. Speaking to reporters ahead of the OPEC meeting, Khalid al-Falih said: "We also take views of Prime Minister Modi, who is equally vocal. We just met him in Buenos Aires. Privately he made those points. He does care for Indian consumers." He also disclosed that PM Modi had met him three times in India at "various energy events in India. And he was very vocal". The Saudi energy minister assured the nervous energy market that the Kingdom will ensure affordable oil prices, adding, "consumer in the US, just like a consumer in France, just like a consumer in India, wants affordable energy". Unstable oil prices has been a key issue which India has been raising during its meeting with oil producing countries especially Saudi Arabia. It was one of the main issues India raised at the recently concluded 13th G20 Summit in Argentina. Meanwhile, OPEC has agreed to cut prices but has been waiting for non-member Russia's nod to decide on the volume of the intended cut. The comments by Saudi energy minister comes a week after PM Modi met Saudi Arabia's crown prince Mohammad Bin Salman on the sidelines of the G20 summit. During the bilateral meeting, according to the foreign secretary Vijay Gokhale, "the PM, in particular, stressed upon the importance of having stable energy prices". India views the Kingdom of Saudi Arabia as a "valuable partner" and the relationship has expanded beyond issues related to the Indian community to economy, energy and security. PM Modi visited Saudi Arabia in 2016 during which King Salman honoured him with ‘Sash of King Abdulaziz’, the highest civilian decoration awarded by the Kingdom.

We also take views of PM Modi, he cares about Indian consumers: Saudi energy minister on oil price cut

<a href="http://www.wionews.com/world/what-happens-if-the-us-terminates-nafta-181728">US President Donald Trump </a>on Wednesday urged OPEC members not to slash production at their upcoming meeting, saying global oil prices should remain low.

Trump's comment came as members of the Organization of Petroleum Exporting Countries and other oil-producing nations prepared to meet Thursday and Friday in Vienna to discuss lowering their output.

"Hopefully OPEC will be keeping oil flows as is, not restricted. The World does not want to see, or need, higher oil prices!" Trump said on Twitter.

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Hopefully OPEC will be keeping oil flows as is, not restricted. The World does not want to see, or need, higher oil prices!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1070328136150200320?ref_src=twsrc%5Etfw">December 5, 2018</a></blockquote>
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If the 20 or so OPEC members and other nations at the Vienna talks -- which account for more than half of the world's oil -- continue to pump at current record levels, they risk seeing prices continue to tumble.&nbsp;

Prices have already plunged more than 30 per cent over the past two months and a barrel of Brent crude, the European benchmark, currently stands at around $60.

But if oil producers close the taps, they risk choking off the global economy, which needs affordable oil to keep running.&nbsp;

Trump has repeatedly accused the oil cartel of keeping prices artificially high.

That has put OPEC kingpin Saudi Arabia in a delicate position -- Riyadh is keen not to incur Trump's wrath as relations between the two countries become increasingly complicated in the wake of the murder of opposition journalist Jamal Khashoggi.

US President Donald Trump on Wednesday urged OPEC members not to slash production at their upcoming meeting, saying global oil prices should remain low. Trump's comment came as members of the Organization of Petroleum Exporting Countries and other oil-producing nations prepared to meet Thursday and Friday in Vienna to discuss lowering their output.

US President Donald Trump on Wednesday urged OPEC members not to slash production at their upcoming meeting, saying global oil prices should remain low. Trump's comment came as members of the Organization of Petroleum Exporting Countries and other oil-producing nations prepared to meet Thursday and Friday in Vienna to discuss lowering their output. "Hopefully OPEC will be keeping oil flows as is, not restricted. The World does not want to see, or need, higher oil prices!" Trump said on Twitter. Hopefully OPEC will be keeping oil flows as is, not restricted. The World does not want to see, or need, higher oil prices! — Donald J. Trump (@realDonaldTrump) December 5, 2018 × If the 20 or so OPEC members and other nations at the Vienna talks -- which account for more than half of the world's oil -- continue to pump at current record levels, they risk seeing prices continue to tumble. Prices have already plunged more than 30 per cent over the past two months and a barrel of Brent crude, the European benchmark, currently stands at around $60. But if oil producers close the taps, they risk choking off the global economy, which needs affordable oil to keep running. Trump has repeatedly accused the oil cartel of keeping prices artificially high. That has put OPEC kingpin Saudi Arabia in a delicate position -- Riyadh is keen not to incur Trump's wrath as relations between the two countries become increasingly complicated in the wake of the murder of opposition journalist Jamal Khashoggi.

