Goldman says oil prices could fall below $40 if OPEC doesn't act

Opinion

Market Movers, Jul 10-14: New compliance measures likely for OPEC, non-OPEC oil output cuts?

Due to oversupply, several banks were encouraged to cut their forecasts for crude, which resulted in fall of oil prices.

Crude oil production in Nigeria rose slightly above 2 million per barrels per day in June 2017.

Increased shale production will transform the US into one of the world's top oil exporters in just a few years, according to a new forecast by the consultancy PIRA Energy Group.

The ministerial talks would be preceded by a meeting of a technical committee involving all OPEC and non-OPEC members now participating in the oil output-cutting deal.

Almarzooq is chairman of the committee monitoring the compliance of OPEC and non-OPEC suppliers with output cuts that started in January and have been extended to March 2018. In the four months through June, when any cuts in Opec crude deliveries to the USA should have begun to show up in lower import numbers, the oil stockpile tumbled by nearly 21 million barrels.

On December 1, 2016, the Ministry of Petroleum Resources announced the decision of the OPEC (Organization of Petroleum Exporting Countries) after strategic negotiations to exempt Nigeria from the oil output cut agreement.

"We are not so much interested in the cost of oil but the cost of our national currency", he said. This has prompted more talk among producers about including them in the pact.

The energy analyst noted, however, that expectations were too high.

Vygon Consulting has calculated that a change of Rb1 in the ruble-to-dollar exchange rate makes a significant difference, of around Rb150 billion for the oil industry. United States crude oil (SCO) (BNO) (IEZ) prices have fallen 21.7% year-to-date, which motivated major oil producers to cap their production.

There is, however, less certainty in the forecasts of export crude flows and domestic refining.

WTI light sweet oil was down 44 cents at $43.96 a barrel, edging back near yearly set in June. The short answer is that the oil has been sent elsewhere.

Representatives from Saudi Arabia also usually attend. RBOB gasoline futures remained flat at 1.501 a gallon at the NYMEX.

Stockpiles in Oklahoma, U.S., the delivery point for West Texas Intermediate crude, reportedly dropped 2.1 million barrels in the week to July 7.

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