• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 3 mins Thugs in Trumpistan
  • 32 mins Would bashing China solve all the problems of the United States
  • 1 hour Model 3 cheaper to buy than BMW 3 series.
  • 3 hours Pompeo's Hong Kong
  • 10 mins Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 19 hours China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 1 hour Natural gas is crushing wind and solar power
  • 12 hours China’s Oil Thirst Draws an Armada of Tankers
  • 2 hours Coronavirus hype biggest political hoax in history
  • 4 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 10 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 6 hours Michael Moore's Controversial "Planet of the Humans" Movie
  • 6 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
Oil Slides As Russia Plans To Raise Production

Oil Slides As Russia Plans To Raise Production

Reports that Russia plans to…

Oil Price Rally Breaks Records In May

Oil Price Rally Breaks Records In May

Early signs of growing demand…

Oil Prices Fall On Bearish EIA Data

Oil Prices Fall On Bearish EIA Data

Oil prices fell on Thursday…

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 Not In A Hurry To Cut Deeper

OPEC may be mulling over deeper oil production cuts, but they won’t be rushing to make that decision, even though a panel monitoring the cuts will be meeting next month, Reuters reported on Tuesday, citing OPEC delegates and sources familiar with the cartel’s thinking.

Russia is hosting a meeting of five oil ministers from countries supervising the production cut, plus Saudi Arabia in its capacity of OPEC president, on July 24. Although the officials could discuss options to prop up prices and draw down inventories, which may include levying production cuts on currently exempt Libya and Nigeria, OPEC sources do not believe that an outright deeper production cut will be considered soon.

“I doubt it will be considered soon,” one OPEC delegate told Reuters—a comment that leaves room for OPEC to exceed rather than just meet expectations, which was a problem the last go around when OPEC failed to meet the market expectations of cutting deeper.

“It is possible but there are no real discussions now,” according to a source familiar with the matter. The current deal’s downside is Libya and Nigeria being exempt from the cuts, the source told Reuters.

According to another OPEC delegate, the cartel may consider capping the crude production growth in Nigeria and Libya, rather than having them cut output.

Last week, Iran’s Oil Minister Bijan Zanganeh said that OPEC producers are holding discussions on potentially deepening the cuts, although some cartel members believe that the current deal needs more time to take effect on the oil market. Related: Oil Prices Inch Higher As Saudi Crude Oil Loadings Drop

On May 25, OPEC and non-OPEC producers part of the deal extended the supply-cut agreement into March 2018, but failed to excite the market, which has grown weary of OPEC talk, which promised to do “whatever it takes” to erase the glut. Fresh fears of rising supply from U.S. shale, as well as from OPEC’s own but exempt Nigeria and Libya, returned to the oil market, which last week hit its lowest in 10 months and ended a fifth consecutive week lower.

This week, oil prices started off on a higher note on Monday, and were also up on Tuesday for a fourth consecutive trading day, propped up by a weaker US dollar. At 9:08am EDT on Tuesday, WTI Crude was up 1.18 percent at US$43.89, while Brent Crude was trading up 1.35 percent at US$46.45.

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