OPEC ignores US call, maintains current oil output level

A partially constructed gas refinery at the South Pars gas field is seen on the northern coast of Persian Gulf in Asalouyeh Iran

Benchmark Brent oil reached $80 a barrel this month, prompting Mr Trump to repeat his demands for Organisation of Petroleum Exporting Countries (OPEC) to take action to lower prices. Unless an agreement is reached to fill this supply gap, and US President Trump is vocal in calling for it to be filled, prices will continue to push higher with little in the way of resistance on the charts. The kingdom had "limited spare capacity" to compensate for the loss of Iranian supplies, he said.

"The market does not have the supply response for a potential disappearance of 2 million barrels a day in the fourth quarter", Jaeggi said in a speech at the S&P Global Platts Asia Pacific Petroleum Conference (APPEC) in Singapore.

The so-called "OPEC+" group, which includes the likes of Russia, Oman and Kazakhstan, met at the weekend to discuss a possible increase in crude output, but the upshot of the gathering was that the group was in no rush to do so.

"In my view, President Trump's statement is the biggest insult to the governments and nations of the United States" allies in the region.

Opec+ is the name given to the group of oil producers, including Russian Federation, that agreed to curtail output starting in 2017.

J.P. Morgan wrote in its latest market outlook "a spike to $90 per barrel is likely" in the coming months due to USA sanctions on Iranian oil exports, which have fallen dramatically in recent months as importers brace for the impending penalties.

For all these urgent supply pressures, the world's largest oil producers adopted a sit-back-and-wait approach at their meeting in the Algerian capital on Sunday.

"Our attention is shifting to 2019".

Oil prices slip as Trump calls on Opec to lower prices
OPEC's latest monthly report estimated a decline of 235,000 b/d in Iran's oil production in August, compared to May. Exxon Mobil Corp. (NYSE: XOM) traded up about 0.9% to $84.35, in a 52-week range of $72.16 to $89.30.

Mohammad Barkindo, OPEC secretary general, said in Madrid on Tuesday OPEC and its partners should cooperate to ensure they do not "fall from one crisis to another".

USA light crude CLc1 was 1.25 dollars higher at 72.03 dollars.

The world's airlines will be the single fastest growing user of oil, increasing consumption by 2.2 per cent a year on average, to 2040. "So far, we have chose to stick to our June agreements", Novak said.

The US bank said "the Iran factor may dominate the market near-term and cause a (crude price) spike", although it added that emerging market "demand concerns could reappear thereafter".

In June this year, however, after months of cutting by more than their pact had called for, largely due to involuntary reductions from Venezuela and other producers, they agreed to boost output by returning to 100 percent compliance.

That equates to an increase of about 1 million bpd, but the latest figures show they are some way from achieving that target.

Brent crude climbed above US$80 a barrel after OPEC and its allies signaled less urgency to boost output, despite USA pressure to temper prices.

It said non-OPEC would produce 66.1 million bpd of crude and liquids in 2023, up from 57.5 million bpd in 2017.

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