ESAI expects oil price lift in 2H2017

Baku, Azerbaijan, Dec.2

By Leman Zeynalova – Trend:

In terms of market impact, OPEC Vienna deal at first glance, is impressive since it has the potential to remove a significant volume of crude oil from the market, according to the analysts of the Energy Security Analysis (ESAI), US-based global energy consulting company.

During the Vienna meeting held Nov.30, OPEC members decided to implement a new OPEC-14 production target of 32.5mb/d, said the cartel’s website.

The decision was made in order to accelerate the ongoing drawdown of the stock overhang and bring the oil market rebalancing forward.

The agreement will be effective from January 1, 2017.

“However, against this reduction in output, one must consider gains in Libya and Nigeria, which ESAI Energy estimates could increase by a combined 550,000 b/d between November and the end of the first quarter of 2017,” said the analysis obtained by Trend. “This cuts the utility of this agreement down to about 600,000 b/d.”

Given the production cut outlined above and gains in Nigerian and Libyan output, ESAI Energy estimates OPEC production will average 32.4 million b/d in the first half of 2017. Thus, the first half of 2017 will not technically fall into deficit, according to the analysis.

“By the third quarter, all other things held equal, a renewal of the agreement would clearly lead to a supply/demand deficit,” said the analysis. “This will certainly lift crude oil prices in the second half of 2017, and it will encourage higher prices in the interim, especially if these promises all come to pass.”

According to ESAI Energy estimates, the global oil demand 93.9 million b/d in 2016 and 95.2 million b/d in 2017.

