Saudi Arabia Won't Substantially Raise Output if Agreement Isn't Extended


So far in February 2018, USA crude oil production has topped 10 million bpd in each of the three previous weeks, EIA data shows.

OPEC officials will meet US shale executives at a USA energy conference on Monday, underlining the influence of American output on global prices.

Light, sweet crude for April delivery fell 90 cents, or 1.4%, to $63.01 a barrel on the New York Mercantile Exchange.

The U.S. West Texas Intermediate crude April contract was steady at $63.52 a barrel by 07:40 GMT, just off Friday's two-and-a-half week high of $63.73.

Finally, the recent startup of the Louisiana Offshore Oil Port (LOOP), which is the only port capable of handling the oil industry's largest oil tankers, has raised expectations of a flood of US oil reaching the global market.

Prices did draw some support from Saudi Arabian oil minister Khalid al-Falih, who on Saturday said the country's crude production in January-March would be well below output caps, with exports averaging less than 7 million barrels per day.

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The U.S. versus the world While the rest of the globe's oil producers are working to trim output, bringing supply and demand into balance, United Arab Emirates Energy Minister Suhail Al Mazrouei said Tuesday in Abu Dhabi that strong U.S. shale growth continues to be a risk factor. Crude stocks at the Cushing, Oklahoma, delivery hub for USA futures USOICC=ECI fell 2.7 million barrels last week.

Oil producers from OPEC and non-OPEC countries struck a historic deal in late 2016 to cut output by 1.8 million barrels per day, following a surplus in crude supply that sent prices crashing in 2014.

The prices for oil grow at the expense of strict discipline Saudi Arabia, easing concerns about oversupply of oil in the United States and the disruption of supplies from Libya. "And for another, new pipeline capacities mean more crude oil is leaving Cushing".

Most of the drawdown has come from the liquidation of bullish long positions rather than the establishment of new bearish short ones and it has been proportionately greater in fuels rather than crude. "Investors are now keeping a close watch on the USA inventory number as growth has been rather slower than expectations".

As U.S. exports continue to rise, the price gap between WTI and Brent has sharply narrowed.

"We need to add 15 million barrels daily by 2040 to meet demand", he added, putting the needed investment at $10.5 trillion. It is reported the VLCC LOOP-loaded crude oil cargo is destined for China. "We'll see tomorrow what the EIA data says".