OPEC's Deal To Slash Oil Production Gets Support From Azerbaijan's Government

US investment banks see low oil prices despite OPEC cut

Kotak positive on GAIL, ONGC after OPEC production cut decision

International Brent crude oil futures LCOc1 were at $60 per barrel at 0746 GMT, up 3 cents from their last close.

U.S. West Texas Intermediate (WTI) crude futures were weaker, however, dropping 12 cents from their last settlement to $52.59 per barrel, weighed by surging U.S. output as the booming American oil industry is not taking part in the announced cuts.

In a monthly report, the Organization of the Petroleum Exporting Countries said 2019 demand for its crude would fall to 31.44 million barrels per day, 100,000 bpd less than predicted last month and 1.53 million less than it now produces.

"U.S. oil production growth continues relentlessly and will probably continue for the foreseeable future to offset any supply-side adjustments from the OPEC+ group", Razaqzada said. The producers will also sign a long-term agreement in April to formalise the cooperation between Opec and non-Opec parties to the cuts, the minister said. That cut was split into an 800,000 bpd cut from OPEC, while non-OPEC members pledged to reduce their output by 400,000 bpd.

USA oil prices climbed on Wednesday, supported by expectations that an OPEC-led supply cut announced last week for 2019 would stabilise markets. Since October, 2018 Oil price have dropped by nearly 30%, and this decision is expected help oil producers.

"We believe oil prices will resume their path back up to $70 average next year, potentially higher in the second quarter for a brief spell of time". Iran has been compromised as well as Libya and Venezuela, considering US sanctions.

Crude prices are down around a third since early October amid the financial market slump and an emerging oil supply overhang.

No oil output cut decision was announced on Thursday after hours of a meeting of the Organisation of the Petroleum Exporting Countries (OPEC). "Production's exceeding of the consumption in the market and predictions about the decline in the world economy for the next year determined the fall in oil prices". The slower economic growth is expected to influence the demand for oil next year and along with the growing production in the USA, the prices are estimated to decline eventually.

The world's leading oil cartel OPEC reached a deal with non-OPEC oil producers last week in Vienna to curtail the daily output of crude, meant to help stop oil prices from sliding further downhill that began in October.

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