UAE Energy Minister, “No talk about further OPEC supply cuts”
OPEC and allied non-OPEC producers agreed on 25 May to extend an existing supply curb into Y 2018
There is no talk of further Crude Oil output cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies despite only a slow drawdown in inventories, the United Arab Emirates’ energy minister said last week on Thursday.
“I think OPEC countries and non-OPEC countries who joined us have done their part. We are looking at the others to do their part as well. We are not worried about the market recovery,” Suhail bin Mohammed al-Mazroui told journalists on the sidelines of a conference in Paris.
OPEC and allied non-OPEC producers agreed on 25 May to extend an existing supply curb into Y 2018, but Crude Oil prices have fallen on rising production from the United States and from Nigeria and Libya, 2 OPEC members exempt from cutting output.
“Of course additional production coming from several producers is prolonging the recovery but I think that is rather short-term. We hope to see more recovery in the 3rd and 4th quarters,” he said.
“There has been a correction, yes, the correction is a little bit slower than expected. We are at the bottom of the 2nd quarter and it is always a low-demand Quarter. In the 3rd and 4th quarters, we will have a pick-up in demand and hopefully reach a more balanced market,” Mr. Mazroui said.
Crude Oil is now consolidating higher since the commodity hit 11-month low. Support is given at 42.05 (21/06/2017 low). Expected to show renewed weakness.
In the long-term, Crude Oil has recovered after its sharp decline last year.
Strong Support lies at 35.24 (05/04/2016) while Resistance can now be found at 55.24 (03/01/2017 high).
|HeffX-LTN Analysis for OIL:||Overall||Short||Intermediate||Long|
|Neutral (-0.16)||Bearish (-0.28)||Neutral (0.08)||Bearish (-0.29)|