Demand is expected to pick up in the second quarter, according to OPEC’s president. But that doesn’t mean another extension is off the table.
OPEC meets in Vienna on May 25 to consider whether to prolong the accord reached in December in which OPEC and 11 non-members agreed to cut oil output by about 1.8 MMbbl/d in the first half of 2017.
Both crude benchmarks have gained more than 10% from their May lows below $50 per barrel, rebounding on a consensus that OPEC and other producers will maintain strict limits on oil production.
OPEC and non-OPEC ministers meet for informal consultations in Vienna on May 24 in a last-ditch bid to agree on the duration of oil output cuts.
DONG Energy agreed to sell its oil and gas business to petrochemicals firm Ineos for $1.3 billion, it said May 24, the latest in a string of North Sea deals.
Saudi Energy Minister Khalid al-Falih said he did not expect any opposition within OPEC to extending the curbs for a further nine months, speaking after he met his Iraqi counterpart in Baghdad.
Ahead of OPEC’s May 25 meeting, the U.S. Energy Information Administration noted the hole that the oil price downturn has opened in member nations’ pockets.
The Netherlands is set to receive its first LNG delivery from Cheniere Energy's Sabine Pass export plant in the U.S., according to shipping data.
OPEC and other oil producers are on course to agree on an extension of supply cuts at a meeting on May 25, with Saudi Arabia saying most participants are on board with the plan to rein in a global supply glut.
One source said a deeper cut in output was an option depending on estimated growth in supply from non-OPEC producers, mainly U.S. shale oil firms, among other scenarios.