OPEC oil ministers to meet informally in September

Al-Sada added that prices have have experienced “steady improvement” since February following “a decline in crude oil production, supply outages and a decrease in oil inventories, while global demand for oil improved”.

The recent slide in prices reflects weaker refining margins, a surplus of refined products, plus the UK’s vote to leave the European Union and its impact on the financial markets, according to the statement attributed to Al Sada. Al-Sada also said that the recent decline in oil prices is only temporary and has come as a result of weaker refinery margins, inventory overhang and the timing of the United Kingdom decision to exit the European Union.

“Higher oil demand is expected in the third and fourt quarters”, Al-Sada said.

Oil prices settled lower on Friday (http://www.marketwatch.com/story/oil-futures-ease-finding-stability-around-40-a-barrel-2016-08-05) after data showed the number of US oil rigs rose for a sixth straight week. Brent fell to about $40 a barrel last week. The continuing fall pressured OPEC members causing them to throw out an offer to take on a new output limit instead of adhering to a policy of unregulated oil production.

Crude oil prices moved higher at the start of trading Monday in NY, with the price for Brent crude oil up 1.6 percent to open at $45.00 per barrel.

Light, sweet crude for September delivery rose 59 cents, or 1.4 percent, to $42.39 a barrel, while October Brent on London’s ICE Futures exchange gained 55 cents, or 1.2 percent, to $44.82 a barrel.

Crude oil futures surged nearly three per cent Monday following a report in the Wall Street Journal that said some OPEC members had called for restraint on output.

Chinese oil imports rose over 50% in July from a year ago, following ease in demand growth.

Opec member Iran has been the main opponent of a freeze as it looks to raise its output to levels seen before the imposition of now-ended Western sanctions. The energy group climbed 2.1 per cent overall.

Another ongoing issue facing OPEC nations includes some of its members who want to increase the organization’s cooperation with oil-rich, non-OPEC members, including Russian Federation. The reference basket price rose by almost $1 as of July 1, but it’s been steadily downhill since then. After all, major oil producers failed to reach a pact to freeze production levels at a meeting in Doha, Qatar earlier this year.