Oil producers seek further output cuts at Russian Federation meeting

Opec and other non Opec producers due to meet in the Russian city of Saint Petersburg on Monday

Opec and other non Opec producers due to meet in the Russian city of Saint Petersburg on Monday

Oil rose more than 1 per cent, after leading OPEC producer Saudi Arabia pledged to cut exports in August to help reduce the global crude glut, and Halliburton's executive chairman said the USA shale drilling boom would probably ease next year.

On the New York Mercantile Exchange crude futures for August delivery rose 1.3% to settle at $46.34 a barrel, while on London's Intercontinental Exchange, Brent added 1.21% to trade at $48.64 a barrel. Frack crews are also getting harder to find, making it harder and more expensive to complete wells that will eventually lead to lower production per shale well.

President Muhammadu Buhari presented the 2017 Appropriation Bill to the National Assembly on December 14, 2016, with projected oil revenue at N1.99 trillion, on price benchmark of 42.5 dollars per barrel. Unfortunately for OPEC-who appears to be in a bit of a pickle-while the lower prices may slow the run on U.S. shale, as long as prices stay low, OPEC's many oil-dependent economies will continue to suffer budget holes, and Saudi Arabia probably can not afford an Aramco Valuation with lower oil prices.

The Organization of Petroleum Exporting Countries and its partners, including Russian Federation, agreed late previous year to cut output by as much as 1.8 MMbpd to drain bloated global stockpiles.

The committee's statement made little reference to Libyan production gains, but said Nigeria would be willing to cap production as soon as it reached 1.8 million barrels per day. We are turning a corner in the oil market and despite insane moves, we should start to move much higher.

Saudi Arabia, the world's top oil exporter, announced it would go further than cutting its production and would also limit its exports at 6.6 million barrels a day.

OPEC sources told Reuters on Saturday that Nigeria could cap output if it managed to sustain production at 1.8 million bpd for 90 days.

Mr. Falih's focus on exports was new.

In June and over the last six months, the agreement has been observed "98 percent", the participating countries said, with the result that total output has been cut by more than 350 million barrels of oil.

Elsewhere, the International Monetary Fund left its projection for global economic growth at 3.6 percent for this year, but said that forecast masks swings at the country level.

"We need to continue monitoring" the implementation of the cuts, said Alexander Novak, Russia's energy minister.

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