OPEC in dark on crude supply, as Russia & Iran to curb exports

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OPEC in dark on crude supply, as Russia & Iran to curb exports

OPEC, a 14-nation pact of oil exporting countries, had been in the dark over the recent weeks on oil supply issue and had yet to fix an outlook for the second half of the year, as Russian outage on its Druzhba pipeline had trimmed its oil supply to Europe, while Iran and Venezuelan crude export would likely to decline amid an ongoing US sanction, a OPEC spokesman said in terms of anonymity on Thursday, the 9th of May 2019.

Apart from that, the source had also added that the Kingpin of OPEC (Organization of Petroleum Exporting Countries), Saudi Arabia remained cautious to pump more crude over fear of a supply glut and an eventual fall of crude oil price.

Besides, OPEC had already been under sheer pressure from US President Donald Trump to increase production and lower crude oil price, while a surprising decline in US inventories over the recent past seemed to have made the US President more stubborn on an increased crude oil production amid sanction on Venezuelan and Iranian crude.

Meanwhile, crude oil supply would likely to remain submissively clogged, as an oil contamination had forced Russia to stall flow through its Druzhba pipeline, a critical link to stream crude into Eastern Europe and Germany.