Oil Price Rises To $57 …As OPEC Plans Output Cuts

Oil Rises Nearly 1

But they are also trying to get a handle on the output of Libya and Nigeria, two countries that were exempted from the deal and have collectively added about 550,000 bpd since the original deal was agreed to previous year.

In the 2017 budget, the executive set the crude oil benchmark at 2.2 million barrels per day at a price of $42.5 per barrel, before the National Assembly pushed the benchmark to $44.5 a barrel with hopes that the black gold would remain at its January rate, which was above $50.

Iraq's goal to boost production capacity to 5 million barrels a day won't affect markets and not all new output will be exported, Oil Minister Jabbar Al-Luaibi said in Baghdad.

Oil prices jumped to their highest for more than two years on Monday after major producers said output cuts were squeezing supplies.

Oil prices were trading around their highest level in over two years, amid Turkey's threat to cut crude flows from Iraq's Kurdistan region following the independence referendum.

In the meantime, price figures for heavy crude of Iran rose to 51 dollars and 60 cents indicating a 91-cent upswing as compared the earlier week. This gap has doubled in the last six weeks as U.S. crude demand has been undermined by hurricane damage to United States refineries. However, the U.S. energy industry already appears to be rebounding quickly.

The gains in oil prices are also being propelled by China, which is building up its reserves.

"We see backwardation here to stay, we see the market tightening strongly, we see oil moving out of storage quite fast". The measure is aimed at draining global stockpiles closer to a five-year average.

If the 158-year history of the oil industry has taught us anything, though, it is surely that innovation is one thing it is very good at. Furthermore, 112mb of the 170mb originate from the US. "The market is now evidently well on its way towards rebalancing". Oil exports by Opec were 25.19 million bpd in August, their lowest level since April. "In this regard, we urge participating countries to achieve 100 per cent conformity without further delay. All options are left open to ensure that every effort is made to rebalance the market for the benefit of all".

"Demand growth remains robust, with the projected 2mb/d in 2H17 on course to materialize". All factors point to headwinds ahead.

He said the NPDC was the biggest and largest gas producer in the country and was also the highest supplier of gas to the domestic market.

Russian Federation is a party to the multilateral effort and is the largest contributor among non-OPEC member states. The IEA now expects global demand to increase by 1.6 mbpd this year while Opec estimates global demand growth by 1.42 mbpd.

Intensive refining activity over the next few months as refiners try to stabilise and rebuild fuel stocks should ensure strong demand for crude.

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