• 1 min UAE Oil Giant Seeks Partnership For Possible IPO
  • 45 mins Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 hours VW Fails To Secure Critical Commodity For EVs
  • 3 hours Enbridge Pipeline Expansion Finally Approved
  • 4 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 hours OPEC Oil Deal Compliance Falls To 86%
  • 20 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 22 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 1 day Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 1 day EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 1 day Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 1 day Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 7 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 7 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 7 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
Oil Prices Poised To Rise In Early 2018

Oil Prices Poised To Rise In Early 2018

A consistent fall in comparative…

India’s Urban Explosion Boosts Oil Demand

India’s Urban Explosion Boosts Oil Demand

As India sees incredible growth…

OPEC + Russia Agree On ‘’Monitoring Mechanism’’

OPEC logo

At a meeting in Vienna yesterday, Saudi Arabia, Russia, Venezuela, Algeria, Oman, Qatar, and Kuwait agreed on a mechanism to monitor the rate of compliance with the crude oil production cut agreement sealed at the end of last year as an effort to rebalance the market.

The meeting comes amid growing concern among investors about the chance of success of the agreement, given OPEC’s history of going back on its word in similar agreements in favor of protecting market share and revenues.

In addition to bullish statements from the attending oil ministers, such as Russia’s Novak’s belief that international benchmark prices could reach US$60 before the end of the year, the meeting aimed to stoke optimism in a more concrete way: by setting up a committee as part of a mechanism to monitor compliance among the signatories of the production cut deal.

When the deal was first agreed, OPEC said that it would use its secondary-source production figures for each member as the principal tool of assessment. These, however, do not cover Russia’s and other non-members’ production. Exports are also likely to be factored in the assessment.

A committee will be set up to double-check production figures from the producers as well as from international organizations. A rate of compliance at 80-90 percent would be sufficient for the agreement’s success, Algeria’s Oil Minister Noureddine Boutarfa said. Novak said that only 100% compliance will be accepted.

The compliance issue is likely to remain center stage for the remainder of the month, the ministers also said, with more production data unlikely to be released from the OPEC-non-OPEC camp. Rather, the partners will be announcing further details about how they would assess compliance. So far, according to the officials, 1.5 million bpd of crude have been taken off world markets.

Oil’s initial reaction was positive, but moderately so: Brent crude trading at US$55.54 a barrel in midday Asia trade on Monday, up by 0.1 percent, and WTI changing hands at US$53.25 a barrel, up by 0.06 percent.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News