Oil touches multi-week highs as OPEC signals may extend cuts
May 22 2019
Iranian Foreign Minister Mohammad Javad Zarif has dismissed the possibility of war breaking out in the region amid rising tensions with the USA, saying that Tehran doesn't want a conflict and no country had the "idea or illusion that it can confront Iran".
"I would say to the Iranians, do not underestimate the resolve on the United States side in the situation", British foreign minister Jeremy Hunt told reporters on Monday in Geneva.
"It is critical that we don't make hasty decisions - given the conflicting data, the complexity involved, and the evolving situation", Falih said, describing the outlook as "quite foggy" due in part to a U.S. "We have to be cautious".
The Organization of the Petroleum Exporting Countries (OPEC), Russia and other non-OPEC producers, known as OPEC+, agreed to reduce output by 1.2 million barrels per day (bpd) from January 1 for six months, a deal created to stop inventories building up and weakening prices. The deal was created to stop inventories building up and weakening prices.
When asked if the deal needs to be extended beyond June, Kachikwu said: "I'm hoping so", adding that "I'm not so much anxious about wars".
Saudi Arabia and other key producers in OPEC signaled their intention to keep oil supplies constrained for the rest of the year, while pledging to prevent any genuine shortages.
The meeting "affirmed its commitment to achieving a balanced market and working towards oil market stability", said a statement issued at the end of the gathering.
On Sunday, Alexander Novak, Russia's energy minister, said ministers had recommended continued monitoring of the market due to current uncertainties and that full recommendations would be made at the OPEC meeting next month.
Riyadh, while emphasising that it does not want a war, has accused Tehran of ordering Tuesday's drone strikes on two oil pumping stations in the kingdom, claimed by Yemen's Iran-aligned Houthi group.
His comments came after he was briefed on tensions with Tehran by U.S. National Security Advisor John Bolton, a well-known hawk who had been in favor of an attack on Iran even before he took his role in the Trump administration.
Meanwhile, Iran's foreign minister Mohammed Javad Zarif said on Saturday the Islamic Republic is "not seeking war" at the end of his trip to China. Investors had been growing nervous that OPEC could look to remove the production limits at its next meeting in June, in light of tightening global supply and elevated prices, ' Jasper Lawler, head of research at London Capital Group, said in a note to investors.
In its meeting last week the JMMC indicated the readiness to rollover ongoing production cuts well into the second half of the year.
Both attacks targeted routes built as alternatives to the Strait of Hormuz, the conduit for nearly all Gulf exports.
"The two powerful countervailing forces in the market right now are the Iran tensions versus the deteriorating U.S".
Qassem Suleimani, leader of Iran's Quds force, summoned its regional allies, triggering fears in the United States of all-out war threats from the Middle East.