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

Can Deep Water Wind Farms Power The World?

A recent study suggests that…

Draw In Crude Inventories Lifts Oil Prices

Draw In Crude Inventories Lifts Oil Prices

Oil prices reversed course on…

Six OPEC Members, Plus Russia, Now Open to Emergency Meeting

Oil prices have whipsawed back and forth over the past two weeks, largely due to the rise and fall of expectations that OPEC might call an emergency meeting.

Comments from several Russian oil executives and government officials sent oil prices surging at the end of January. Then prices retraced their gains when officials from OPEC dismissed the stories as just rumors. Nothing had changed, OPEC officials argued, even though some people in Russia were hinting at a meeting.

But the rumors persist. The latest fuel to the rumor fire is the fact that now six OPEC member states have said that they would be willing to attend an emergency meeting if one was called, the highest total yet. Venezuela has officially requested an emergency meeting, and the oil minister from the South American OPEC member said that six OPEC members plus two non-members are willing to discuss measures to stabilize oil prices.

Related: Oil Majors Converging Here Could Mean A New Hotspot

The list includes Iraq, Algeria, Nigeria, Ecuador, Iran, and of course Venezuela. Russia and Oman, two non-OPEC members, would also be willing to attend. “The idea is to not just hold a meeting, but for all the countries to attend with the intention of reaching agreements,” Venezuela’s oil minister Eulogio Del Pino said in the statement. “Current prices are below equilibrium, and that encourages the speculators and market instability.”

The last statement is especially true – oil markets are at their most volatile point in years. The price movements over the past few weeks have been large and extreme. But speculators are starting to take much more bullish positions on crude oil, closing out net-short positions and going long. That suggests that a more solid price rally could be just around the corner – or, at least, speculators think that might be the case.

Related: Why U.S. Shale Is Not Capitulating Yet

A rally will depend on the fundamentals, however, which is why a potential emergency OPEC meeting looms so large over the oil markets. Much now depends on Saudi Arabia’s position, the most powerful member of OPEC. Saudi Arabia has suggested in the past that it would be open to coordinated production cuts if Russia came along. There are still a lot of hurdles that would need to be cleared for cooperation between all the parties involved, but Venezuela is doing its best to get everyone on board.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Russian Jew on February 08 2016 said:
    Russia will not give in an inch of its oil market share to anybody, period.
  • hugh on February 07 2016 said:
    super big oil money dependent nations are getting scare by the growing number of small producers, growing interest of electric and eco vehicles and movement towards alternative energy. so dumping oil to lower price for few years hoping this will be enough to do the killing. no special Saudi policy or meeting is real. this childish mind game play many time over to get people on their boat of cheap oil and destory the enthusiasm to saving energy before the slaughter begin by limiting supply and then telling people how little oil is left in the ground as they have told us and did to us before

Leave a comment

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