Opec and oil prices

Opec secretary-general Mohammed Barkindo

Opec secretary-general has said that the oil export organisation is on the verge of success in its fight to rebalance the global crude market.

In a speech, Mohammed Barkindo claimed that, ''There is clear evidence that the market is rebalancing.  The process of global destocking continues, both onshore and offshore, with positive developments in recent months showing not only a quickening of the process but a massive drainage of oil tanks across all regions.''

Oil ministers from Opec are meeting in Vienna on November 30.  At the meeting, they will agree with Russia and other countries to extend production of 1.8 million barrels a day beyond the present deadline of March 2018.

Opec and other exporter nations introduced the production curbs in January to help boost oil prices.  The price of Brent crude inched seven cents higher to $55.71 in New York last night, having eased back from a two-year high last month.

Yesterday, oil prices were given a further boost by news that Saudi Arabia had cut crude oil allocations for November by 560,000 barrels per day.

As Opec's most powerful member, Saudi Arabia has made the biggest contribution to the supply cuts.