- OPEC is concerned by the drop in oil prices—trading near multi-year lows—and is ready to talk to other producers, an article in an OPEC publication issued on Monday said.
“Today’s continuing pressure on prices, brought about by higher crude production, coupled with market speculation, remains a cause for concern for OPEC and its members—indeed for all stakeholders in the industry,” the commentary in the latest OPEC Bulletin said.
- The Organization of the Petroleum Exporting Countries renewed its openness for dialogue with other producers. OPEC has refused to cut its own output without help from outside producers such as Russia, which have also declined to lower supply.
“OPEC, as always, will continue to do all in its power to create the right enabling environment for the oil market to achieve equilibrium with fair and reasonable prices.”
“As the Organization has stressed on numerous occasions, it stands ready to talk to all other producers. But this has to be on a level playing field. OPEC will protect its own interests.”
- Brent and U.S. crude futures turned higher, after its biggest two-day rally in six years last week, pressured by a supply glut and renewed concern about a hard landing for China’s economy.
- International benchmark Brent crude climbed 10 percent last week but was still heading for its fourth straight monthly decline and has risen in only two of the past 14 months.
“Volatility was high last week, so now we’re seeing some retracement—$50 is proving to be a resistance level,” said Olivier Jakob, analyst at Petromatrix, referring to Brent. “It is still a market which is very well supplied.”
- Volume is expected to be lower than normal on Monday because of a British public holiday.
- Separately, Russian President Vladimir Putin and his Venezuelan counterpart Nicolas Maduro will discuss “possible mutual steps” to stabilize global oil prices during a visit to China this week, a Kremlin aide said on Monday.
- Putin and Maduro will attend a military parade in Beijing marking 70 years since the end of World War Two in Asia.
- Russia, one of the world’s leading oil producers, is not a member of OPEC. Moscow and the cartel have so far refrained from trying to prop up production by cutting prices.