OPEC to develop mechanism for permanent cooperation
By Sara Israfilbayova
The Organization of Petroleum Exporting Countries (OPEC) is planning to develop a mechanism for permanent cooperation with the parties to the oil production reduction transaction during 2018, and then discuss it with non-OPEC countries, Bakheet al-Rashidi, Kuwait’s Oil Minister told RIA Novosti.
“We saw the benefits of our cooperation in 2017 and we are interested in the OPEC countries and independent producers maintaining and developing cooperation, and we think that the best way is to create a permanent structure that will become the cornerstone of such cooperation in the future if the market,” the Minister said.
At the end of January, Russian Energy Minister Alexander Novak stated that the countries of the OPEC + agreement after the expiration of the oil production reduction deal are going to hold joint consultations every six months or a year with the involvement of other countries.
Brent crude futures are at $70.40 per barrel, down 3 cents from their last close, after dropping as low as $70.07 earlier in the day.
U.S. West Texas Intermediate (WTI) crude futures are at $65.52 a barrel, up 1 cent from their previous close, recovering from a session-low of $64.91 a barrel, according to Reuters.
According to the forecast of the Energy Information Administration (EIA) of the U.S., the country expects to overtake Saudi Arabia in terms of oil production by the autumn of 2018, and if it is saved by the kingdom at the current level, this may happen even earlier - in May.
In September 2018, oil production in the U.S. will be 10.08 million barrels per day and will grow to 10.34 million barrels of oil per day by the end of 2018, in accordance with the forecasts.
In November 2016, the OPEC summit was held in Vienna, where OPEC members reached an agreement on reducing oil output by 1.2 million barrels per day. In December 2016 was a meeting of oil producers outside the OPEC. The meeting ended with signing an agreement to reduce oil production by a total of 558,000 barrels per day starting from January 2017.
OPEC and its partners decided to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.
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