OPEC extends oil output cut by nine months - analysts comment

Record ID: 875762

  • Title: OPEC extends oil output cut by nine months - analysts comment
  • Date: 25th May 2017
  • Summary: DUBAI, UNITED ARAB EMIRATES (MAY 24, 2017) (REUTERS) (SOUNDBITE) (English) THOMAS STREATER, HEAD OF RESEARCH, MB COMMODITIES CAPITAL, SAYING: "Saudi needs a higher oil price because they want to maximise the valuation of the Aramco IPO next year. Whereas Iran, because they've drawn down a lot of their floating storage, they have less barrels to sell into the market, so they don't want to really cut production too much. Iraq has got its own issues."
  • Embargoed: 8th June 2017 12:19
  • Keywords: analysts comment by nine months oil output cut OPEC extends
  • Location: VARIOUS, SAUDI ARABIA / ENGLAND, LONDON, UK / DUBAI, UAE
  • City: VARIOUS, SAUDI ARABIA / ENGLAND, LONDON, UK / DUBAI, UAE
  • Country: Saudi Arabia
  • Topics: Commodities Markets,Economic Events
  • Reuters ID: LVA0026IC6JKD
  • Aspect Ratio: 16:9
  • Story Text: Analysts give their views on why OPEC has decided to extend cuts in oil output by nine months to March 2018, according to an OPEC delegate.
    The producer group is battling a global glut of crude after seeing prices halve and revenues drop sharply in the past three years.
    The cuts are likely to be shared again by a dozen non-members led by top oil producer Russia, which reduced output in tandem with the Organization of the Petroleum Exporting Countries from January. Non-OPEC producers meet OPEC later on Thursday.
    OPEC's cuts have helped push oil back above $50 a barrel this year, giving a fiscal boost to producers, many of which rely heavily on energy revenues and have had to burn through foreign-currency reserves to plug holes in their budgets.
    Oil's earlier price decline, which started in 2014, forced Russia and Saudi Arabia to tighten their belts and led to unrest in some producing countries including Venezuela and Nigeria.
    The price rise this year has spurred growth in the U.S. shale industry, which is not participating in the output deal, thus slowing the market's rebalancing with global crude stocks still near record highs.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2017. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register