«AlEqtisadiah» from Riyadh
Oil prices rose yesterday to more than 2 per cent, after recording Brent crude standard of 62.88 dollars per barrel, up by 1.80 cents.
The price of US crude was $ 53.80 with an increase of 1.77 cents, or 3.46 percent.
According to "Reuters", oil prices gained support after a report from the Organization of the Petroleum Exporting Countries (OPEC) showed that the Organization's production fell sharply last month, which is raising concerns about an over-stretched deluge.
Analysts in the financial markets and the oil market who received support from a report published by The Wall Street Journal said that Washington is considering raising tariffs on Chinese imports in whole or in part.
OPEC yesterday published a list of oil production cuts by its members and other major producers for six months to June in an effort to boost confidence in the action to avoid a flood in 2019.
A Ministerial Committee called upon the Organization and States outside the Org. in the statement of the participating States to redouble their efforts in full and timely implementation.
The group of producers known as OPEC + agreed in December to return to production cuts for fear of falling prices and increasing supplies.
The group has pledged to cut production by 1.2 million bpd from January 1 in order to bear the "OPEC" share in the reduction of 800 thousand barrels per day.
The move towards the announcement of quotas reflects the producers' desire to increase the credibility of the agreement.
OPEC initially revealed few details on how it would work, which was prompting some sources to say, "the quotas will not be announced."
OPEC Secretary-General Mohamed Barkindo, who has been urging the publication of the list, said the oil sector could not afford another setback.
The statement said that the Committee called that the Joint Ministerial Oversight Committee will be examined the production cuts every month and confirmed that they will meet in Baku, Azerbaijan, on March 18.
In the first half of 2019, OPEC and its allies will cut oil production by 1.195 million bpd to 43.874 million bpd.
The OPEC + group will meet in full on April 17-18 in Vienna to decide whether to extend the deal beyond June.
On Wednesday, the International Energy Agency said, "The growth of US oil production coupled with the slowdown of the global economy that would put downward pressure on crude prices in 2019, which is a challenge to OPEC's determination to support the market by reducing supply."
It added, "Global refining capacity is expected to rise this year at the fastest recorded pace, which could boost productive stocks such as diesel, gasoline and ship fuel."
The Agency said in a monthly report that the capacity of refining oil will increase by 2.6 million barrels per day and demand for refined products that will rise by about 1.1 million barrels per day.
The Agency, which coordinates energy policies for industrialized nations, said it was not yet clear what this means to the profit margins that have fallen as the price of crude rose last year.
The Agency pointed out that Saudi Arabia has shown its intention to raise oil prices by reducing its production of crude, before the entry into force of a new agreement limiting production, while Russia raised its production to a record.
Global oil markets have seen fluctuations in recent months, the agency said in its latest monthly report, "The Saudis led the cut in production in December after prices fell more than a third in just two months."
"The recent renewal of major producers' commitment to reduce production and data shows that words have become actions," the Agency said.
The data showed that many OPEC member countries increased their production last month.
Russia increased its production of crude in December to a new record of close to 11.5 million barrels per day, as it is unclear when and how much it will cut.
On the other hand, US production rose significantly exceeded expectations last year, which increased supplies, while demand concerns emerged as the US-China trade dispute deteriorated in the second half of last year.
The Agency said that the United States increased production by 2.1 million bpd last year, which is the "highest ever record" of annual growth.
The surge in oil production in the United States has reshaped global energy policies, as the United States is no longer relied heavily on oil imports until it resumed exports.
The Agency believed, "The United States, which is already the largest supplier of liquids, will strengthen its leadership to become the number one producer in the world for crude oil in 2019."
The Agency kept its forecast of global oil growth in 2019 unchanged by an increase of 1.4 million barrels per day.
It is considering that "the impact of high oil prices in 2018 fades," which will help offset the slowdown in economic growth.
It spoke of indications that the rebalancing of the oil market will be gradual.
