Crude Oil Prices Fall Ahead of Key OPEC Meeting

Also in Asia, Iran has taken over the place of Saudi Arabia turning into the largest supplier of crude oil to India and statistics reveal that in October, Iran shipped 789 thousand barrels of crude to the Asian state remaining ahead of Saudis who exported 697 thousand barrels in the same time preiod.

For two years, OPEC tried to bury a growing army of upstart producers by flooding the markets with crude. Iran insists it should be allowed to restore output to pre-sanctions levels, while it remains unclear if Iraq is still disputing the OPEC supply estimates that would provide the basis for any cuts.

OIL prices may go up by P1.20 to P1.50 per liter this week to reflect the movements in world oil prices, a source said over the weekend.

Oil prices tumbled on Monday on worries that producer countries may not be agree on a deal to cut output, pressuring USA stock futures and Asian shares. This move is meant to increase pressure on recalcitrant OPEC members, Iran and Iraq, to agree to the freeze and cut quotas set by the technical committee.

“If OPEC members. agree, oil prices will reach $50 to $55 next year and $60 by the end of the year”, Bouterfa was quoted as saying.

“The oil price fall, which has been harming the global economy, should be stopped”.

Oil prices dived from $110 in mid-2014 to a low of $27 in January 2016, before recovering to $47 now.

U.S crude still ended the week up 0.81% after trading in a range between $45.77 and $49.20 a barrel. “This FX effect has helped some producers lower their cost curve materially during the downturn on top of traditional cost cutting”, the USA bank added.

US shale drillers have already benefited from OPEC efforts to lift prices. “Now, it’s about how to divide it [the proposed OPEC cut] between the members”, he said, referring to the outcome of an informal OPEC meeting in late September in Algiers on the sidelines of the 15th International Energy Forum. Royal Dutch Shell (RDSA) closed off 0.3%.

That in turn prompted players to take profits in the dollar, which had risen on expectations higher USA bond yields would encourage investors to put more money in the dollar assets. “We’ve still got big inventories and supply overhang”. “With Saudi Arabia communicating to the market that they were somewhat bullish about a pickup in demand throughout 2017, they have essentially prepared (the) market (for) non-agreement”, said Gary Huxtable, of investment advice company Atlantic Pacific Securities. Al-Falih added he sees no imperative to cut Saudi Arabia’s 10.6 million bpd production and does not believe that OPEC has to cut production at all.