Opec, allies rule out urgent hike in oil output

Marco Green
September 24, 2018

J.P. Morgan said in its latest market outlook, published on Friday, that "a spike to $90 per barrel is likely" for oil prices in the coming months due to the Iran sanctions.

The price rise is notably caused by a recent drop in Iran's supply because of USA sanctions.

In its latest forecast on the global oil landscape, the Organization of the Petroleum Exporting Countries said it expects USA shale growth to "slow significantly" after 2023, before peaking at 14.3 million barrels a day between 2027 and 2028.

Benchmark Brent oil reached $80 a barrel this month, prompting Trump to reiterate on Thursday his demand that the Organization of the Petroleum Exporting Countries lower prices.

He said on Twitter "they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices".

"Decisions can only be made at OPEC meetings in the presence of all OPEC members and by consensus of members", he noted.

It also steeply raised USA oil output growth estimates to 2023, predicting OPEC would lose further market share.

Falih said attending ministers "showed us that they have spare capacity that they are ready to deploy if there is demand for it, if it is required by any shortfall".

"The markets are adequately supplied".

"We still have a job to complete which is going to the 100 per cent", said Al Mazrouei on the sidelines of a meeting by Opec and non-Opec energy ministers.

"I do not influence prices", Falih told reporters in Algiers ahead of a meeting of OPEC ministers and allies such as Russian Federation to discuss the situation in oil markets.

Russian Energy Minister Alexander Novak also ruled out the need for any immediate output increase, and said a trade war between China and the USA as well as sanctions on Iran were creating new challenges for oil markets.

In May the United States pulled out of a 2015 deal between world powers and Iran under which worldwide sanctions were lifted in return for curbs on its nuclear programme.

Iran's OPEC governor Hossein Kazempour Ardebili insisted on Sunday that Iranian production was steady at 3.8 million bpd but appeared to soften his stance on potential increases in OPEC output.

"I expect all countries to exercise their sovereignty and not to abide by the instructions of Trump", he said.

Other reports by Click Lancashire

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