OPEC confirms adequate oil, gas to meet demand

He said the most recent analysis for the remaining ultimately recoverable oil resources puts the figure at 2.8 trillion barrels.

“It should be underscored that despite the continuing cumulative production, these numbers have increased over the past five decades. Moreover, these numbers do not take into account the large amounts of available unconventional oil and gas resources. Of course, as well as opportunities, there will be challenges too. For instance, there is the global economy, human resources, technology, investments and the environment and climate change. In terms of the environment and climate change – we need to remember that this is a concern for us all.”

“Current climate change negotiations to develop an agreement in Paris next month and raise the level of ambitions for the pre-2020 period are extremely important. But we need to make sure the interests and concerns of all of us are taken into account. Overall, we need to keep in mind that the three pillars of sustainable development – ‘economic, environmental and social’ – mean different things to different people,” he added.

Meanwhile, oil prices traded below $42 in Asia on Monday, this week ahead of an OPEC meeting and the release of data on China’s important manufacturing sector later in the week.

The market will be watching whether members of the Organisation of the Petroleum Exporting Countries, which meets on December 4, slash the currently high output levels and ease a crude supply glut that has depressed prices for more than a year.

Analysts said traders will also tune in to two key speeches by US Federal Reserve chair Janet Yellen this week for signs on the timing of a hike in US interest rates.

November data on China’s industrial sector is released tomorrow, with traders looking for clues on the health of the world’s top energy consumer.

At around 0230 GMT, US benchmark West Texas Intermediate for delivery in January was up 10 cents at $41.81 and Brent crude for January was trading five cents lower at $44.81 a barrel.

“We expect the focus to return to the timing of the US interest rate rise, with two key speeches by Fed Chair, Janet Yellen, on Wednesday and Thursday,” Capital Economics said in a market commentary.

Analysts expect Fed policymakers to raise interest rates during their December meeting, a move that will boost the dollar and make dollarpriced oil more expensive, denting demand and prices.

OPEC’s Friday meeting is expected to focus on the global crude oversupply, the return of Iranian oil to the market after the lifting of western economic sanctions and whether the cartel will cut production to boost prices.

“However, comments from key OPEC ministers still seem relatively sanguine. Also, it is not clear that even if OPEC did cut its production target, actual output would fall, given the cartel is already producing well above its current target,” Capital Economics said.

The price of OPEC basket of 12 crudes stood at $39.08 per barrel on Friday, compared with $39.65 the previous day, according to OPEC Secretariat calculations.

The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).