The OPEC production cut agreement…
Crude oil’s drop back into…
OPEC Secretary-General Mohammad Barkindo dismissed speculation that the United States’ increase in shale oil production was counteracting the effects of the bloc’s less-than-two-month-old output reduction strategy, according to comments made at the International Petroleum Week in London.
The Nigerian leader of the powerful oil cartel said he looked forward to an “energy dialogue” with the U.S. – a country that, just one month ago, swore in a new president that has vowed to prioritize oil exploration and extraction projects as well as support infrastructure, such as pipelines.
“We are not looking at the U.S. as a risk, we are looking at the U.S. as a partner — a strategic partner in the rebalancing process,” the head of the Organization of the Petroleum Exporting Countries said Tuesday at the conference in the United Kingdom.
At the end of November, OPEC countries met in Vienna to discuss the terms of a production reduction deal to reverse the effects of the global oil supply glut that has been plaguing markets since 2016. After reaching an agreement internally, the bloc reached out to other exporters of note to join in the effort – raising the number of countries committed to rebalancing supply markets from 13 to 24. The United States was not part of this deal, because since the Arab Oil Embargo of the 1970s, it consumes most of the light oil that it produces instead of selling it to other nations.
Related: Unsatisfied With Oil Prices, Iraq Calls For New OPEC Meeting
Data shows a 90 percent compliance rate in January for the two dozen countries that have pledged to the agreement.
Still, Russian oil exports increased last month and the nation plans to boost foreign sales of the medium sour grade Urals crude over the next few weeks as well. Exports via the Russian Transneft pipeline system in January were up 114,000 barrels per day from December’s levels.
By Zainab Calcuttawala for Oilprice.com
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Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…