• 3 minutes China's aggression is changing the nature of sovereignty.
  • 8 minutes Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 9 minutes US oil facts
  • 11 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 16 hours Europe gas market -how it started how its going
  • 17 hours Amazing!...see article: "Turkmenistan To Close "Gates Of Hell" Gas Fire" by Irina Slav
  • 2 days Russia oil production live month after month starting from November 2021 - official stats from Rosstat agency
  • 2 days Is $100 Crude Bad For US Shale? That's what Oil CEOs Say
  • 9 hours Ukrainian Maidan after 8 years
  • 2 days Nuclear power in Russia
Martin Tillier

Martin Tillier

More Info

Premium Content

Oil Output Cuts May Be Coming But Don’t Bet on It

As I write, the world’s leaders are meeting at the G20 summit in Argentina. There are, as always, lots of story lines surrounding the meeting, some financial in nature such as the chance of informal trade negotiations, and some not so much, such as whether Donald Trump’s cancellation of his private meeting with Vladimir Putin indicates the end of their bromance. For energy investors though, the meeting will be watched with a different focus. Both Saudi Arabia and Russia are in attendance, so they will be watching for any signs of an agreement to cut oil output.

That question is being asked because of current circumstances. Crude oil has been in freefall, with both Brent and WTI having lost around a third since hitting highs in early October. There are some demand related worries involved as trade wars threaten to slow global growth, but the biggest reasons for the drop are supply related. A couple of months ago, those highs were achieved in anticipation of a disruption to global supply as the Trump administration’s abandonment of the Iran nuclear deal with Iran and the resulting sanctions took effect.

Since then though, a few things have become clear. Firstly, U.S. production has been stepped up by more than imagined. In addition, the Saudis increased their output to help offset the expected loss from Iran but, most importantly in that context, that loss doesn’t look likely to materialize. Despite a lot of tough talk, the sanctions on Iranian…





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