Published: Thu, June 13, 2019
Economy | By

Oil rises on supply cuts, but weak economy holds market back

Oil rises on supply cuts, but weak economy holds market back

Meanwhile, Russia's Energy Minister, Alexander Novak, was quoted to have said the country is not ready to commit to further production cuts under an OPEC/non-OPEC supply accord, with the oil market facing many uncertainties in the months ahead.

China's crude oil imports slipped to around 40.23 million tonnes (9.47 million barrels per day), down from an all-time peak of 43.73 million tonnes in April, customs data showed on Monday, as the world's top importer of the commodity curbed shipments from Iran amid tightening US sanctions on that country.

Saudi Arabia and Russian Federation work on a bilateral basis as well as with other producing countries to prevent oil prices from plunging, visiting Saudi Arabian Minister of Energy, Industry and Mineral Resources Khalid Al-Falih said here Monday.

OPEC and 10 non-OPEC partners, led by Russian Federation, agreed in December to cut a combined 1.2 million b/d in the first half of 2019.

U.S. President Donald Trump on Wednesday said he had a feeling that a trade deal could be reached, while again threatening to increase tariffs on Chinese goods if they do not make a deal.

Oil prices have more than halved in the past two years after Saudi Arabia raised output steeply in an attempt to drive higher-cost producers such as U.S. shale firms out of the market.

"We have to analyse order to take a balanced decision in July" he said, referring to a key meeting of the so-called Opec+ alliance between Opec members and other oil producing countries including Russian Federation.

Saudi Energy Minister Khalid al-Falih said on Friday OPEC was close to agreeing to extend a pact on cutting oil supplies beyond June, although more talks were still needed with the non-OPEC countries that were also part of the deal. "I see him as a serious and thoughtful leader", TASS cited the Saudi minister as saying. It was scheduled for June 25-26 but Russian Federation proposed moving it to early July, an idea opposed by Iran and others.

OPEC and its allies still have to decide when to hold their meeting.

OPEC sources said the lack of a decision was creating a headache for officials at the group's Vienna headquarters responsible for arranging security and other arrangements.

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