Oil Higher After IEA Expects Non-Opec Fall in Production

By Unknown

Minggu, 03 Juli 2016

Oil Higher After IEA Expects Non-Opec Fall in Production

The crude prices firmed on Thursday after the International Energy Agency (IEA) said no -OPEP output fall this year by the most in a generation and help rebalance a market pursued by oversupply.

head of the IEA Fatih Birol said lower oil prices had cut investment of about 40 percent over the past two years, with sharp falls in the United States, Canada, the Latin America and Russia.

Benchmark Brent crude futures rose 12 cents to $ 45.92 a barrel by 04 GMT. Forward US crude oil were 4 cents to $ 44.22. Both have gained about 70 percent from lows hit between January and February.

"It looks very strong right now, sentiment is bullish technicals look good, so I rather see higher prices further away," Commerzbank analyst Carsten Fritsch said.

the lower supply of some producers, however, could be offset by increased production in countries such as Russia and Iran.

the energy minister of Russia said it could push oil production at historical highs and Iran reiterated its intention to achieve the production of 4 million barrels per day after a global agreement to freeze production collapsed and Saudi Arabia threatened to flood the market with more crude.

Libya could quickly increase production of oil from the return of stability, the head of the National oil Corporation Libya (NOC) said an oil summit in Paris.

Nigeria will hold talks with Saudi Arabia, Iran and other producers may, in the hope of reaching agreement on an output freeze at the next meeting OPEC in June, where it should be a key agenda item.

via Reuters

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