World does not need higher oil prices: Trump to OPEC

&nbsp;Oil prices steadied on Friday as expectations that OPEC and Russia would agree some form of production cut next week balanced pressure from swelling inventories.

Both international oil benchmarks, North Sea Brent and US&nbsp;light crude, have had their weakest month for more than 10 years in November, losing 28 per cent and 30 per cent respectively as global supply has outstripped demand.

Brent was up 25 cents at $59.76 a barrel by 0910 GMT. US&nbsp;crude was unchanged at $51.45. Both contracts are up about 1 per cent this week, the first weekly gains in almost two months.

Surging oil production in the United States, Russia and by members of the Middle East-dominated Organization of the Petroleum Exporting Countries has helped fill global inventories and create a glut in some markets.

A slowdown in oil demand growth is compounding the emerging oversupply.

"Near-term oversupply has gutted Brent prices," said Jason Gammel, an analyst at US&nbsp;investment bank Jefferies, adding that there was "an increasing urgency to move crude into storage".

This move is visible in the Brent forward price curve, which now has prices for future delivery above those for immediate dispatch, a structure known as "contango", which can make it attractive to put oil into storage for later sale.

To rein in the glut, OPEC and its main partner Russia are discussing supply cuts and are due to meet in Vienna on Dec. 6 and 7 to agree production strategy.

"The next OPEC meeting is going to prove a pivotal moment for the direction of oil prices in 2019," BNP Paribas strategist Harry Tchilinguirian told Reuters Global Oil Forum.

"A decision will have to be made against a background of strong US&nbsp;shale oil supply growth, and for now, weaker expectations on global oil demand growth."

Before the OPEC meeting, the world`s top three producers - the United States, Russia and Saudi Arabia - will be part of a meeting this weekend of the Group of 20 industrialised nations in Buenos Aires, Argentina.

Oil inventories are rising fast in the United States, where commercial crude stocks rose by 3.6 million barrels in the week to November&nbsp;23 to 450.49 million barrels, according to the Energy Information Administration (EIA).&nbsp;US&nbsp;crude production is at a record high of 11.7 million barrels per day (bpd).

Crude reserves increased 6.4 billion barrels, or 19.5 per cent, to 39.2 billion barrels at year-end 2017, marginally higher than the previous record of 39 billion barrels set in 1970, the EIA said. 
&nbsp;

Oil prices steadied on Friday as expectations that OPEC and Russia would agree some form of production cut next week balanced pressure from swelling inventories.

Oil prices steadied on Friday as expectations that OPEC and Russia would agree some form of production cut next week balanced pressure from swelling inventories. Both international oil benchmarks, North Sea Brent and US light crude, have had their weakest month for more than 10 years in November, losing 28 per cent and 30 per cent respectively as global supply has outstripped demand. Brent was up 25 cents at $59.76 a barrel by 0910 GMT. US crude was unchanged at $51.45. Both contracts are up about 1 per cent this week, the first weekly gains in almost two months. Surging oil production in the United States, Russia and by members of the Middle East-dominated Organization of the Petroleum Exporting Countries has helped fill global inventories and create a glut in some markets. A slowdown in oil demand growth is compounding the emerging oversupply. "Near-term oversupply has gutted Brent prices," said Jason Gammel, an analyst at US investment bank Jefferies, adding that there was "an increasing urgency to move crude into storage". This move is visible in the Brent forward price curve, which now has prices for future delivery above those for immediate dispatch, a structure known as "contango", which can make it attractive to put oil into storage for later sale. To rein in the glut, OPEC and its main partner Russia are discussing supply cuts and are due to meet in Vienna on Dec. 6 and 7 to agree production strategy. "The next OPEC meeting is going to prove a pivotal moment for the direction of oil prices in 2019," BNP Paribas strategist Harry Tchilinguirian told Reuters Global Oil Forum. "A decision will have to be made against a background of strong US shale oil supply growth, and for now, weaker expectations on global oil demand growth." Before the OPEC meeting, the world`s top three producers - the United States, Russia and Saudi Arabia - will be part of a meeting this weekend of the Group of 20 industrialised nations in Buenos Aires, Argentina. Oil inventories are rising fast in the United States, where commercial crude stocks rose by 3.6 million barrels in the week to November 23 to 450.49 million barrels, according to the Energy Information Administration (EIA). US crude production is at a record high of 11.7 million barrels per day (bpd). Crude reserves increased 6.4 billion barrels, or 19.5 per cent, to 39.2 billion barrels at year-end 2017, marginally higher than the previous record of 39 billion barrels set in 1970, the EIA said.

