He said refinery maintenance in the U.S., growth in non OPEC supply especially in the United States and actions of financial players in the market have slowed the impact of the recent production cuts that were exercised by 24 countries that joined together on Dec 10 previous year.
Saudi Arabia and Russian Federation signaled they could extend production cuts into 2018, doubling down on an effort to eliminate a supply surplus just as its impact on prices wanes.
World oil prices are rising on May 8 after the positive statements made by a number of countries regarding the possibility of extending the OPEC oil output cut deal.
The market is becoming more confident that the Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russian Federation, who pledged to cut output by nearly 1.8 million barrels per day (bpd) during the first half of the year in order to prop up the market, will extend the deal to cover all of 2017. This is the first time the Saudi minister has suggested curbs could be extended beyond 2017.
The fall in oil prices was, however, given some support by a report indicating that there was a decline in output in Saudi Arabia.
But as global crude stocks remain high and prices come under renewed pressure, Riyadh seems to have concluded an extension is inevitable to drain excess inventories and restore confidence.
Krish announces Manikarnika in Varnasi
Kangana has also been vigorously training for her role, taking horse-riding lessons among other strenuous physical training. On Thursday, May 4th, a poster of the Bollywood film "Manikarnika: The Queen of Jhansi" was released.
Both futures contracts have dropped by more than 10 per cent in the last month despite moves by the Organization of the Petroleum Exporting Countries and other exporters including Russian Federation to restrict supply to try to drain a global glut.
Since a low point in May 2016, US producers have added 387 oil rigs, or about 123 per cent, Goldman Sachs said. Funds also cut their net long position.
Despite this, Al-Falih said that markets had improved from last year's lows, when crude prices fell below $30 per barrel.
"Data (for production and storage levels) is unlikely to help turn this move into something more sustainable". Oil has surrendered most of its gains since their deal late past year.
The benefits of OPEC's agreement to cut output have proved elusive. "However, if they maintain the status quo, the market takes this as a failure to agree on a production cut and therefore adjusts prices downward".