Home Page - Gulf in the Media
HomePoliticsEconomy                               Set Gulfinthemedia.com as home page
 Print  Send This Page
Save Listen to this Article
IEA cuts estimates for crude needed from Opec   

Gulf Times - 12 August, 2017

The International Energy Agency cut estimates for the amount of crude needed from Opec this year and in 2018 after lowering its historical assessments of consumption in some emerging nations.

World oil markets are re-balancing as the Organisation of Petroleum Exporting Countries and its allies implement production cuts, the IEA said in its monthly report. Still, inventories remain high and the volume of crude needed from Opec is less than previously thought as consumption in some developing nations had been overestimated, it said.

Oil prices have lost about 9% in London this year on concern that supply curbs by Opec and partners including Russia aren’t aggressive enough to clear a global surplus.

The agency lowered projections for the amount of crude required from Opec this year and next by about 400,000 barrels a day. About 32.6mn barrels a day will be needed from the group this year, less than the 32.84mn it pumped in July.

There are also growing doubts that all the countries involved in the accord to reduce supply are fully committed, the IEA said.

Opec’s rate of compliance with the cutbacks slipped last month to 75%, the lowest since the accord started in January. Iraq’s implementation was just 34%, Venezuela’s 28% and the UAE’s 53%. Adherence among the non-members coordinating with Opec was at 67%. Despite the reduction in total demand estimates, the rate of growth for this year is stronger than previously thought, at 1.5mn barrels a day.

“Producers should find encouragement from demand, which is growing year-on-year more strongly than first thought,” the IEA said.

Opec’s cutbacks are having some success as global inventories declined in the second quarter by about 500,000 barrels a day, according to the agency. While that’s narrowing the surplus versus the five-year average – Opec’s stated objective – stockpiles were still 219mn barrels a day above this level at the end of June, the agency said.

With a lower demand outlook and higher Opec output, “stock draws later in the year are likely to be lower than first thought,” it said.

Meanwhile, Opec’s two biggest producers agreed to strengthen their commitment to production cuts and maintain balance in world crude markets, Saudi Energy Minister Khalid al-Falih said after talks with his Iraqi counterpart Jabbar al-Luaibi, according to the kingdom’s state news agency SPA.

The two ministers also agreed to ensure coordination of their nations’ oil policies, Saudi Press Agency reported on Thursday, citing comments by al-Falih after their meeting in the Red Sea city of Jeddah.

Saudi Arabia, the largest member of the Organisation of Petroleum Exporting Countries, has borne the brunt of output cuts aimed at ending a global oversupply weighing on prices.

Compliance by Iraq, Opec’s second-biggest producer, slumped to 29% in June, its lowest since the output limits took effect in January, according to data from the International Energy Agency. Opec and allied suppliers agreed to extend their cuts through next March.

Al-Falih’s remarks came a day after Opec said that Iraq, the United Arab Emirates and Kazakhstan – which have all lagged in making the output reductions they promised – affirmed that they would adhere to the cuts accord. That meeting, in Abu Dhabi, was led by Kuwait and Russia and was scheduled after several oil-supplying nations faltered in their pledges to curb output. Saudi Crown Prince Mohammed bin Salman also met with Iraq’s al-Luaibi in Jeddah and discussed coordinating oil policies and the two countries’ commitment to their pledged cuts until global markets come into balance, SPA reported
  Other Top News
Saudi financial reserves keep pressure off the currency peg
Saudi Arabia is under no pressure to ditch the currency peg to the dollar thanks to its currency reserves...
Abu Dhabi non-oil trade with 4 GCC states hits Dhs11.33b
The Emirate of Abu Dhabi's non-oil trade with four GCC states hit Dhs11.33 billon during the first five months of the year, with the Kingdom of Saudi Arabia coming on top of the emirate's Gulf trade partners...
Kuwait current account surplus narrows in Q1
Kuwait's current account surplus fell for the first time in three quarters at the start of 2017, narrowing from KD600 million ($1.98 billion) in the fourth quarter of 2016 (4Q16) to KD300 million in 1Q17, a report said...
Central Bank of Oman bats for financial inclusion
The Central Bank of Oman (CBO) is strongly advocating for financial inclusion in the Sultanate by encouraging commercial banks to ramp up the provision of banking services to under-served sections of the community, as well as in under-banked areas of the Sultanate...
Iran's daily gas exports hit 42mcm
National Iranian Gas Company (NIGC) Managing Director Hamid Araqi announced that the country's gas export has hit 42 million cubic meters (mcm) per day, Shana reported on Tuesday...
Wed Aug 23, 2017| 30-ذو القعدة-1438هـ
Syria expands anti-Daesh operations
Riyadh celebrates first Saudi Women's Day
UAE summons Iran's diplomat
Trump turns up the heat on Iran, but no clear game plan yet
Qatar tops world in BMI index for investment attractiveness
Qaeda kills Yemen police, targeted in US raid
Iran targets $8.6bn of refinery deals with Asia firms
UN chief: Syria dialogue must focus on transition for success
US President Trump strongly supports Iraq - envoy
DGCX traded 1.37m contracts valued at $33b in January
Iran rejects 'baseless' warning from US on missile test
GCC consumers spend $9.3 billion on beauty, personal care products
HM King hails parliament's role
Saudi sentenced 7 years in prison for entering Syria, joining Al-Nusra
AD CP, Emir of Qatar discuss ties

Araa Mobile App





NBK Report on oil markets
GCC Banking Sector Quarterly - 2Q16
    GCC Press Agencies
Day's main stories from the GCC Press Agencies
    GRC Analysis
World Environment Day: Time to Reconnect with Nature in GCC
The Benefits of NATO-GCC Strategic Ties
    GRC Commentary
The Trump Visit to Saudi Arabia: Time for a Course Correction
Environmental Education Must for GCC Countries
Climate COP 22 in Marrakech Important for the Region
    GRC Press Release
Gulf Research Center press releases to the media
    GRC Publications
Skillfull Survivals
The GCC and the Global Oil Market in 2016
GCC and Regional Issues
    GRC Newsletters/Bulletins

Enter your email to get the Newsletter
GRC Publication
Privacy Policy | Contact Us | Terms & Conditions | About Us |
Weather | Qibla Directions | Hijri Date Conversion Tool
Full Page :total time:0  |   49-- 49 Middle Page :0  --   | Right : 49 - 49-nonexist-en--sess-enreq-en-coming