• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 3 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 9 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 1 day Indonesia Stands Up to China. Will Japan Help?
  • 20 hours US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 8 hours Beijing Must Face Reality That Taiwan is Independent
  • 1 day Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 1 day Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 22 hours Might be Time for NG Producers to Find New Career
  • 2 days Phase One trade deal, for China it is all about technology war
  • 18 hours Trump has changed into a World Leader
  • 2 days Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 2 days Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
Alt Text

Will Oil Prices Crash Or Rally When Iran Reacts?

Oil prices have soared following…

Alt Text

Just How Serious Is The Shale Slowdown?

There has been a lot…

Alt Text

How China Could Restart The U.S. Oil Export Boom

China may resume purchases of…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Premium Content

OPEC Forced To Consider Production Cuts As Bearish Pressure Mounts

OPEC will consider at its December meeting instituting even deeper production cuts, OPEC sources told Reuters today, even though not everyone in the group is complying to the existing production cuts.

The “everyone” refers to Iraq and Nigeria, which are notorious over producers compared to what has been assigned to them under the current production cut pact. Still, OPEC has managed to overcomply month after month, but Iraq and Nigeria have repeatedly failed to adhere to the agreement—a likely sore spot within the cartel as other members have done their fair share, or as in Saudi Arabia’s case, more than their fair share.

Other OPEC members, according to the source, and in particular Saudi Arabia, would be loath to implement even more cuts unless Iraq and Nigeria step up their compliance.

“In December we will consider whether we need more cuts for next year. But it is early now, things will be clearer in November,” the source told Reuters.

November is when OPEC’s JTC committee is supposed to meet, and the committee will likely be looking closely at the two rogue members’ production, and will submit its findings and recommendations to OPEC to be debated at the full OPEC+ meeting that will be held on December 5 and 6.

The pressure on OPEC to act aggressively to keep oil prices from floundering is immense with even serious geopolitical Middle East turmoil failing to bolster oil prices for any significant length of time, combined with its own demand growth projections that have been lowered on a fairly regular basis.

Further lighting a fire under OPEC is growing oil production in the United States that has now reached 12.6 million bpd, up from 11.7 million bpd at the start of the year. But any moves by OPEC to offset rising crude oil production in the United States also comes with the side effect of giving way of market share.

 By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play