Saudi Arabia to keep over complying with OPEC+oil cuts

Saudi Arabia to keep over complying with OPEC+oil cuts

Also giving a floor to prices, the U.S. Energy Information Administration said on Wednesday that U.S. crude oil stockpiles fell last week to their lowest in almost a year, as refineries raised output and imports fell. Furthermore, crude oil traders are also showing little response to optimistic developments over U.S.

OPEC downgraded its estimate of world economic growth in 2020 from 3.2 to 3.1 percent, which led to lower expectation for global oil demand.

Growing speculation that US sanctions against Iran may be dropped, as well as proof that OPEC is slowly and surely ceding market share to the United States, sent oil prices plummeting on Wednesday, despite another big weekly draw number for USA crude.

"While the relentless stock builds we have seen since early 2018 have halted, this is temporary".

"The challenge of market management remains a daunting one well into 2020".

Iraq's and Nigeria's oil ministers pledged on Thursday to reduce oil output to comply with their OPEC output targets. Some are caving into temptation, increasing production to generate revenues for struggling economies.

"Every country counts regardless of its size ..."

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Saudi Arabia and Russian Federation on Thursday called on OPEC members and its allies to better comply with oil production cuts. Trump argues that oil prices are too high.

"Very important that OPEC increase the flow of Oil".

"And whatever happens to the world price of oil, whatever happens to the world price of whatever, electricity, it doesn't really matter, then so be it", Dan Brouillette said. "Thank you!" Trump tweeted back in March. He followed up in April: "Spoke to Saudi Arabia and others about increasing oil flow. All are in agreement".

Demand growth in the first six months of this year came in at just 0.5 mbd and touched a low of 0.2 mbd in June, it noted.

"Nevertheless, this is expected to be outpaced by the strong growth in non-OPEC supply".

"This highlights the shared responsibility of all producing countries to support oil market stability to avoid unwanted volatility and a potential relapse into market imbalance", the report said. While that should have boosted prices, the market fell instead on worries that OPEC, which accounts for about 40% of world oil supply, could again be faced with a global glut like a few years ago.

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