The report, which was viewed by Namazun, said that this improvement came with the support of signs indicating a shortage of supplies, with Saudi Arabia leading the initiative in reducing production and in conjunction with a decrease in supplies. By Canada and Libya, as well as Iran and Venezuela.
He pointed out that the improvement in oil prices came with the support of shrinking supplies, with a number of global oil producers reducing production within the efforts of the Organization of Petroleum Exporting Countries to cut production within Vienna Agreement.
The report indicated that the compliance rate of the eleven OPEC member states (excluding Iran, Venezuela and Libya) reached 106% in February, as the total production decreased by 812 thousand barrels per day. .
At the same time, compliance rates from non-OPEC countries improved to 52% in February compared to 25% in January, in addition to Russia's recent confirmation of its intention to raise the compliance rate to 100. % Soon.
The report emphasized that the political turmoil in Venezuela, Libya and Iran also contributed to reducing the supply.
The report also highlighted US oil production, noting that recent statements were less optimistic. While US crude production continues at unprecedented levels in the past year, the number of oil drilling rigs has decreased for six consecutive weeks and by 7.8% in 2019.
The chief economist at the National Bank of Kuwait Group, His Excellency Shami, said: Our expectations indicate that oil prices will rise in the second and third quarters of the year 2019, as global demand will remain on Oil is unchanged, and the balance of supply / demand is supposed to turn to a deficit in the second and third quarters of this year.
Shami indicated that the possibility of not renewing the deadline to suspend the US sanctions on Iran for 180 days in early May will have a significant impact, which may lead to the reduction of a few hundreds of thousands of Global oil supply. However, experience has taught us that it is difficult to predict oil prices that may be subject to significant fluctuations as we have seen recently.
The chief economist of the National Bank of Kuwait Group added ...
