• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 2 hours Which producers will shut in first?
  • 5 hours The Most Annoying Person You Have Encountered During Lockdown
  • 1 hour Its going to be an oil bloodbath
  • 21 hours We are witnesses to the end of the petroleum age
  • 1 hour Russia's Rosneft Oil Company announces termination of its activity in Venezuela
  • 4 hours Saudi Aramco struggling to raise money for this year's dividend of $75 billion. Now trying to sell their pipelines for $10 billion.
  • 1 day Breaking News - Strategic Strikes on Chinese Troll Farms
  • 1 day >>The falling of the Persian Gulf oil empires is near <<
  • 1 day Natural gas price to spike when USA is out of the market
  • 4 hours How to Create a Pandemic
  • 1 day A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 10 hours Wastewater Infrastructure Needs
Alt Text

Not Even China Can Save Oil Markets This Time Around

Despite still sluggish oil demand,…

Alt Text

Standard Chartered Sees Record Oil Demand Loss This Year

Lockdowns and travel restrictions will…

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

Macquarie: OPEC Deal To Collapse In 2018

OPEC’s production cut deal is unlikely to survive beyond its current deadline in March 2018, with the agreement seen falling apart towards the middle of next year, in which case a huge amount of extra oil would hit the market, Ian Reid, head of European oil and gas research at Macquarie, told CNBC on Thursday.

OPEC’s deal has not had the cartel’s desired effect on the markets, neither in terms of oil prices nor in drawing down the global glut.

According to Reid, the volume of U.S. shale output is basically nullifying OPEC’s efforts.

The key question for OPEC now is if they can extend the production cut deal into 2019, Macquarie’s manager said, but added that he did not see the cartel being able to do that.

“I think that’s going to be a very hard ask to be honest,” Reid noted.

“They can’t get the price up to a level where they can keep the shale guys out of the game so unfortunately they’re just chasing their tail at the moment,” he said, commenting on OPEC’s current strategy.

On Wednesday, Macquarie slashed its Brent price forecasts for the rest of this year as well as for 2018 and 2019, saying, “We believe OPEC has few options. Option 1 is to maintain cuts through 2019 and allow time for demand to grow and easy growth to slow; option 2 is stop the cuts immediately. The current strategy is probably the worst. The reality is even the most optimal of OPEC's potential strategies probably will not work.” Related: Shale Efficiency Has Peaked… For Now

Mounting fears of rising oversupply, coupled with no tangible signs for traders and analysts that OPEC’s agreement is working, sank oil prices to a 10-month low on Wednesday, with WTI touching its lowest intraday level since August last year.

At 10:19am EDT on Thursday, oil prices were edging up from yesterday’s lows, with Brent rising to above US$45 again, after having slipped below that threshold on Wednesday. Brent was trading up 1.36 percent at US$45.43, while WTI Crude was up 0.99 percent at US$42.95.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment
  • oiltrader on June 22 2017 said:
    Oil Price will down at 29 or 31 USD in just two weeks, simply because economy is rapidly slowing, all financial and forex datas are showing the fast decline of oil price
  • ameriproud on June 22 2017 said:
    OPEC screwed americans in the 70's and are trying to do it again. This time it isn't working thanks to shale. If it weren't shale we'd be paying around $4.50 to $5.50 in the northeast and $7.50 + as far as calif.. OPEC is GETTING WHAT IT DESERVES!!!
  • Scott Leach on June 22 2017 said:
    Usually jawbone Thursday is BS to get the prices to climb!

    It must really be a dire situation when even the jawboning is negative to prices!

Leave a comment




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