• 3 minutes China's aggression is changing the nature of sovereignty.
  • 8 minutes Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 11 minutes Europe gas market -how it started how its going
  • 4 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 29 mins The Fascist Dictatorship called Russia under Dictator for Life Putin
  • 23 hours Russia, Ukraine and "2022: The Year Ahead"
  • 22 hours Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 8 hours FOREX. Currencies of oil-producing countries.
  • 2 days "Tackling One Of The Fracking Industry’s Biggest Problems" by Robert Rapier
  • 3 days Energy Storage Could Emerge As The Hottest Market Of 2022
  • 2 days NordStream2
  • 2 days Following the Big Money
  • 3 days January 23rd - Washington D.C. and Brussels - Demonstrations Against Tyranny
Things Are Looking Grim For Colombia’s Oil Industry

Things Are Looking Grim For Colombia’s Oil Industry

Colombia’s already-struggling oil industry is…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Russia And Saudi Arabia Consider Even Deeper Oil Output Cuts

Russia and Saudi Arabia may be ready to enact deeper oil production cuts to stabilize prices, the energy ministers of the two countries said in a joint statement.

The two will “continue to closely monitor the oil market and are prepared to take further measures jointly with OPEC+ and other producers if these are deemed necessary,” the statement said as quoted by Bloomberg.

Last week, OPEC+ agreed to remove 9.7 million bpd of oil from the market, with the cuts beginning next month and remaining in effect until the end of June, after which the group will start to ramp up production gradually.

From 9.7 million bpd in May to June, the cuts will decline to 7.7 million bpd for the period July to December 2020, and then further to 5.8 million bpd until the end of April 2022.

However, demand has continued to fall sharply because of the Covid-19 pandemic. Oil consumption in the United States alone—the world’s largest consumer of oil—has dived by a third, Reuters’ John Kemp wrote in his weekly column. Even though there is talk about reopening the economy, this will most likely happen gradually, as in Europe, and it will be at least a few months until demand begins to recover in any meaningful way.

Meanwhile, oil inventories are on the rise. The federal U.S. government was this week reported to be negotiating leasing space in the Strategic Petroleum Reserve to nine oil companies that have nowhere else to store their unsold and temporarily unsellable crude.

In this context, it is hardly a surprise that the effect the OPEC+ production cut announcement had on prices was muted, with most traders appearing to believe it was not deep enough, even with the additional cuts to be implemented by non-OPEC+ producers. The 20 million bpd figure is the one being thrown around as the size of the total reductions, and yet demand decline this quarter is seen at some 30 million bpd.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on April 17 2020 said:
    It is a waste of time while the coronavirus outbreak is raging. Didn't they witness the global oil market's verdict on the recent production cuts?

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

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