Subscribe to Trend in Google News! Subscribe
Novak does not rule out recurrence of energy crisis in Europe, urges its prevention
Novak does not rule out recurrence of energy crisis in Europe, urges its prevention
UK MP killing was terrorist incident, Met Police say
UK MP killing was terrorist incident, Met Police say
Czech Republic eyes to support improvement of Georgian air transport infrastructure
Czech Republic eyes to support improvement of Georgian air transport infrastructure
Loading Bars
Latest
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,896 more COVID-19 cases, 764 recoveries
Azerbaijani president, first lady meet with members of Fuzuli district's general public
Azerbaijani president, first lady view conditions created in Fuzuli Central City Park, plant trees there
President Aliyev lays foundation for Digital Substation Management Center in Fuzuli
President Ilham Aliyev lays foundation stone for Fuzuli Memorial Complex, city of Fuzuli
Liberation of Fuzuli during Second Karabakh war was of great importance - President Ilham Aliyev
October 17 will forever have special place in history - President Ilham Aliyev
President Aliyev lays foundation stones for Fuzuli-Aghdam highway and new “smart village” in Fuzuli
President Ilham Aliyev and First Lady Mehriban Aliyeva visit Fuzuli district
Ukrainian MPs visit Ganja where cilivians died as result of missile attacks by Armenia (PHOTOS)
Iran reveals COVID-19 data for October 17
BSEC SG to visit Georgia today
Over 600 COVID-19 patients in Kazakhstan in critical condition
Energy Community highlights leading energy projects implemented in Georgia
First concert of Azerbaijan's trio under leadership Isfar Sarabsky takes place as part of European tour (PHOTO/VIDEO)
Buy/sell operations at Iran Mercantile Exchange soar
Graduation ceremony of Azerbaijani servicemen participating in courses held in Turkey
Heavy rains lash India's Kerala, red alert sounded in 5 districts
Share of households with internet access increases in Georgia
Seventeen U.S. missionaries and family kidnapped in Haiti
Iranian private investments in Tajikistan expected to grow
1,900 new COVID-19 cases reported in Kazakhstan
IRICA unveils data on exports of Iran to Belarus
Azerbaijan national team takes second place at Grand Slam judo tournament
8 killed, over 20 injured in traffic accident in Peru
1 deputy killed, 2 injured in "ambush shooting" in U.S. Texas
Israel's active COVID-19 cases below 20,000
At least 6 dead, 1 missing after ship sinks in Brazil
Azerbaijani Foreign Ministry shares publication in connection with anniversary of Armenia's missile attack on Ganja
Information about firing of Azerbaijani army in direction of Arazdeyen does not reflect truth - Ministry of Defense
Sudan protest calls for military coup as political crisis deepens
Chronicles of Victory: President Ilham Aliyev addresses the nation on October 17, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 17, 2020
District Election Commissions to sum up protocols of municipal polls in Georgia
A working meeting of the delegations of Uzbekistan and Afghanistan takes place
Russian authorities say 18 dead in suspected alcohol poisoning in Yekaterinburg
UN chief welcomes unilateral cease-fire in CAR
Iran’s Bahar Azadi gold coin price continues to rise
Work on increasing wages, pensions and benefits begins - Ministry of Finance of Azerbaijan
Official talks reasons for increase in gas prices in Azerbaijan
Post-conflict reconstruction projects launched by President Ilham Aliyev is unprecedented - Aide to President (VIDEO)
Azerbaijani IDEA signs agreement with All-Russian Society for Nature Conservation (PHOTO)
Saudi Arabia's PIF launches offshore platform tourism project
NATO Special Representative for Caucasus to visit Azerbaijan
Iran's Energy Exchange announces products to be on sale on October 17
Iran reaches grow in exports to Kyrgyzstan
World gas prices grow by 20-30 times compared to last year - SOCAR
Latvia to gift Georgia 83,070 doses of Pfizer jab
Earthquake hits southern Iran
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,681 more COVID-19 cases, 675 recoveries
South Caucasus countries need to coordinate to open communications - Pakistani diplomat
Azerbaijani President Ilham Aliyev signs decree on raising social payments
Iran reveals COVID-19 data for October 16
Uzbekistan to privatize public park in Tashkent
Muslims all together sympathetic with Azerbaijan - Palestinian ambassador
Iran's exports to Kazakhstan up
SOCAR Georgia Gas opens tender on pickup trucks through operating lease
Turkish president and German chancellor holding talks in Istanbul
Novak does not rule out recurrence of energy crisis in Europe, urges its prevention
Azerbaijani official talks victims of Armenian attacks on Tartar during Second Karabakh War
Centuries needed to revive nature of Azerbaijan's Karabakh - minister
Azerbaijan raises electricity and gas prices
Restoration work in Azerbaijan’s liberated territories show positive trend – Kyrgyz ambassador
Over past 25-30 years, no country independently conducted such large-scale reconstruction in post-conflict period - aide to Azerbaijani president
Armenia must take serious and positive steps to open communications - Azerbaijani president's assistant (Exclusive)
Azerbaijan looks to sign document on demining liberated territories with France
Azerbaijan's Air Defense Units carrying out combat firing exercises (VIDEO)
Azerbaijan's Karabakh to be famous for its "smart cities" and agricultural products - Turkish ambassador
Iran boosts exports to Russia
Russia registers over 1,000 coronavirus deaths in 24 hours first since pandemic starts
Kazakh energy minister names reasons for shutdown of Pavlodar refinery
Iran sees increase in trade turnover with EAEU member states
Representatives of diplomatic corps view restoration work in liberated territories of Azerbaijan (PHOTO)
First plane with UN humanitarian aid for Afghanistan arrives in Uzbekistan
Iran records increase in load/unload operations in Amirabad port
Georgia and US to discuss co-op in Black Sea
Fuzuli Airport Granted International Status and Assigned IATA Code
Uzbekistan to fund startups in various sectors
U.S. lawmaker blames Boeing leaders for culture that led to crashes
Turkmenistan to purchase agricultural machinery from foreign manufacturers
Iran Energy Exchange shares data on sales of Iran’s Jam Petrochemical Company
Azerbaijan names gymnasts to perform at World Championships in Japan
During former occupation of Sugovushan, Armenia deprived vast lands of water - aide to Azerbaijani president (PHOTO)
Volume of loaded and unloaded cargo in Iran’s Noshahr Port down
Georgia shares data on COVID-19 cases for October 16
Kazakhstan boosts trade with Turkmenistan over 8M2021
Exports of steel manufacturers in Iran increase
Georgia, EU, and Turkey enter into "diagonal cumulation" agreement
Azerbaijani sees increase in oil prices
Iran raises ceiling on housing loans
Uzbekistan’s FEZ creates good basis for deepening co-op with Azerbaijan
Turkmenistan’s private enterprise eyes building dry cargo vessel
Trade turnover between Russia, US may hit record this year, says Deputy PM Overchuk
Iran to launch several shipping lines to Russia, Kazakhstan
Iran looks to improve transportation of goods from Khuzestan Province
Russia’s Korona Pay eyes expanding money transfers via Azerbaijan's mobile banking apps
Gas prices in Europe to remain high over next 6 months
Iranian currency rates for October 16
All news