Oil prices marginally down over strong dollar value

Randall Padilla
September 26, 2017

"Firstly, all members should commit 100 percent to the production cut agreement and secondly, the production level of Nigeria and Libya should be brought into consideration", he said.

Global crude prices rose amid a falling number of drilling rigs in the U.S. and news that Iraq expressed support for a decision to extend a deal between OPEC and non-OPEC nations to cut output. But he noted demand for USA crude appeared to be lower, partly as a result of the aftereffects of Hurricane Harvey.

Asked when Nigeria was willing to join the supply limiting deal, the minister said the country already had, in effect.

Oil prices have risen by 15 percent in the past three months.

Last week also saw a meeting in Vienna, Austria, between the Organization of the Petroleum Exporting Countries (OPEC), Russia and other crude producers who participated in the deal to reduce production by 1.8 million barrels per day (bpd) since the beginning of this year.

The WTI crude front month discount to the same month of Brent futures hit 6.28 dollars, the widest since August 2015, as U.S.crude was pressured by hurricane damage to US refineries.

Global benchmark Brent crude futures were at $56.35 a barrel at 0249 GMT, down 8 cents, or 0.1 percent, from their last close.

The higher price of oil is also expected to translate into higher prices at petrol pumps, which could push inflation above 3%. Crude exports from the Middle East to Asia will rise 7.5 million barrels a day between 2016 and 2040, he said. That was higher than the 3.5-3.9 million barrels estimated by analysts but still smaller than weekly builds of up to 8 million barrels seen in the first two quarters. Earlier this year, Brent was in a "contango" situation, where nearby contracts traded at a discount to those farther out. All comments are subject to editorial review.

Another thing that anxious him, he said, was the "significant producer selling" in Wednesday's session, which indicated that USA shale production could only go higher.

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