Alexander Novak, Russian Energy Minister
Iraq Seek OPEC Exemption
After making a first challenge of the key 51.70 resistance level, Crude Oil prices have since reversed to trade lower over the week. The initial downside was fueled by reports that Iraq is seeking exemption from any OPEC Oil production cut. Iraq informed OPEC officials on Tuesday that it was ready to cooperate in agreeing on a deal on supply cuts to boost Oil prices as long is it could maintain output near current levels.
Global Demand To Remain Firm
Elsewhere global oil demand has seen steady growth despite an increase in Chinese consumption. The IEA reported that global oil demand is forecast to rise by 1.2mio barrels per day in 2017. However, in other comments, the IEA’s executive director Faith Birol said that oil demand growth could weaken if prices continue to rise.
Venezuelan energy minister Del Pino and Russian energy minister Novak met in Moscow yesterday for talks regarding joint action between the two nations in a view to furthering proposed OPEC action. Venezuela is arguably the nation most affected by the drop in Oil prices which wrought significant economic damage on the country. Venezuela is looking for non-OPEC countries to remove 0.5mio barrels per day from the market.
Aside from meeting with his Venezuelan counterpart, Russian energy minister Novak has also met with oil ministers from Qatar and Saudi Arabia as well as with Mohammed Barkindo: the OPEC Secretary General. Novak noted on Monday than an oil output freeze, or even a cut would be the right decision with a view to stabilizing global energy markets.
Middle East Oil Flows Weigh
Oil flows from the Middle-East have also added downside pressure on Oil prices with Crude oil exports having increased to 138.4 mio barrels for the week ending October 22nd. This marks a weekly increase of 2.8%, the second highest weekly volume of the year. This data comes fresh on the back of Iran’s recent announcement that it plans to raise its Crude production to roughly 4mio barrels per day over the next two weeks.
