As we head into the weekend, oil companies, end users and practically anyone involved in the industry is wondering, what now? Reiterating a statement from a Russian energy ministry spokesperson on Wednesday: “There has been no date or place set for the speculative meeting, while an Iraqi oil official indicated that oil exporters plan to meet in Moscow on March 20 to discuss the output freeze. PVM and many other reports think differently.” Here is what PVM discussed earlier today: “A meeting on March 20 is now looking very much like wishful thinking and we are told that the next concrete step is for the Russian Energy Minister to meet his Iranian counterpart in Tehran on March 14. Perhaps there will be a breakthrough but it looks unlikely and the cynical will conclude that the Saudis and their allies have gone some way towards diverting the blame for non-cooperation on to Iran by creating production freeze conditions it was obvious they would never agree.” Some contradicting statements!
OPIS also had a statement regarding with crude this morning: “The resilience of crude oil has most proclaiming that the low for the season is in as prices are more than $12/bbl above those lows in WTI. The recovery for oil prices is continuing and the relationship with equities markets continues as US markets are pointing higher this morning.” Today crude is up yet again, $0.82 as of noon EST. Products are also up as diesel is showing + $.0100 and gas +.0050.
-Iran’s production has increased 220,000 bpd – less than their forecast 500,000 bpd but still an increase, which is about equal to the amount U.S. production has decreased from year-ago levels.
-There may have been builds on crude and on products over the last couple months, but keep in mind that the total OPEC production was down 90,000 bpd in February. Not necessarily from production, but output is off much more than Iran’s increase because of a pipeline bombing in Nigeria.