Oil Prices Rise After Al-Faheeh Comments On Production

Oil prices rose during early European trading on Wednesday as investor enthusiasm rose after a number of positive data from the decline of oil stores and statements by Khalid al-Faleh.

Al-Falih: to continue moderate oil production in the second half of 2019

Saudi Energy Minister Khalid al-Falih said on Wednesday that the Organization of Petroleum Exporting Countries (OPEC) and other major oil producers need to continue adjusting crude oil production in the second half of this year to stabilize the oil market. "It's hard to predict where we are in June when the interim agreement ends," he said in an interview with CNBC.

Falih stressed that uncertainty about production in Libya and Venezuela creates potential risks in the oil market. He also noted that transparency in the oil market was "not yet perfect" because of the lack of relevant data. Commenting on whether OPEC would decide to extend the cut-off period, the minister said the two main oil exporters were "flexible" and "inclined to the possibility of extension."

The Saudi official stressed that the main priority of OPEC is the global economy and ensure the stability of the market. He also praised the organization's efforts to rebalance the market, noting that "these actions have also benefited non-OPEC producers," describing them as "the best thing to perfection." "Producers want to avoid accumulation of stocks because that will probably lead to higher oil prices and a global recession," he said.

US oil inventories fell 4.2 million barrels in the week ending Feb. 22, while analysts' forecasts showed a 3.5 million barrel increase. Markets are eyeing the release of today's EIA report on official volumes of US crude inventories.

Oil futures trading

  • West Texas Intermediate crude futures for April delivery rose 0.90% to $ 56.00 a barrel.
  • Brent crude rose 0.66% to $ 65.64 a barrel at 8:20 am.

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