OPEC members Iraq, Nigeria agree to cut oil output

OPEC members Iraq, Nigeria agree to cut oil output

OPEC members Iraq, Nigeria agree to cut oil output

The session high was $63.26.

OIl prices were driven lower by the sacking on Tuesday of U.S. National Security Advisor John Bolton by President Donald Trump.

Not only will the easing of sanctions on Iran bring new oil into the market, but experts are saying it may hit the market before the end of the year.

Crude Oil Futures dropped from $57.23 a barrel to $56.18 at the time of writing. Bolton, a hawk on Iran, had practically blocked all attempts of diplomacy between the Trump administration and Tehran while in office, those in the know said.

In its September report, the Organization of Petroleum Exporting Countries (OPEC) said that in 2019 demand will be 1.02 million barrels per day (bpd), 80 thousand less than expected the previous month.

OPEC agreed on Thursday to trim oil output by asking over-producing members Iraq and Nigeria to bring production in line with their targets as the group strives to prevent a glut amid soaring US production and a slowing global economy.

World oil stockpiles and supplies are plenty, according to the latest OPEC monthly report, despite the loss of more than two million barrels per day of Iranian oil exports.

The EIA, meanwhile, reported US crude exports at a blistering pace of 3.3 million bpd for the week ended Sept 6. That lifted total exports of crude and products to almost 9 million b/d.

OPEC's policy of supporting prices through supply cuts has given a sustained boost to U.S. shale and other rival supply, and the report suggests the world will need less OPEC crude next year. Indeed, the cartel's monthly report highlighted the need for production cuts to prevent more oversupplies.

Saudi Arabia's new energy minister said on Thursday that the kingdom would continue to over comply voluntarily with oil output cuts agreed by the OPEC+ producer alliance. "Understandably, OPEC is anxious and the market even more at what lies ahead for the cartel".

The Saudis reclaimed the top exporter's spot in July and August as hurricanes disrupted USA production and the trade dispute "made it more hard for shale shipments to find markets", the IEA said.

Crude stocks at the Cushing, Oklahoma, delivery hub fell 798,000 barrels to 39.3 million barrels, their lowest since November 2018.

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