(MENAFN) Middle East OPEC producers said that they are concerned of weak demand and the lack of supply in the first quarter of 2018 may damage an oil price rally that has pushed Brent crude about 30 percent higher since June, OPEC and industry sources said.
Supply cuts since Jan. 1 by the Organization of the Petroleum Exporting Countries, Russia and other producers helped lift prices, while Hurricane Harvey added to gains when it knocked out nearly a quarter of U.S. refining capacity.
Benchmark Brent rose above USD59 a barrel this week, its highest level in more than two years and nearing the USD60 mark. Gulf oil sources have said OPEC's largest producer Saudi Arabia would like to achieve that level this year. Brent is now trading around USD58.
"I don't think it is sustainable" a senior Gulf oil industry source said "I don't think it is sustainable, citing possible excess supply from U.S. shale oil producers in the first few months of 2018 on the back of higher prices now.
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