With glut nearly gone, OPEC still cuts more than oil pact demands

With glut nearly gone, OPEC still cuts more than oil pact demands

"Germany has said it will protect its companies from USA sanctions, Iran has said French oil giant Total has yet to pull out of its fields and all the while it seems the Chinese are ready to fill the void created by the U.S".

Investment in the USA unconventional oil industry rose 42% year on year in 2017 to $138bn compared to a 2% rise in overall non-OPEC capital expenditure over the same period as easy access to capital and cheap debt drove to an explosion in output, buoyed by firming oil prices, OPEC said.

If US seeks to reduce Iran's oil exports, oil supply in the markets will drop by one million barrels per day (bpd), a senior strategist maintained.

Despite this, OPEC's latest report said producers were cutting more than required under the deal, while producers not party to the agreement, such as USA shale companies, were starting to face constraints on future output.

OPEC raised its global oil demand forecast for 2018 by 25,000 barrels a day, to increase by 1.65 million barrels a day and average 98.85 million barrels a day.

'It's incredible' - Guardiola joy as City reach 100 points
You can not achieve 100 points if you drop games and think it doesn't matter", he said. That position went to West Bromwich Albion, which lost 2-0 at Crystal Palace .

Although Dhar thinks there may be more upside to come for prices, he suggests higher United States output should prevent oil prices from surpassing $100 a barrel in 2019. That's down from 340 million barrels above the average in January 2017.

In a report on Monday, Opec said oil inventories in developed nations in March fell to 9 million barrels above the five-year average.

On Monday, however, markets were held in check by news of a rise in US drilling for new oil production.

In a television interview, U.A.E. Energy Minister Suhail Al Mazrouei said "don't worry about supply", because OPEC has an adequate "buffer" of potential production to offset barrels lost through renewed sanctions. OPEC has not yet signalled what this may mean for its supply cut accord, but stated that it "stands ready to support oil market stability".

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