Saudi Arabia’s Energy Minister, Khalid Al-Falih, has said that member countries of the Organisation of Petroleum Exporting Countries (OPEC) and its allies led by Russia still have a lot of work to do to balance global oil markets, and are prepared to do what is necessary in this regards in the second half of 2019.
According to Bloomberg, Al-Falih, said yesterday at a news conference in Baku, Azerbaijan where a committee of OPEC and its allies responsible for monitoring output are due to meet today, that the group needs to “stay the course” until June as its job is nowhere near complete in terms of restoring oil-market fundamentals.
Al-Falih’s disclosure of the group’s commitment also came at a time the Nigerian National Petroleum Corporation (NNPC) reported that it made a trading profit of N12.13 billion from its operations in December 2018.
Bloomberg reported that U.S. inventories have remained significantly above normal levels, and that there was a risk of oversupply in the short term.
Accordingly, OPEC and its allies have entered their third year of curbing supply in order to defend crude prices. The Bloomberg quoted Russian energy minister, Alexander Novak, to have indicated that Russia equally plans to achieve its promised cuts in output by the end of March or early April, adding that it needs time to make its promised cuts due to harsh weather.