OPEC Faces Key Test at Upcoming Meeting

OPEC Faces Key Test at Upcoming Meeting

OPEC Faces Key Test at Upcoming Meeting

"You can not place sanctions on two OPEC founder members and still blame OPEC for oil price volatility", he said, referring to his country and Venezuela. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High!

"OPEC's policy will more than likely change come 22 June, 18 months of hard graft and quite frankly, astounding compliance by all members has done its job and flat price is up at the dizzying heights of US$76 per barrel", said Dubai-based Matt Stanley, fuel oil broker, Freight Investor Service.

Iran's share of OPEC production increased slightly last month, possibly a sign that the country's crude exports have not yet been affected by the United States decision to ditch a landmark worldwide nuclear accord with Tehran and re-impose damaging sanctions.

India today voiced its concern over high global oil prices with oil producers cartel OPEC and nudged it to move to responsible pricing that balances interests of both producers and consumers.

A week before the Vienna meeting and a day before the latest Russian-Saudi discussions on the cuts, U.S. President Donald Trump attacked OPEC again with a succinct tweet, "Oil prices are too high, OPEC is at it again". Prices have risen around 60 percent over the past year.

Shortly after Trump's tweet on Wednesday, Senate Minority Leader Charles E. Schumer, D-N.Y., took to Twitter to respond.

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In the USA, petrol pump prices nationwide have risen to near $US3 a gallon during the peak summer travel season, still less than the $US4 a gallon during the 2007-2009 Great Recession.

Brent crude futures LCOc1, the worldwide benchmark for oil prices, were at $75.65 per barrel at 0329 GMT, down 23 cents, or 0.3 percent, from their last close.

US crude output has risen nearly 30 percent in the last two years to a record high of 10.9 million barrels per day.

The meeting with the envoys and the talks with China, thus, laid the ground for Pradhan to forcefully convey India's message to OPEC energy ministers at the two-day OPEC International Seminar in Vienna next week. The country would also support keeping the alliance between OPEC and other producers into 2019 - either with or without new quotas depending on the requirements of the market, the person said.

"The demand metrics here are wonderful for crude oil and gasoline", said John Kilduff, a partner at Again Capital in NY. But, with Brent prices up by around 180 percent from their 2016 low, global crude inventories falling, Venezuelan production plummeting and imminent sanctions against Iran, the group may soon end their supply cuts. The kingdom reported that it increased production in May to about 10 million barrels a day.

And a fifth OPEC source said that if OPEC decided next week to raise output it would not be with "immediate effect" and would be gradual, suggesting supply would not rise for three to four months after a June decision.

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