Global pact to limit oil supply likely to extend, but demand increase crucial to sustain prices

by Dramelin 9:30 PM 0 comments

However, rising domestic production in the United States and increased shale production could continue to hamper such effort to support oil prices.
The case for an increase in demand in emerging markets is strong, particularly with rising sales of new vehicles and two-wheelers," he said.
Alan Bannister, regional director of oil content at S&P Global Platts, said on CNBC`s "Squawk Box" that the positive impact on prices from the current pact means it will likely be extended.
The joint committee said in its Sunday statement that it is satisfied with the level of conformity so far.
That viewpoint came after a joint committee of ministers from the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC nations agreed over the weekend to review whether they should extend a pact to limit oil supply by another six months, according to a Sunday statement.