• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 7 hours Alberta govt to construct another WCS processing refinery
  • 7 hours Let's Just Block the Sun, Shall We?
  • 20 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 21 hours Waste-to-Energy Chugging Along
  • 2 hours What Can Bring Oil Down to $20?
  • 1 day What will the future hold for nations dependent on high oil prices.
  • 1 day Venezuela continues to sink in misery
  • 1 day UK Power and loss of power stations
  • 1 day Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 20 hours Regular Gas dropped to $2.21 per gallon today
  • 2 days No, The U.S. Is Not A Net Exporter Of Crude Oil
  • 1 day EPA To Roll Back Carbon Rule On New Coal Plants
  • 14 hours Sleeping Hydrocarbon Giant
  • 16 hours Sane Take on the Russia-Ukraine Case
Alt Text

Shale Drillers May Cut Capex As Oil Falls To $50

Shale drillers might spend less…

Alt Text

Joint OPEC+ Committee Recommends Cuts

According to Russian press agency…

Alt Text

U.S. Shale Struggles As Oil Prices Drop

U.S. shale production has beaten…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for US-based Divergente LLC consulting firm, and a member of the Creative Professionals Networking Group.

More Info

Trending Discussions

EIA: Market Tightens As Outages From Iran, Venezuela Pile Up

Iran’s crude oil production fell by more than 400,000 per day from May 2018 to September, reaching an average of just 3.4 million barrels per day last month, according to the Energy Information Administration’s Short Term Energy Outlook published on Wednesday.

The EIA’s report, delayed one day due to the Columbus Day holiday, pegs OPEC’s crude oil supply at 32.46 million barrels per day on average in 2018—down from 32.68 bpd in 2017. For all of 2019, the EIA forecast a dip in OPEC supplies to 32.14 bpd on average.

Despite declining production from Iran and Venezuela, OPEC managed to lift production for Q3 from 32.31 bpd in Q2 to 32.52 bpd in Q3, according to the report.

But while OPEC as a whole has managed to increase production despite significant losses of two of its members, oil prices have stayed stubbornly high as the market questions whether OPEC can continue to eek out oil in sufficient quantity to offset what is sure to be growing production declines in Iran and Venezuela.

The EIA now estimates that OPEC’s spare production capacity is just 1.4 million barrels per day, “the lowest level since December 2016 when global inventory levels were much higher.” Related: Will Big Oil Ever Win Back Investors’ Trust?

It is precisely this combination of continual production declines, shrinking spare capacity, and dwindling inventory that has led to higher oil prices, with the EIA estimating that spot prices for Brent crude will average $81 per barrel in Q4 2018—in sharp contrast to EIA’s estimate in September’s STEO of $76 per barrel.

Still, the EIA is expecting supply and demand to be “nearly balanced” in 2019, which, the STEO says, shall contribute to downward oil price pressures. Further downward price pressures will be realized when transportation bottlenecks in the Permian are addressed—which is expected to be achieved in H2 2019.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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