Oil steady as expected OPEC cuts balance high inventory

Oil prices slipped on Monday as further increases in US drilling activity undercut an OPEC-led push to tighten supply.

Trading was subdued due to public holidays in China, the United States and Britain, but concerns lingered over whether OPEC action would be enough to stem the tide of oversupply.

Brent crude futures were trading down 15 cents at $51.98 per barrel at 11:15 GMT. The contract ended the previous week down nearly 3 per cent.

US West Texas Intermediate (WTI) crude futures were also down 17 cents at $49.63 per barrel.

The Organization of the Petroleum Exporting Countries and some non-OPEC producers pledged last week to extend production cuts of around 1.8 million barrels per day (bpd) until March 2018.

An initial agreement, in place since January, would have expired in June this year.

Commerzbank analyst Carsten Fritsch called Monday&#39;s price moves little more than &quot;intraday noise&quot; but said hints of deeper cuts or a longer extension from OPEC left the market deflated after the final decision.

&quot;They increased expectations to such an extent that nine months was a disappointment,&quot; Fritsch said.

High compliance with the cuts so far was unlikely to last, he said, adding to worries about whether the pledge would dent physical oil stockpiles that remain near record levels.

&quot;The pain for OPEC will increase to such a point that 100 per cent compliance is unrealistic,&quot; Fritsch said.

Despite ongoing cuts, oil prices have not risen much beyond $50 per barrel.

OPEC&#39;s success in drawing down inventories may hinge on output in the United States, which is not participating in the cuts. US production has soared 10 per cent since mid-2016 to more than 9.3 million bpd, close to top producer levels Russia and Saudi Arabia.

US drillers have added rigs for 19 straight weeks, bringing the total 722, the highest number since April 2015 and the longest run of additions on record, according to energy services firm Baker Hughes Inc.

Almost all of the recent US output increases have been onshore, from so-called shale oil fields.

Even if the rig count did not rise further, Goldman Sachs said it estimated US output would increase by 785,000 bpd between the fourth quarter of 2016 and the fourth quarter of 2017 across the Permian, Eagle Ford, Bakken and Niobrara shale plays.

Analysts say that reducing bloated global stocks will be key to reining in oversupply.

&quot;It&#39;s going to be all about inventories and whether they fall as much as OPEC thinks,&quot; said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

(Reuters)

The OPEC and some non-OPEC producers pledged last week to extend production cuts of around 1.8 million barrels per day (bpd) until March 2018

Oil prices slipped on Monday as further increases in US drilling activity undercut an OPEC-led push to tighten supply. Trading was subdued due to public holidays in China, the United States and Britain, but concerns lingered over whether OPEC action would be enough to stem the tide of oversupply. Brent crude futures were trading down 15 cents at $51.98 per barrel at 11:15 GMT. The contract ended the previous week down nearly 3 per cent. US West Texas Intermediate (WTI) crude futures were also down 17 cents at $49.63 per barrel. The Organization of the Petroleum Exporting Countries and some non-OPEC producers pledged last week to extend production cuts of around 1.8 million barrels per day (bpd) until March 2018. An initial agreement, in place since January, would have expired in June this year. Commerzbank analyst Carsten Fritsch called Monday's price moves little more than "intraday noise" but said hints of deeper cuts or a longer extension from OPEC left the market deflated after the final decision. "They increased expectations to such an extent that nine months was a disappointment," Fritsch said. High compliance with the cuts so far was unlikely to last, he said, adding to worries about whether the pledge would dent physical oil stockpiles that remain near record levels. "The pain for OPEC will increase to such a point that 100 per cent compliance is unrealistic," Fritsch said. Despite ongoing cuts, oil prices have not risen much beyond $50 per barrel. OPEC's success in drawing down inventories may hinge on output in the United States, which is not participating in the cuts. US production has soared 10 per cent since mid-2016 to more than 9.3 million bpd, close to top producer levels Russia and Saudi Arabia. US drillers have added rigs for 19 straight weeks, bringing the total 722, the highest number since April 2015 and the longest run of additions on record, according to energy services firm Baker Hughes Inc. Almost all of the recent US output increases have been onshore, from so-called shale oil fields. Even if the rig count did not rise further, Goldman Sachs said it estimated US output would increase by 785,000 bpd between the fourth quarter of 2016 and the fourth quarter of 2017 across the Permian, Eagle Ford, Bakken and Niobrara shale plays. Analysts say that reducing bloated global stocks will be key to reining in oversupply. "It's going to be all about inventories and whether they fall as much as OPEC thinks," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. (Reuters)

Oil prices slip as US drilling undermines OPEC-led production cut