US Briefly Overtakes Saudi Arabia As Top Oil Exporter

Chart showing Persian Gulf

Chart showing Persian Gulf

Iraq and Nigeria have pledged further cuts. "Prince Abdulaziz made clear that "no radical" change in the Saudi oil policy is forthcoming", said Tamas Varga of oil brokerage PVM.

The committee went on to state that the alliance attained a compliance rate of 136 percent in August, 20 percent less than the 116 percent recorded by the International Energy Agency for the same period.

Brent for November settlement gained 35 cents, or 0.6 percent, to $61.16 a barrel on the ICE Futures Europe Exchange.

Ghadhban downplayed any bearish impact, saying that local Iranian consumption of crude remains high and that any return of Iranian barrels to the market would be gradual, because of Iran's deteriorating oil infrastructure, even with an estimated 50 million to 60 million barrels in floating storage.

"Oil prices are down on concern that the USA administration could ease its stance versus Iran, which could see disrupted Iranian oil barrels returning to the market if United States sanctions against Iran get eased".

"Our oil supply-demand outlook for 2020 calls for additional OPEC production cuts to keep inventories near normal", Goldman analysts wrote in a note.

Bringing more oil into the market will also undermine the OPEC-led attempt to tighten supply and stabilize prices by reducing output from its members and major ally producers.

That deal helped push prices back up, becoming what Prince Abdulaziz this week described as an arrangement "til death do us part".

USA commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 6.9 million barrels from the previous week. The IEA maintained its 2019 forecast of 1.1 million barrels a day in consumption globally compared to 2018.

It's "a reminder to the producers that competition for market share is getting tougher", the IEA said. -China trade war, the entity announced today.

That was a sentiment echoed by analysts. The group is striving to prevent a glut amid soaring US production and the slowing global economy.

It indicated the market would be in surplus.

The price surge on Thursday came after both of the central worldwide benchmarks dropped on the previous day following a report that President Trump had contemplated easing sanctions on Iran, a step that would probably boost global crude supply. "If the issue of addressing them requires certain measures, all these certain measures will be reviewed". But they don't want to say that openly. "These measures damage our economy".

But a cut, while it could boost prices, could hurt the ones who need the money most.

USA oil gained more than 2 per cent on Monday, while Brent finished the day 1.7 per cent higher as the market reacted to the appointment by Saudi Arabia's king of his son, Prince Abdulaziz bin Salman, as energy minister on Sunday.

The next meeting of the JMMC comes up on the 4th December 2019 at the OPEC Secretariat in Vienna, Austria.