Oil markets today: 3 things you need to know
* OPEC says it remains committed to Algiers deal to cut oil output
* Saudi Aramco indefinitely halts all oil shipments to Egypt
* French oil and gas major Total signs deal with Iran
Many global experts, including the UAE’s Minister of Energy Suhail bin Mohammed Al Mazrouei, claim the global oil supply glut is almost at an end and the market is finally balancing out. However, despite this, major international players continue to make bold moves and the prices of oil, which have been constantly fluctuating from January 2014, show no signs of stabilising.
Here are the 3 most important updates you need to know on the market:
OPEC committed to output cut
The Secretary-General of the OPEC says the group remains committed to a deal made in Algiers in September this year to cut output.
Mohammed Barkindo hopes that the market would rebalance in 2017 with the implementation of the agreement.
OPEC officials met in Vienna last month to work out the details of the Algiers plan to reduce oil production, but failed to reach agreement. The next meeting of OPEC ministers is on November 30.
Saudi halts oil shipments to Egypt
In another development, Saudi Arabia has informed Egypt that shipments of oil products expected under a $23 billion aid deal have been halted indefinitely.
During a visit by Saudi King Salman in April, Saudi Arabia agreed to provide Egypt with 700,000 tonnes of refined oil products per month for five years, but the cargoes stopped arriving in early October as festering political tensions burst into the open.
Total returns to Iran
The head of French oil and gas company Total has said that the firm would be happy to be the first Western oil company to sign an agreement with Iran. As yet, the company has not disclosed the details of the deal.
Before international sanctions were imposed on Iran due to its alleged nuclear programme, Total had multiple operations in the country, whose oil and gas reserves are the fourth- and second-largest in the world, respectively.
(With inputs from Reuters)