News just breaking from a progess review meeting in Kuwait 26 March
- expresses satisfaction with cuts so far
- certain factors have led to further increase in crude oil stocks
- committee says it is asking OPEC secretariat to make recommendations in April on whether to extend cuts
- end of US refinery maintenance season and reduced floating storage will support efforts to stabilise market
Reuters reporting having seen a draft press release from this morning's meeting which says:
"The committee expressed its satisfaction with the progress made towards full conformity with the voluntary production adjustments and encouraged all participating countries to press on towards 100% conformity."
OPEC and 11 other leading oil producers including Russia agreed in December to cut their combined output by almost 1.8m bpd in the first half of the year.
Ahead of today's meeting the Iraqui oil minister,Jabar Ali al-Luaibi, said earlier this morning:
"The secretary-general of OPEC is making a comprehensive investigation, analysis, of the market ... he may recommend an extension of the declaration and this will be seen by the next OPEC meeting (in May)"
He further said there were some encouraging elements that suggested the oil market was improving, and that if all OPEC members agreed measures to help price stability, Iraq would support such steps.
"Any decisions taken unanimously by members of OPEC ... Iraq will be part of the decision and will not be deviating from this,"
Reuters has more here
The initial decision to make cuts saw a rally in oil prices but the subsequent retreat is obviously giving cause for concern with the full amount of cuts yet to be achieved. This latest move might do something to support current prices suggesting an OPEC/non-OPEC sense of resolve but could equally be seen as them facing an uphill task. I favour the latter as I did at the outset but I'm no oil expert.
On Friday WTI closed at $47.97 after a day's range of $47.54-$48.20
Brent closed at $50.80 in a range of $50.40-$51.06
