OPEC agreement is still alive
Yesterday in St. Petersburg, the meeting of the monitoring committee of the OPEC countries took place. This event was expected and became central for the oil market and during the day had an impact on the price.
At the final press conference, the Saudi Energy Minister said that over the past 6 months, the level of compliance with the agreement to cut oil production was around 98%. The Monitoring Committee recommended, if necessary, to extend the deal to reduce production after the first quarter of 2018, according to a press release following the meeting of the committee.
According to the Minister of Energy of the Russia Novak, it is premature to make a decision on a specific exit mechanism in the future from the OPEC agreement. In addition, according to Novak, over the six month period of this agreement, surpluses of oil in the market have decreased by a quarter. At the same time, he believes that Libya and Nigeria, exempted from the obligation to reduce production under the agreement with OPEC , should in the future join the deal after achieving stable levels of oil production in these countries.
Meanwhile, representatives of Nigeria promised that if production in the country reaches 1.8 million barrels per day, then their country will stop increasing it, limiting it to this level. Oil production in Nigeria in June was 1.733 million b / s. Libya, in turn, will continue to increase production without any conditional goals.
The reaction of the oil market to all events was predominantly positive. Brent futures added over 1%. However, the overall technical picture has not changed significantly. Brent oil is still in the sideway channel. The level of $ 46 46,6 are support zone. Next resistance is located around $ 43.5. Round level of $ 50 per barrel is the closest resistance.