Nigeria suffers biggest oil output decline in OPEC

Nigeria suffers biggest oil output decline in OPEC

Production cuts by Opec have led to global oil prices hitting a four-year high last month that forced a Rs 3.8 per litre hike in petrol and Rs 3.38 a litre increase in diesel prices.

U.S. President Donald Trump renewed his attack on OPEC on Wednesday, and the International Energy Agency said the world may face a supply gap by late 2019 if OPEC can not cover any shortfalls. Russia's production was 11.1 million barrels a day at the beginning of June, exceeding its quota, according to sources familiar with the matter.

Speaking to reporters after a meeting with Russia's Energy Minister Alexander Novak, the minister of OPEC's biggest producer Saudi Arabia, said, "I think it's inevitable".

The ideas, discussed informally among ministers and delegates ahead of next week's meeting in Vienna, comes as Riyadh tries to rally support for a production increase in the face of staunch opposition from Iran, Venezuela and Iraq, and pressure from Washington, the same people said, asking not to be named discussing private conversations.

OPEC and non-OPEC producers including Russian Federation are continuing with a deal to curb their supply, but the strategy is seen to have been effective with Brent and West Texas Intermediate (WTI) now trading around $75 and $66, respectively.

With demand for oil strong, Morgan Stanley said the group's "production is likely to creep higher". US light crude was up 10 cents at $66.46 a barrel.

Oil prices steadied on Thursday, but were likely to remain under pressure from evidence of rising US output and uncertainty over the outlook for supply before a key meeting next week of the world's largest exporters.

Oil ministry officials also said that with firm oil prices, a rising import bill, $450 billion of external debt, including oil-related debt, govternment's hands are tied and there is no scope for fuel price reduction.

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On the sidelines of the opening match of the World Cup on Thursday, President Vladimir Putin and Saudi Crown Prince Mohammad bin Salman will meet to discuss oil policy, Bloomberg added. So far, India has not been able to bargain better rates from the Gulf-based producers of the oil cartel, OPEC.

This will help push non-OPEC oil supply growth to 2 mb/d in the second half of the year, OPEC said.

"Iran has already signaled that it will resist any such attempts and blames the USA for the price rise".

US crude inventories fell by 4.1 million barrels, to 432.4 million barrels.

Brent crude futures LCOc1, the worldwide benchmark for oil prices, were at $75.65 per barrel at 0329 GMT, down 23 cents, or 0.3 percent, from their last close.

Prices, however, were already rising on growing demand and expectations that a sharp pullback in new investment by oil companies would reduce the oil supply.

Trump drew lots of tweeted responses, including one from oil hedge fund founder Pierre Andurand, who expects prices will be above $150 a barrel in less than two years.

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