OIl prices are up as Iran softens stance and OPEC says the world could face a supply deficit of up to 1.8 million bpd in the second half of 2018. Leaders say they want to avoid a shortage as seen in 2007-2008 with oil close to $150 per barrel. WTI Crude is $66.37; Brent is $74.08 this morning.
OPEC says a production rise of about 1 million barrels per day (bpd) is emerging as a consensus for the group and its allies. Russia has proposed a rise of 1.5 million bpd, and Saudis say the world needs an extra 1 million bpd to avoid a shortage in the second half of 2018. WTI Crude is $64.73; Brent is $73.50 this morning.
OPEC meets on Friday to decide output policy amid calls from the United States and China to cool down oil prices and support the global economy by producing more crude. Views differ on whether to increase production or maintain the existing deal to keep cuts until the end of 2018. WTI Crude is $65.10; Brent is $74.92 this morning.
Saudi Arabia and its Gulf allies have the capacity to raise output. Russia has also said that limiting supply for too long could encourage unacceptably high output growth from the United States. WTI Crude is $64.85; Brent is $74.81 this morning.
Concerns over higher OPEC production has lowered oil prices over the past three weeks analysts say. But the oil market remains in deficit ... requiring higher OPEC and Russian production to avoid a supply shortage by year-end. WTI Crude is $64.82; Brent is $74.11 this morning.
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