Oil ministers from Saudi Arabia and other OPEC producers plans to extend the production cuts into the second half of 2019.
Wednesday 22, May 2019
(Bloomberg) --Oil held gains on signs that Organisation of Petroleum Exporting Countries (OPEC) and its allies will extend production cuts beyond June, while prices remained capped by worsening trade relations between the US and China.
Saudi Energy Minister Khalid Al-Falih urged the OPEC+ coalition to stay the course on output limits.
The possible extension of supply curbs by OPEC and its allies could be a catalyst for oil to resume its rally after floundering over the past month.
Rising tension in the Middle East and involuntary output cuts from Venezuela to Russia have also been boosting prices, while rising stockpiles in the US and the breakdown in relations between the world’s two biggest economies keeps gains in cheque.
Al-Falih said the Kingdom is not fooled by crude prices and believes the market is still fragile.
Additionally, Russian Energy Minister Alexander Novak said his country would still comply with any agreed output limit until year-end, while suggesting he is open to relaxing the cuts.