Spot Cargo Markets - Output Boost

摘要

Globally traded Brent crude oil fell as output heavyweights Saudi Arabia and Russia seemingly agreed a deal to boost oil production, while US domestic West Texas Intermediate (WTI) continued to see gains. After meeting with his Russian counterpart in Moscow on Thursday, Saudi Energy Minister Khalid al-Falih said an agreement to increase production was 'inevitable.' Al-Falih added, 'I think it will be a reasonable and moderate agreement ... It’s not going to be anything outlandish.' The two countries are the most critical participants in a 1.8 million barrel per day supply cut deal in place since the beginning of 2017. While they avoided a fixed position on the volume and timing of the production increase, they appear to be supportive of starting with an additional 300,000 b/d increment. Russian Energy Minister Alexander Novak mentioned 1.5 million b/d as a new production ceiling that could be considered at a meeting of Opec and non-Opec participants in Vienna Jun. 22-23. He said incremental volumes could start returning from Jul. 1. International benchmark Brent closed at $75.94 per barrel Thursday, down $1.38/bbl on the week, while US price-pin WTI settled at $66.89/bbl, for a gain of 97￠/bbl. Brent hit a 3(1/2)-year high against WTI in May, but the spread has steadily narrowed since on hopes of rising supply.