If not action taken, the demand will outstrip demand
The Saudi Arabian energy minister is Anwar saying that while demand in the 2nd half of 2018 will be 2 million barrels per day more than the 1st half of the year.
He adds:
- if we took no action, the supply deficit in H2 could rise to unacceptable high figure of 1.7 million BPD
- expansion of shale oil will slow significantly over the next 2 years
The expectation for OPEC tomorrow has been tapered down to 500,000 to 600,000 BPD. Saudi Arabia, a key member, is pushing for more.
Meanwhile Russian energy Minister Novak says:
- Vienna OPEC, Non OPEC declaration is still positive for the will market
- Oil prices are acceptable now
- Any oil increase should be shared equally.
The price of crude oil is trading down $.06 or -0.8% at $65.66