In an unconventional bizarre plea to US Shale producers, OPEC Secretary General Mohammad Barkindo urged the North American shale producers to share the responsibility of curbing the oil glut in the international markets.
The Secretary General said that, the market needs a strict rebalancing in order to sustain the production at the current levels. He addressed his concerns of oil glut to the members and non-members while presenting at the New Delhi Energy Conference. He said that it is a responsibility of conventional and nonconventional oil producers to participate in ending the prolonged glut.
The renewed commitment from OPEC members and others helped process edge up on Wednesday, continuing the three day rise. The concerns of oversupply took their toll on the oil markets as concerns mounted over an increase in production. The prices dipped below the $ 50 level, however, recovered as news of tightening supplies came to front.
U.S. West Texas Intermediate (WTI) crude futures were trading at $51.06 per barrel at 0523 GMT, up 14 cents, or 0.3 percent, from their last settlement. Prices rose 2 percent the day before to back above $50 a barrel.
Brent crude futures, the international benchmark for oil prices, were at $56.69, up 8 cents, or 0.1 percent, from their last close. Brent also rose 2 percent the previous day.
Support is also expected from international growth, as IMF released data regarding a decent pick up in the international trade and business. Reports forecasted an increase in global oil demand in the next few years. Despite strong forecasts, some analysts expect the prices will fall again during 2018 as outlook for oil consumption declines with an increase of alternative sources of energy.