• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 4 mins Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 19 hours Putin blocks Ukraine access to Black Sea after Joe blinks
  • 12 hours America's pandemic dead deserve accountability after Birx disclosure
  • 2 days Today Biden calls for Summit with Putin. Will Joe apologize to Putin for calling him a "Killer" ?
  • 2 days U.S. Presidential Elections Status - Electoral Votes
  • 2 hours Fukushima
  • 2 days Biden about to face first real test. Russia building up military on Ukraine border.
  • 24 hours So. Who's for Universal Basic Income?

Breaking News:

U.S. Cancels All Q2 Oil, Gas Lease Sales

Could Iraq Really Become OPEC’s Largest Oil Producer?

Could Iraq Really Become OPEC’s Largest Oil Producer?

Iraqi Oil Minister Abdul-Jabbar announced…

Is This The End Of The Covid Oil Glut?

Is This The End Of The Covid Oil Glut?

The massive oil glut that…

Why Libya’s Oil Production Could Drop This Week

Why Libya’s Oil Production Could Drop This Week

Libya’s crude oil production, which…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

IEA Chief Urges Oil Producers Not To Cut Output

While OPEC is considering cutting oil production again, the executive director of the International Energy Agency (IEA), Fatih Birol, called on Monday for ‘common sense’ because fresh cuts could have negative effects on the oil market.

“Currently markets are very well supplied but we should not forget that spare capacity in Saudi Arabia is very thin, therefore cutting the production significantly today by key oil producers may have some negative implications for the markets and further tightening the markets,” Reuters quoted Birol as saying at a news conference in Bratislava.

“My appeal to all producers and consumers across the world is to have common sense in these difficult days,” the IEA’s executive director said.

In its Oil Market Report for November published last week, the IEA said that surging production from the world’s biggest oil producers have more than offset Iranian and Venezuelan supply losses, while demand growth in some developing markets is slowing, pointing to a global oil oversupply next year.

Despite the implied surplus in oil supply next year, the IEA doesn’t see the oversupply as a threat to the markets.

“Although the oil market appears to be more relaxed than it was a few weeks ago, and there might be a sense of ‘mission accomplished’ that producers have met the challenge of replacing lost barrels, such is the volatility of events that rising stocks should be welcomed as a form of insurance, rather than a threat,” the IEA said in its report.

After the latest plunge in oil prices in recent weeks and after supply-demand analysis started to suggest that an oversupply may be building, OPEC and its de facto leader Saudi Arabia have started to hint at new production cuts, with speculation ranging from cuts of 1 million bpd to as much as 1.4 million bpd.

OPEC and allies meet in early December in Vienna, where they are set to discuss the state of the oil market and potential new oil production policies.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Jonathan on November 19 2018 said:
    Sorry Chief(s)
    The Oil market could give 2 craps about your concerns because that's what Oil price does

    Bring the capital or shut up
  • Dan on November 20 2018 said:
    Isn't that quite a backpedaling oil speak when they claim oversupply to lower oil prices while U.S.shale continues to grow?

Leave a comment




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