Jadwa Research have released its February 2017 Chartbook to show the rise in OPEC oil prices and the slowly down of exports to Middle Eastern countries
According to the report produced by Jadwa Investment, under the management of chief economist and head of research Fahad Alturki Ph.D, as stated that both Brent and WTI crude oil prices rose modestly month-on-month in January 2016 as preliminary data from OPEC showed that there was a high level of compliance with the previously agreed production cuts. However, the oil price across the world was capped as the US oil production forecasts increased. Brent was up three per cent and WTI increased by one per cent month-on-month in January.
Exports from Middle Eastern OPEC producers were down in January from December in Saudi Arabia, Iraq, Iran, Kuwait and Qatar. The United Arab Emirates increased exports slightly, but remained around 2mn bpd. So, as the report states, OPEC countries have stayed true to the OPEC agreed production cuts.
However, oil prices, according to Jadwa Research, are expected to remain capped as US crude oil production forecast has been revised upwards.
"Saudi crude oil production fell to 2.4 percent month-on-month in December, as the Kingdom readied itself to comply with OPEC cuts. Annual Saudi crude oil production averaged 10.5 mbpd in 2016, the highest in recent years. We forecast Saudi crude oil production to drop to an average of 10.4 mbpd in 2017."