• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 6 hours While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 1 hour Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 41 mins US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 9 hours Real Death Toll In CCP Virus May Be 12X Official Toll
  • 11 hours China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 1 hour Which producers will shut in first?
  • 9 hours Marine based energy generation
  • 13 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 8 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 9 hours How to Create a Pandemic
  • 10 hours Apple to Bypass Internet and Beam Directly to Phones
  • 1 day TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
Alt Text

The Permian Boom Is Going Bust

Oil companies are already beginning…

Alt Text

OPEC Can’t Kill U.S. Shale

Saudi Arabia’s effort to crush…

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

OPEC Might Move Goalposts On Output Cut Deal

Delegates from OPEC and its non-OPEC allies discussed this week potentially changing the metric they use to measure the success of the production cut pact, with most proposals shifting the inventory goal further out in time, Bloomberg reports, citing delegates from the group.

At a meeting in Vienna on Monday, delegates discussed moving the goalposts by possibly adopting a different measure for the global oversupply than they are currently using. The OPEC/non-OPEC deal officially targets a reduction in commercial stocks in OECD countries down to their five-year average. The delegates did not reach any decision this week, and the final decision is in the hands of the energy ministers of the participating countries, who did not attend the Vienna meeting on Monday, Bloomberg reports.

But many of the proposals discussed included moving the average that would make OPEC and friends’ goal harder to achieve. One proposal considered measuring the OECD commercial stocks against the five-year average—like it is now—but suggests taking out years of high inventories from the equation. Another proposal was to use the seven-year average as the primary metric. Yet another discussion was about using a period of more than seven years to measure the inventories in developed economies, according to delegates who spoke to Bloomberg.

Using the longer average period, or not counting the years of the worst glut would make achieving the new average more difficult and could require a longer period of cuts, Bloomberg noted. Related: Germany’s Pivot From Russian Gas Will Be Costly

OPEC’s de facto leader and largest producer Saudi Arabia has already suggested that they may move the goalposts, and is saying that it is doing whatever it takes to erase the glut, even at the risk of overtightening the market.

According to Bloomberg’s sources, OECD inventories dropped in February to around 44 million barrels above the five-year average, compared to a surplus of 293 million barrels in January 2017.

Earlier this week, OPEC Secretary General Mohammad Barkindo said that although the oil market has been improving, OPEC still has work to do to bring global oil inventories back to their five-year average.

If OPEC and allies do move the goalposts, they may have even more work to do to reach the new target.

By Tsvetana Paraskova 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