Crude-oil prices fell on Wednesday, due to observations that non OPEC oil producers did not cut production as much as was expected from them. Mohammed al-Sada, oil minister of Qatar, an OPEC member country, expressed concerns regarding the output slowdown, claiming that not everything works according to plans of the important agreement between 13 members of the Organization of the Petroleum Exporting Countries and 11 oil producers outside of the group.
At the International Petroleum Week in London, Al-Sada also defended the efforts, and the deal, saying, “These efforts and the consensus achieved thereof made a remarkable impact in the narrative of oil prices.” The complicated agreement is designed to cut of 1.2 million barrels a day, which will help to stabilize a market suffering from extensive oversupply, and considering the number of countries involved it is not surprising that complications arise.
Andy Lipow, president of Lipow Oil Associates in Houston explained, “The market is still trying to determine which is going to win out. Is it going to be OPEC and non-OPEC production cuts actually resulting in substantial inventory draws or are we going to see increases in gasoline [and other crude stocks]?” MarketWatch reported.
Now the market is anticipating the inventory data from the American Petroleum Institute, to be released late Wednesday.