…as OPEC, others continue supply cut
The price of crude oil has risen to as high as $73.72 per barrel in the international market as members and non-members of the Organisation of Petroleum Exporting Countries, OPEC continue to cut supplies.
The cut is targeted at removing excess oil from the market, thereby causing price to stabilise in the best interest of producers and consumers.
A survey of the market by PetrolGas Report showed that the price of Brent and WTI stood at $73.72 and $68.30 per barrel respectively.
The price of OPEC basket of 14 crudes stood at $69.39 a barrel on Wednesday, compared with $68.36 the previous day, according to OPEC Secretariat calculations.
The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
However, the market is expected to record increased stability in the coming weeks as OPEC and others continue to mobilise support of other nations.
HE Mohammad Sanusi Barkindo, Secretary General, while delivering his keynote at the 5th Kuwait Oil & Gas Show had stated that: ‘’We truly believe we need to work towards a more integrated industry, at all levels. We need to continually break down barriers; we cannot work in silos. This is vital in an increasingly interdependent and complex world.
‘’This is readily apparent in the historic ‘Declaration of Cooperation’ between 24 OPEC and non-OPEC producers. This integrated approach to tackle the oil market downturn and return balance and stability to the market is unparalleled in the history of the oil industry.
‘’Moreover, the past 15 months or so has shown it to be a great success, driven by the unprecedented conformity levels voluntary production adjustments. In 2017, it averaged 109%, and for the most recently reported months, February saw a level of 138% and in March the figure is expected to be even higher. In looking at the current oil market situation, there is no doubt that the industry is starting to feel a much warmer glow. The overall market fundamentals have not been this strong since the onset of the current cycle.
‘’In 2017, the global economic recovery gathered momentum. This positive trend is expected to be maintained in 2018 with an extremely healthy growth forecast of 3.8%. Correspondingly, global oil demand growth has been robust and strengthening. It is expected to grow by 1.63 mb/d in 2018, following a similar trend in 2017.
‘’And the OECD stocks overhang has fallen from around 400 million barrels (mb) against the five-year average in February 2016, to a level below 40 mb, a trend that will continue in the coming months. We have not only turned a historic page, but a new chapter is being authored in the history of the industry by OPEC and its non-OPEC partners, who continue to demonstrate the power of cooperation and dialogue to restore stability and growth in the global oil market, and the knock-on positives of this for the global economy.’’