In the week since our last edition of What’s Affecting Oil Prices, Brent prices averaged around $63.68/bbl last week, within the expected range.
Israeli Energy Minister Yuval Steinitz called it the most significant export deal with Egypt since the neighbors signed their historic peace treaty in 1979.
Recent windfalls generated through taxes and the kingdom’s “anti-corruption purge” has triggered further speculation about the future of Saudi Aramco’s IPO.
OPEC Secretary-General Mohammad Barkindo said compliance last year stood at 107% and that OPEC and non-OPEC producers would hold a technical meeting in June.
Also supporting oil prices was a statement from the UAE energy minister late on Feb. 15 saying oil producers led by Saudi Arabia and Russia aimed to draft an agreement on a long-term alliance by year-end.
State Department nominee advocates other ways to decrease Europe’s dependence on Russian gas.
Reduced volumes of oil in storage indicate that production restraint by OPEC, Russia is effective.
At the recent NAPE Global Business Conference, panelists from Hess and Akin Gump gave insight on what plays into developing resources in the Lower 48 or international deepwater.
"We are looking at the situation as a whole [and] see that the stockpiles have been shrinking anyway," Russia's Alexander Novack said adding that the U.S. shale oil increase doesn't cover both the demand rise and production decrease.
The IEA said oil prices, which briefly touched a high of $71/bbl in January, could be supported even if U.S. production rises, provided global growth remains strong, or if unplanned supply outages persist.