Published: Sun, April 14, 2019
Markets | By Otis Pena

OPEC May Raise Oil Output If Prices Increase, Shortages Mount

OPEC May Raise Oil Output If Prices Increase, Shortages Mount

West Texas Intermediate (WTI) gained $3.19 per barrel month-on-month, while Brent rallied by $2.60 per barrel.

Oil prices rose yesterday thanks to the cuts led by the Organisation of the Petroleum Exporting Countries (OPEC), as well as U.S. sanctions imposed on Iran and Venezuela.

Apart from growing speculation over OPEC's next move on crude supply, Thursday's (April 11th) data had revealed an upsurge in the United States crude stockpiles, which had also contributed potentially to the decline of U.S. crude future price.

The monthly oil market report for April said that the reality is different according to direct communication, with Angola producing 50,000 fewer bpd to 1.373 million bpd in March.

Siluanov said oil prices could drop to $40 per barrel or even less for up to one year.

Its 14 members pumped 30.02 million bpd in March, its lowest output figure since February 2015.

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Craig maintains that he never concealed information or misled the Justice Department, and he is confident he'll beat the charges. Craig worked in 2012 for Ukraine's Ministry of Justice while he was a partner at the prestigious law firm Skadden Arps.

On a less-brighter note, the World Trade Organization recently slashed its estimates for 2019 economic growth by a staggering 1.1 percent.

OPEC and its allies led by Russian Federation are due to meet in Vienna on June 25-26 to set their policy.

"Crude oil production has not been affected so far and if we can not reduce the Libyan risk to zero, we go into this weekend with a lower risk premium for Libya than a week ago", said Olivier Jakob at PetroMatrix in Zug, Switzerland.

Saudi Arabia has slashed its oil production by more than promised as part of a pact to boost oil prices, the International Energy Agency said Thursday, while warning of mixed signals for global demand. Moreover, news out that Russian Federation has shied away from committing to extend oil production cuts along with OPEC could also weigh adversely on crude prices if this risk materializes.

Meanwhile, China's oil imports stood at 39.34 million tonnes or 9.26 million barrels per day (bpd) last month, the lowest since October 2018, official data showed today.

At the last OPEC meeting in Vienna, the group's members agreed to slash output by 812,000 bpd, with Russian Federation and nine other non-OPEC allies committing to a cut of 383,000 bpd for the first six months of 2019. Additionally, U.S. crude output remained at a record 12.2 million barrels per day.

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