Even as losses were capped by Iran saying it would encourage other members to join an output freeze, Iraq said it wanted to be exempt from an OPEC deal to cut production. This announcement resulted in the fall of crude oil prices on Monday.
While U.S. West Texas Intermediate (WTI) crude CLc1 was down 61 cents at $50.23, Brent crude futures LCOc1 were down 45 cents at $51.33 a barrel by 1340 GMT.
The Organization of the Petroleum Exporting Countries is aiming to achieve a reduction in oil production to reduce the global oil glut and thereby increase prices of global crude. But Baghdad wants to be exempted from any production cut the Organization of the Petroleum Exporting Countries, Iraqi oil minister Jabar Ali al-Luaibi said.
Iraq's market share had been compromised by the wars it has fought since the 1980s, said Falah al-Amiri, head of Iraqi state oil marketer SOMO.
"We should be producing 9 million (barrels per day) if it wasn't for the wars," he said.
Down from September's 33.39 million bpd, the OPEC has targeted to reduce its output to between 32.5 million barrels per day (bpd) and 33 million bpd which was announced by the oil cartel as its plans last month. At its next meeting in Vienna on Nov. 30, the the group is expected to iron out the details about how it will hit the target as planned and announced.
"A decision to cut to 33 million bpd should keep the crude price basis Brent in the $50-$60 band, not least because it shows that Saudi policy has changed, that OPEC is serious and can rise above political disagreements," David Hufton, of consultancy PVM, said in a note.
Up from September's 4.774 million bpd, Iraq said it could raise output slightly this month.
On Monday at a meeting with OPEC Secretary-General Mohammed Barkindo, a short-term cap in oil output would reduce market volatility, said Russian Energy Minister Alexander Novak even as both the parties look to stabilize prices.
He was confident an agreement between Russia and leading oil exporters on oil market stabilization would be eventually reached, Novak also told a Russian television channel.
However, earlier in the session, oil prices were pushed higher thanks to the comments from Iran's deputy oil minister Amir Hossein Zamaninia. He said that $55-$60 a barrel is a fair price to bring stability to the market and that Tehran would encourage other OPEC members to join an output freeze.
In terms of production and consumption, oil markets might be rebalancing, said analysts. The oil markets have been dogged by two years of oversupply resulting in historic drop in prices.
"The market moved into a small deficit in Q3, will remain so in Q4 and then the deficit will expand significantly in 2017," Barclays bank said in a note to clients
(Source:www.reuters.com)
While U.S. West Texas Intermediate (WTI) crude CLc1 was down 61 cents at $50.23, Brent crude futures LCOc1 were down 45 cents at $51.33 a barrel by 1340 GMT.
The Organization of the Petroleum Exporting Countries is aiming to achieve a reduction in oil production to reduce the global oil glut and thereby increase prices of global crude. But Baghdad wants to be exempted from any production cut the Organization of the Petroleum Exporting Countries, Iraqi oil minister Jabar Ali al-Luaibi said.
Iraq's market share had been compromised by the wars it has fought since the 1980s, said Falah al-Amiri, head of Iraqi state oil marketer SOMO.
"We should be producing 9 million (barrels per day) if it wasn't for the wars," he said.
Down from September's 33.39 million bpd, the OPEC has targeted to reduce its output to between 32.5 million barrels per day (bpd) and 33 million bpd which was announced by the oil cartel as its plans last month. At its next meeting in Vienna on Nov. 30, the the group is expected to iron out the details about how it will hit the target as planned and announced.
"A decision to cut to 33 million bpd should keep the crude price basis Brent in the $50-$60 band, not least because it shows that Saudi policy has changed, that OPEC is serious and can rise above political disagreements," David Hufton, of consultancy PVM, said in a note.
Up from September's 4.774 million bpd, Iraq said it could raise output slightly this month.
On Monday at a meeting with OPEC Secretary-General Mohammed Barkindo, a short-term cap in oil output would reduce market volatility, said Russian Energy Minister Alexander Novak even as both the parties look to stabilize prices.
He was confident an agreement between Russia and leading oil exporters on oil market stabilization would be eventually reached, Novak also told a Russian television channel.
However, earlier in the session, oil prices were pushed higher thanks to the comments from Iran's deputy oil minister Amir Hossein Zamaninia. He said that $55-$60 a barrel is a fair price to bring stability to the market and that Tehran would encourage other OPEC members to join an output freeze.
In terms of production and consumption, oil markets might be rebalancing, said analysts. The oil markets have been dogged by two years of oversupply resulting in historic drop in prices.
"The market moved into a small deficit in Q3, will remain so in Q4 and then the deficit will expand significantly in 2017," Barclays bank said in a note to clients
(Source:www.reuters.com)
