• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 2 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 1 day "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 4 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days Demonising fossil fuels has caused major grid problem in Australia
  • 5 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 6 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 331 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 9 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
Is A Recession Really The Next Big Risk For Oil?

Is A Recession Really The Next Big Risk For Oil?

Crude prices have fallen this…

Why Are China’s Fuel Refinery Rates So Low?

Why Are China’s Fuel Refinery Rates So Low?

As fuel prices throughout Asia…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Crude Oil Stocks Rise Despite U.S. Sanctions

Crude oil inventories in the world are rising despite U.S. sanctions, which have affected Venezuelan and Iranian production, Saudi Arabia’s Energy Minister Khalid al-Falih said, as quoted by Reuters, at a briefing in Baku where OPEC is meeting with its production cut partners to discuss future steps.

According to Falih, it’s U.S. production that is more than offsetting the decline in Venezuela and Iran. Unsurprisingly, Falih once again said the cuts may need to extend beyond April and even into the second half of the year.

“My assessment is that the job still remains ahead of us... We are still seeing inventory builds... We need to stay the course certainly until June,” the official said, adding “We like to remain ready to continue monitoring supply and demand and do what we have to do in the second half.”

OPEC and its partners led by Russia agreed to remove 1.2 million bpd from global supply in December in a bid to prop up falling prices. Although Saudi Arabia has been cutting more than agreed, like last time, compliance has not yet reached 100 percent. As of February, it stood at 89 percent, an improvement from 83 percent for January. Iraq and Nigeria were behind the lower compliance rate as they produced more than they had agreed to.

Saudi Arabia, Al-Falih said earlier this month, will continue pumping 9.8 million bpd in April as it plans to do this month, which is lower than what it agreed to produce under the December agreement. If it decides to maintain this production rate beyond April, however, this might rekindle concern about insufficient supplies. Related: Oil Markets In Limbo Ahead Of OPEC Meeting

Interestingly, Goldman Sachs said early this month it expected the cartel to clear up the supply overhang by April, which would make it unnecessary to continue producing less until June.

Goldman’s commodity chief Jeffrey Currie told CNBC, "OPEC is pursuing a shock and awe strategy," cutting production faster and deeper than the investment bank expected. This suggests that supply will tighten sufficiently by April for OPEC to call the mission accomplished.

After that, Currie said, OPEC will probably take a month or two to announce how it will proceed with dialing back the cuts and this would discourage U.S. producers from boosting their own production further, bringing about another price crash.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News