Oil prices rise slightly as oversupply concerns mount again

Oil prices rise slightly as oversupply concerns mount again

Oil prices rise slightly as oversupply concerns mount again

Rather, this month's load, and likely the next three, scheduled for April, will have to be purchased from France's Total.

Oil prices have been buoyed for weeks amid rumours that OPEC and Russian Federation are working on a deal to cut production and would hold an emergency meeting on the matter on March 20. At that, in the 3rd quarter it is expected the largest drop of oil production on all the FSU countries, including Azerbaijan.

Overall, South Korea imported 12.92 million tonnes of crude last month, or 3.26 million bpd. But it won't be in time for the tentative April meeting, which means that Iran would be excluded from any deal.

OPEC exports to Africa increased by 46 per cent to 0.69 million bpd, while exports to Asian buyers fell by 14.3 per cent to 15.43 million bpd.

How long would we have to wait for Iran to join an output freeze? Iranian production increased last month by the most in nearly two decades following the end of global sanctions, Opec said in its monthly report Monday. It plans to boost crude output to 4 million barrels a day, the highest level since 2008, Zanganeh said, according to the Iranian Students News Agency on Monday.

Zangeneh dismissed the idea of a production freeze by Iran as "a joke", according to the TV report.

Those sanctions were effectively removed in January, paving the way for Iran to increase its production of crude and adding uncertainty to already jittery oil markets.

But with US crude stockpiles continuing to hit new records and Iran showing little interest in joining such a freeze, analysts expect no fundamental change to the glut in the near future.

Hence, the fate of the accord and any dialogues regarding the same are contingent on Iran's cooperation. Baker Hughes said there were just 480 rigs drilling for oil and natural gas last week, down by a stunning 57% from the year before.

Saudi Arabia's participation in the talks has been deciphered by the market as the country's acknowledgement that there is a problem in the market. That's over 600,000 barrels per day more than it produced in February, according to a report by the Organization of the Petroleum Exporting Countries. Additionally, the rise in prices could lead to a hike in production which could once again lead to a demand supply mismatch. However since then, due to the higher cost of production for shale producers in the U.S., there has been a drawdown in production in the country.

The IEA, which coordinates energy policies of industrialised nations, said it now believed non-Opec output would fall by 750,000 barrels per day (bpd) in 2016, compared with its previous estimate of 600,000 bpd.

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