For about three weeks ahead of the Opec meeting, prices had retreated from 3-1/2-year highs on fears that larger production increases could lead to oversupply.
USA stocks are closing higher Friday as oil prices and energy companies rallied. "It would not make sense if we allocated production to a country that can not produce it, so we avoided having allocations from that perspective", he said.
Al-Falih went out of his way to give a detailed explanation of how the so-called OPEC+ deal will work, clarifying a vaguely worded agreement and contradictory statements from other ministers that spurred a rally in crude futures on Friday.
There are also growing signs that the renewed United States sanctions on Iran could have a larger effect than a 1 million barrel per day reduction in exports seen in 2012.More news: Switzerland's late victor over Serbia throws World Cup's Group E wide open
Reaffirming the continued commitment of the participating producing countries in the "Declaration of Cooperation" (DOC) to a stable market, the mutual interest of producing nations, the efficient, economic, and secure supply to consumers, and a fair return on invested capital, and noting the overall improvement in market conditions and sentiment, and the return of confidence and investment to the oil industry.
"I hope that today in the meeting with our friends in non-OPEC we as will reach the same conclusion" on a production increase, Emirati Minister of Energy Suhail al-Mazroui told reporters.
Moscow had long argued for a hike, feeling the pressure from domestic oil companies eager to produce more so they can cash in on the higher prices.
President Trump, however, is much more of a wild card, and could voice his support for the bill especially if oil prices continue to top to the $80 levels.
The logo of the Organization of the Petroleum Exporting Countries (OPEC) is seen at OPEC's headquarters in Vienna, Austria June 19, 2018. But there was not almost enough clarity for markets as to how many more barrels would be released and where they would come from, with Brent crude surging 3 percent after the announcement leaked out.More news: States can now force you to pay online sales tax
The intervention turned counterproductive, enraging other members of the group, exacerbating the schism between Saudi Arabia and Iran and making the possibility of any reconciliation between the two still dimmer.
"Need to keep prices down!" he tweeted. While in theory that could mean extra output of 1mn bpd, in practice the figure could be lower - 600,000 bpd to 800,000 bpd - as some producers are unable to pump more. Output among the 24 nations has actually fallen by about 2.8 million bpd, due largely to cratering production in Venezuela and supply disruptions elsewhere. Saudi Arabia and Russian Federation said they were happy to pump more but Iran had criticized the idea as it faces export-crippling USA sanctions. Instead the producers are seeking to cut no deeper than 1.2 million bpd, the target they set in November 2016.
Crude prices surged yesterday following the vaguely worded Opec agreement.
Asked whether he thought the 14 OPEC ministers gathering in Vienna would reach a unanimous agreement on whether and how to amend the landmark deal, Iraqi Oil Minister Jabbar al-Luaibi replied: "No".
Perry will meet Novak on Tuesday, in the context of the World Gas Conference that is being held in Washington, the source said.More news: European Union tariffs target United States goods from motorbikes to jeans
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