By Srinivas Chowdary Sunkara / petrobazaar.com / 27th March, 2017.
Crude Oil Prices were ticked down on Monday on doubts whether OPEC alliance will extend production cut agreement beyond June to counter global oil glut. U.S. Crude oil grade West Texas Intermediate (WTI) futures fell 83 cents, or 1.7 percent, to $47.14 while Brent was down 72 cents, or 1.4 percent at $50.08 by 9:33 a.m ET (1333GMT).
Will OPEC agreement be extended?
At the end of the week, Ministerial monitoring committee from OPEC and non - OPEC did pretty much in Kuwait meeting to extend the deal to curb global oil glut. Russia was less defensive and recommended other players to wait. OPEC and Non-OPEC countries agreed to trim the production to the tune of 1.2 million barrels and 600,000 barrels per day on Dec 10 th of last year. Saudi was a key player and responsible for 50 percent of pledged cuts. The deal was relatively successful in achieving a historical compliance rate of 94 percentage, which surprised the market to push the oil prices by around $10 amidst the bearish shale factor. Now the next step would be the OPEC secretariat and the joint technical committee to recommend to extend the agreement period beyond June to counter the oil glut in the global marke which would support oil prices to upwards.
keystone pipeline approval making a splash
Mr.john kilduff, again capital partner was projecting U.S.administration as energy friendly and more supportive for projects and pipelines. The key stone pipe line makes easy to move crude to gulf coast refiners and facilitate exports as well. He expected lot of oil of around 800 - 1000 barrels, a number equivalent to that of saudi's reduced quantity. Mr.Mark Yusko from Morgan Creek capital management estimated crude prices bet ween $40 - $50 range. He projected that crude prices will hover around $40 in the first half end and may reach $60 at the end of the year.