Oman oil minister says majority of OPEC and its allies support cut

The bulk of Iraq’s oil is exported via its southern terminals which account for more than 95% of state revenue

The bulk of Iraq’s oil is exported via its southern terminals which account for more than 95% of state revenue

After jumping over 1% in early trade, front-month Brent and WTI Crude futures are now trading at $70.70 and $60.63 a barrel, up 0.75% from Friday's closing level.

However, market participants say the global energy market could see another period of excessive supply of crude oil as soon as next year - with oil bulls looking at Bakken anxiously.

Suheil al-Mazrouei, energy minister of the host country UAE, hinted that producers are preparing to cut output.

Saudi Arabia pumps about 10.4 million barrels of oil each day, with production decisions set at the national level and in coordination with OPEC.

The crash deeply impacted oil producers, with Saudi Arabia's fiscal deficit rising to 16% of its GDP - meaning lesser money for infrastructure, defence, and its social projects such as free medicine for citizens and so on.

Through large production cuts starting at the beginning of 2017, they managed to push up oil prices from below Dollars 30 a barrel to over USD 85 a barrel in October, strongly improving their revenues.

A majority of OPEC and allied oil exporters support a cut in the global supply of crude, Oman Oil Minister Mohammed bin Hamad al-Rumhi was cited by Reuters as saying.

During a meeting in Baghdad, Iraq and Saudi Arabia's oil ministers also discussed an electricity grid connection between the two countries to meet Iraq's power needs, he said.




November 12, 2018 West Texas Intermediate, the US benchmark oil price, had been declining for the hour before the tweet and briefly dipped lower before trading at $60.14 a barrel, down 5 cents for the day at 1:49 p.m.in NY.

When asked about the possibility of an output cut, he insisted it was "premature to talk about a specific action".

The Saudi announcement boosted Brent oil price from some $69/bbl to above $71/bbl Monday - as investors deemed a 0.5-percent cut to the total global supply as easing the concerns of overproduction.

"We have to study all the factors", he said. He said the committee were reviewing the market and would draw up a plan to deal with the prospect of higher supply in 2019. Mr Khalid told CNBC the market had "got it wrong" in terms of fears about the impact U.S. sanctions on Iran would have - but his claims cut little ice with Mr Trump, who has previously urged oil-producing countries not to cut levels of production.

He also attributed the sharp drop in prices to "microeconomic uncertainties" and signs of a build-up in crude inventories.

Dudley said the waivers had been unexpected, so the market had been readjusting.

The outlook for oil, a key source of revenue for Russian Federation and Saudi Arabia, is adding a fresh twist for a market already obsessed with Federal Reserve tightening and the U.S.

Commerzbank, Germany's second-largest lender, said Friday oil producers must act to prevent a free fall of prices.

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