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Iran oil minister says hopes OPEC will not follow USA orders

27 September 2018

UD light crude was $1.43, or 2 per cent, higher at $72.21.

Oil rallied after the Organization of Petroleum Exporting Countries and its partners stopped short of pledging immediate production increases even though looming USA sanctions on Iran have started removing barrels from the market.

OPEC leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, effectively rebuffed Trump's demand to lower prices on Sunday and failed to provide answers on how they would counter falling supplies from Iran.

Oil is maintaining strong bullish momentum, with daily MA's in full bullish configuration, supporting the advance.

This meeting was held while new sanctions against Tehran scheduled in early November should be a fall in iranian exports over the next few months, reducing the supply of black gold on the market.

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Saudi Arabia's Energy Minister Khalid al-Falih, who chaired the meeting, told reporters that countries with spare capacity will deal with possible supply shortages.

The Joint OPEC-non-OPEC Ministerial Monitoring Committee (JMMC) convened in Algiers, for its tenth meeting, said that the despite the growing uncertainties surrounding market fundamentals, the 25 producing countries continue to seek a "balanced" and sustainably "stable" global oil market.

USA crude stockpiles fall for a fifth week to 2015 lows
Trump resumed his attacks on OPEC Thursday morning amid oil prices that have climbed to their highest level in two months.

India's economy will grow at the fastest pace through 2040 and the country's oil demand growth will remain the fastest globally, in a market that will likely require investments of over $11 trillion.

Russian Energy Minister Alexander Novak has accused the USA of destabilising the global oil market, urging for wider cooperation between OPEC and non-OPEC producers to reach long-term stability. The biggest source of new global supply, USA shale, is also experiencing growing pains as pipeline bottlenecks and workforce issues may hamper growth, he said.

Oil prices hit a four-year high of $81.48 a barrel on Tuesday after Saudi Arabia and Russian Federation appeared to reject calls from the United States to increase production amid looming sanctions against Iranian oil.

Riyadh and Moscow have called in June to amend this agreement to increase their production and compensate for the losses caused by the u.s. sanctions against Iran, a founding member of the Organization of petroleum exporting countries (Opec) and other signatory.

Hedge funds and other money managers raised their combined net long position in the six most important petroleum contracts by just 3 million barrels to 1.049 billion barrels.

In August, OPEC and its allies cut production by 600,000 bpd more than their pact required, mainly as a result of falling output in Iran as customers in Europe and Asia reduced purchases ahead of the USA sanctions deadline.

Oil leaped after the world's top producers chose to maintain output during a meeting in Algeria at the weekend.

Total primary energy demand is expected to increase by 91 million barrels oil equivalent per day (mboe/d) and reach 364,7 mboe/d in 2040, according to OPEC's World Oil Outlook for 2018.

Iran oil minister says hopes OPEC will not follow USA orders