• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 1 hour Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 45 mins New Rebate For EVs in Canada
  • 1 hour China's Expansion: Italy Leads Europe Into China’s Embrace
  • 49 mins Poll: Will Renewables Save the World?
  • 2 hours Chile Tests Floating Solar Farm
  • 19 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 20 hours Trump sells out his base to please Wallstreet and Oil industry
  • 3 hours Biomass, Ethanol No Longer Green
  • 4 hours The Political Debacle: Brexit delayed
  • 11 hours Trump Tariffs On China Working
  • 9 hours Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 18 hours No Mercy: EU Fines Google $1.7 billion For Abusing Online Ads Market
  • 16 hours Oil-sands recovery by solvents has started on a trial basis; first loads now shipped.
Alt Text

Saudis Follow Up On Deeper Oil Output Cuts Promise

Saudi Arabia pumped significantly less…

Alt Text

Refining Frenzy Worsens Fuel Glut In Asia

The oil products glut in…

Alt Text

U.S. Oil Production Is Headed For A Quick Decline

Several forecasters continue to raise…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for US-based Divergente LLC consulting firm, and a member of the Creative Professionals Networking Group.

More Info

Trending Discussions

OPEC+ Deal To Be Forged In March

OPEC and its non-OPEC partners are set to officially sign a cooperation agreement in March of next year, the UAE’s energy minister Suhail al-Mazrouei said, according to Reuters.

The agreement will be officially signed in March in Saudi Arabia, the oil minister said, and will seek to align OPEC with non-OPEC oil producers, most importantly Russia, on matters likely to include achieving market balance—specifically production quotas. The term “market balance” is the new phrase OPEC is using instead of referencing specific oil prices, after OPEC in October steered its members away from any words that may put it at odds with proposed U.S. legislation called the NOPEC Act.

OPEC and a group of non-OPEC members reached an agreement on Friday to cut production starting in January 2019. OPEC’s portion of the production cuts was 800,000 bpd, with Saudi Arabia’s accounting for 500,000 bpd of that. The non-OPEC countries agreed to 400,000 bpd of the production cut, with Russia accounting for approximately 230,000 bpd of the 400,000.

Russia, for its part, said it would take “months” for that level of cut to be achieved. Likewise, OPEC’s production cuts are unlikely to shrink by 800,000 bpd immediately on January 1st, and will more than likely take months as well.

Oil prices ticked upward on Friday, but failed to stay up on Monday, even as OPEC member Libya, exempt from the most recent production cut deal, declared a force majeure on Monday as protests hit the nation’s beleaguered oil industry, shutting in production of its biggest oilfield, Sharara.

The idea of making an OPEC/non-OPEC alliance official has been bandied about for some time, most recently by Khalid al-Falih, who said in late October that he hoped to set up an official OPEC+ governing body to preside over oil market coordination.

“…we want to sign a new cooperation agreement that is open-ended. That does not expire after 2020 or 2021. We will leave it open,” Al-Falih told TASS at the time, adding that Russia would likely assume the leadership role in this endeavor.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Mamdouh G Salameh on December 11 2018 said:
    We are in effect talking about an association between OPEC and Russia based on the Saudi-Russian oil partnership.

    Russia might not even be interested in becoming an associate member of OPEC as it values more its freedom of action. Still, Russia would be happy to continue to coordinate its oil policies with Saudi Arabia and by extension with OPEC. OPEC plus Russia account currently for more than 78% of the global proven oi reserves and 54% of the world’s oil production. It also gives Russia a tremendous influence over the global oil market and oil prices.

    In other words, an OPEC+ would eclipse the United States’ and all other oil-producing nations’ reserves and production. Moreover, it will pose a formidable deterrent against the US Congress attempts to push a bill that would let the US sue OPEC for an alleged oil price fixing. The bill called “No Oil Producing and Exporting Cartels Act,” or NOPEC, was first introduced in May this year.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




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