Saudis, Russia to Talk Output Boost Ahead of OPEC Summit

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The trading unit of China's biggest refiner has cut supplies from OPEC's biggest producer in recent months, citing costly oil pricing by the Middle East nation.

For 2019, IEA's estimate of demand anticipates growth of 1.4 million barrels of oil per day, amid a boost from the petrochemicals sector, where some projects are coming on stream earlier than previously thought.

Trump's grousing follows reports suggesting the oil exporters group was already planning to open the spigots, an outcome the International Energy Agency hinted at in its monthly report released earlier Wednesday.

Production cuts by OPEC have led to global oil prices hitting a four-year high last month that forced a Rs. 3.8 per litre raise in petrol and Rs. 3.38 a litre increase in diesel prices.

"To make up for the losses, we estimate that Middle East OPEC countries could increase production in fairly short order by about 1.1 mb/d and there could be more output from Russian Federation on top of the increase already built into our 2019 non-OPEC supply numbers", it added.

While Venezuela is a member of OPEC, "the disaster in Venezuela, which has created a hole in the market, is not the fault of OPEC", said Daniel Yergin, the vice chairman of research firm IHS Markit and author of several books on the energy industry.

On the discussion table was de-bottlenecking infrastructure to facilitate more US crude oil coming to Asia so as to cut the dominance of the Organization of the Petroleum Exporting Countries (OPEC), which supplies about 60% of India's oil needs.

The IEA meanwhile warned that whatever the outcome of the meeting, "the market will be finely balanced next year, and vulnerable to prices rising higher in the event of further disruption".

OPEC and non-OPEC producers struck a deal in late 2016 to trim production by 1.8 million barrels per day to reduce a global glut that had sent prices crashing. Key producers, including Saudi Arabia and Russian Federation, have reaffirmed the deal since then.

Trump's tweet - similar to one he wrote in April, blaming OPEC for "artificially Very High" oil prices - came a week before a much-anticipated OPEC meeting in Vienna and may have been created to influence the discussion.

"It's confusing why the president would come out with a statement like this now", Smith said.

Charles Schumer, the leader of Senate Democrats, recently linked $3-plus gasoline to Trump's decision to revive sanctions on Iran.

Crude stockpiles fell by 4.1 million, and gasoline supplies fell by 2.3 million barrels, the Energy Information Administration said. OPEC reported in its monthly oil market report Tuesday, that Saudi Arabia has already increased production.

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