Adding to troubling revelations such as Libya contributing almost triple the volume of crude to global markets compared with previous year is that Nigeria has over 60 million barrels of unsold crude, according to traders of its oil.
At 10:30 AM EST on June 14, 2017, the EIA (U.S. Energy Information Administration) will release its weekly crude oil inventory report for the week ending June 9, 2017.
As part of the meeting, Novak, Khalid Falih and Kanat Bozumbayev reiterated their commitment to the oil production cuts deal of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC states.
The Organization of Petroleum Exporting Countries and other crude producers including Russian Federation agreed on May 25 to extend the supply deal, which they reached a year ago, until the end of the first quarter of 2018. "The bottom line is that if OPEC are going to successfully defend price, they need to be doing more than they are doing today".
"I am convinced that the overall trend for the market is that of rebalancing", he added.
Optimism dominated during the session with WTI moving above $46.50 p/b ahead of the United States open with Brent trading just above the $49.0 p/b level. "It's a bit premature to call for much higher oil prices".
The EIA says U.S. crude production is forecast at 10.01 million barrels a day for 2018, up 0.4% from the previous outlook.
Qatar is OPEC's member, it participates in the production cut agreement.
Traders also noted the price rise came as data showed speculative traders had increased their investment in crude futures by taking on large volumes of long positions. The profile of these shale producers, which are privately owned and economically driven in their decision to adjust their oil supply, offers a good predictability, but also constitutes a permanent threat to incumbent producers, thanks to their ability to adjust their production nearly instantly to market prices.
While financial traders have confidence in rising prices, the physical market remains under pressure, especially due to a rise in USA drilling.