Saudi Arabia and Russia, the oil producers who have attempted to reduce global flooding, said they are debating the easing of production restrictions for the first time.
While supply constraints are declining, it's "on the table", no The decision was made, Saudi energy minister Khalid Al-Falih said in an interview early Friday morning in St. Petersburg. The Organization of Petroleum Exporting Countries and its partners will speak in June about easing the inhibition threshold that began in 2017, Russian counterpart Alexander Novak said after a meeting of the two officials in the same interview.
Speculation fluctuates when and how much Producers will cut back on cuts after they reduced a stock surplus that triggered a price drop some four years ago. Market uncertainty has risen as a result of renewed sanctions by the US against Iran, which could slow exports by the Islamic Republic, and while economic turmoil in Venezuela is causing OPEC members to collapse. The recovery in crude oil prices is also cause for concern that demand could dwindle.
Russia and Saudi Arabia share a common view on consumer concerns about alleged supply shortages, "Al-Falih said." We will keep the market on track to realignment, but at the same time we will not overcorrect. The two nations will meet at least two more times before OPEC and its partners gather in Vienna next month 19659002] While Saudi Arabia is showing the desire for higher prices to finance domestic economic reforms and the evaluation of its underpinning state oil company in a planned IPO, OPEC's top member and its allies are under pressure from consuming nations
Indian mineral oil minister Dharmendra Pradhan said earlier this month he expressed concern about rising crude oil prices and their impact on consumers towards al-Fali He added that the Saudi Energy Minister assured him that the Middle East nation and other producers would ensure that adequate supplies were available and that prices remained reasonable. In the developing countries from Brazil to the Philippines, motorists complain about high fuel costs.
In Russia, some of the largest oil producers demanded more flexibility after nearly 17 months of production restraint. The cuts have reached their target, and crude oil prices near $ 80 a barrel are high enough, according to the bosses of Lukoil PJSC and Gazprom Neft PJSC. Novak said he will hold discussions with the country's crude oil producers next week or next week to discuss the deal with OPEC.
"Earlier we said that we will observe the market situation, now we can say that we are going to issue a smooth rest of the issue to meet growing demand, Novak said in an interview on Friday. He added that he and Al-Falih were discussing prices and the market situation, including Venezuelan production and the risks associated with Iran.
The Saudi minister said he would meet Novak in Moscow on June 14, and adding the next meeting between the two is possible before that.
In Washington, Democrats use high gasoline prices that reach $ 3 a gallon for the first time since 2014 as a political tool and accuse the White House of not doing enough to shield consumers.  Recent gains came from US measures such as the resignation of President Donald Trump from a 2015 agreement between Iran and the world powers that had eased the sanctions against the Gulf State in return for curtailing its nuclear program. Earlier this month, Al-Falih and the Energy Minister of the United Arab Emirates, Suhail Al Mazrouei, said recent oil price changes had been fueled by geopolitics and global supply remained plentiful.
In addition, record production in the US is not part of the agreement between global producers to curb production, a key issue that complicates the strategy for OPEC and its allies.
Brent Crude, the benchmark for more than half of world oil, dropped 0.4 percent to $ 78.49 after a barrel at 7:31 in London. Earlier this month, prices hit $ 80 a barrel for the first time since November 2014. US West Texas Intermediate futures were $ 70.49 a barrel in New York.
"We will work closely together and monitor the market almost daily," said Al-Falih on Friday. "We will consult with other countries, and each of them has one vote and their votes are important to us."
( adds Novak comments on meetings with oil companies in the seventh paragraph. )