OPEC won’t react to small, short-lived oil supply disruptions

9 Jan 2018   OPEC

OPEC is monitoring unrest in Iran as well as Venezuela’s economic crisis, but the group will only boost output if there are significant and sustained production disruptions from those countries, a senior OPEC source from a major Middle Eastern oil producer said. Venezuela’s economic troubles have hit the country’s oil output, which is at near 30-year lows, but Iran’s output has not been affected by a wave of anti-government protests. Traders said political tensions in Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), had pushed prices higher. Brent crude LCOc1, the international benchmark, was trading at around $67.52 a barrel, on Monday. Brent hit $68.27 high last week, the highest since May 2015, on Iran tensions. Saudi Arabia, OPEC’s de-facto leader, wants to see oil prices above $60 a barrel, to boost the valuation of its national oil company Aramco ahead […]

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