• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 1 hour Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 1 min GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 hours "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 3 hours Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 2 days Did China cherry-pick the factors that affected the economic slow-down?
  • 15 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 3 hours Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 19 hours Are you aware of Oil Price short videos on our energy topics?
  • 24 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 1 day NordStream2
  • 2 hours The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 411 days Class Act: Bet You've Never Seen A President Do This.
Rystad Energy

Rystad Energy

Rystad Energy is an independent oil and gas consulting services and business intelligence data firm offering global databases, strategy consulting and research products. Rystad Energy’s…

More Info

Premium Content

OPEC Came Up Short – Here’s What They Should Do

OPEC+ will need to stay 700,000 bpd below its agreed targets of 31.8 million bpd through 2019 in order to bring a recovery in Brent prices to the $70 level, Rystad Energy says.

The OPEC countries and Russia agreed on December 7 to cut oil production by 1.2 million bpd in 2019 – slightly larger than the 1.0 million bpd cut expected by many observers.

“The OPEC+ agreement predictably came up short of what Rystad Energy argued would be required to fully balance the market in 2019. The agreed production cuts will not be enough to ensure sustained and immediate recovery in oil prices. The muted market reaction seen thus far comes as no surprise to us”, Rystad Energy head of oil market research Bjornar Tonhaugen says.

(Click to enlarge)

Rystad Energy, the independent energy research and consultancy headquartered in Norway with offices around the world, provides comprehensive and up-to-date insight into global oil markets. In a note to clients, Tonhaugen writes:

• The agreed OPEC+ production cuts will not be enough to ensure sustained and immediate recovery in oil prices
• The decision does stand as a Christmas gift to budget-setters in the US shale industry, where the relentless growth in production is set to continue also for the second half of 2019 and beyond
• OPEC+ succeeds in preventing massive over-supply in the first half of 2019 and in putting a soft floor under oil prices for now
• If production cuts by OPEC and Russia are extended through 2019, the market can balance

(Click to enlarge)

“Most likely, OPEC will be forced to conduct production management sporadically over the next few years, unless US shale supply grows even faster than we currently expect. OPEC members have their work cut out for them in the years to come”, Tonhaugen says.

By Rystad Energy

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