UAE is ready to help alleviate any supply shortage in crude..
"As Libyan port closures remove about three-quarters of their 1 million barrel-per-day exports, crude is pushing higher again today", he said.
As oil prices continue to fall, the American Petroleum Institute (API) reported another major draw of 4.5 million barrels of United States crude oil inventories for the week ending June 29 - compared to analyst expectations that this week would see a draw of 3.267 million barrels. Crude stockpiles at oil storage facilities in Cushing have dropped after an outage at Syncrude Canada's 360,000 barrels per day (bpd) oil sands facility near Fort McMurray, Alberta. "The Ministers agreed to ask the Joint Technical Committee to develop appropriate procedures and take it to the Monitoring Committee", the Ministry said.
OPEC together with a group of non-OPEC producers led by Russian Federation started to withhold output in 2017 to prop up prices.
Oil prices climbed on Tuesday after Libya declared force majeure on some of its supplies, although an overall rise in OPEC output and an emerging slowdown in demand held back markets.
"It is a positive move for the local economy".
Oil prices have been buoyed by tightening supplies this year but there are signs demand may now be easing.
Geoffrey Craig, the oil futures editor at Platts, said the drain on USA inventory levels is in part because of higher domestic exports, which set a record for the week ending June 22 at 3 million barrels per day. This reflects how petroleum dependence remains a national and economic security threat despite US crude oil production more than doubling in the past decade and reaching a new record this year.
Oddly, oil prices did not spike at the start of trading on Monday, which suggests oil traders clearly didn't entirely dismiss President Trump's bold claim that OPEC would add 2 mb/d.
Oil prices have gained over three per cent since Opec and allies announced on June 22 to raise output to meet production caps set in 2016.
"Oil bulls seem to have returned after Libya suspended oil exports from two key ports", said Hussein Sayed, chief market strategist at futures brokerage FXTM.
After reducing production by more than 1.8 million barrels daily since January past year to drain a global glut, the producers decided in Vienna on June 23 to reverse course.
That means US sanctions will soon be re-imposed on Iranian exports, which could keep as much as half of the country's oil in the ground. And Trump himself could be responsible for disrupting around 1 mb/d - or more - of Iranian supply. China has ranked first with 600,000 barrels per day, followed by India with 450,000 barrels per day and South Korea with 250,000 barrels per day, followed by Turkey with 200,000 barrels per day. "If supply doesn't rise, we expect Brent prices to touch $85 by year end as markets will be in a deficit", Valecha said.