• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Why hydrogen economics is does not work
  • 9 hours Starvation, horror in Venezuela
  • 19 mins The EU Loses The Principles On Which It Was Built
  • 11 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 6 hours Crude Price going to $62.50
  • 15 hours Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 9 hours Chinese EV Startup Nio Files for $1.8 billion IPO
  • 20 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 20 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 8 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 20 hours Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 1 day WTI @ 69.33 headed for $70s - $80s end of August
  • 22 hours Monsanto hit by $289 Million for cancerous weedkiller
  • 1 day California Solar Mandate Based on False Facts
Alt Text

Why Saudi Oil Production Suddenly Dropped

Oil prices jumped on Monday…

Alt Text

Kuwait Oil Production Hits 18-Month High

Kuwait’s oil ministry said that…

Alt Text

Shockwave In Shipping Could Send Brent Soaring

New IMO regulations for the…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Russia Exceeds Assigned Quota For Production Cut

Putin oil company

Russia has exceeded its assigned quota for crude oil production cuts by 790 barrels a day, sources from the Energy Ministry told media. Russia was supposed to cut 300,000 bpd from its October 2016 average daily output levels, and it reached that milestone shortly before the end of April.

Given the current market sentiment, which is still leaning towards pessimism overall, the news will hardly have a big effect on prices, especially with the market eagerly awaiting the latest weekly inventory report of the U.S. Energy Information Administration. Yesterday, the American Petroleum Institute estimated that inventories had dropped by 4.2 million barrels in the week to April 28.

Meanwhile, most OPEC nations that are taking part in the production cut agreement struck last November are continuing to reduce their daily production, with the group’s total falling to 31.97 million bpd, according to a Reuters survey. News from Libya, which is exempted from the cut, put further pressure on prices, when the National Oil Corporation said it had upped output to over 760,000 bpd – the highest since December 2014.

Analysts and industry insiders such as Continental Resources’ Harold Hamm believe that the cut extension is almost certain. The certainty comes from rising U.S. production, which is offsetting OPEC’s cuts, and from the fact that those that are cutting the most are also losing market share, which is hardly a good long-term strategy for price improvement.

If OPEC does not extend its cut deal, one analyst told Platts, prices could revert to US$40 per barrel. On the other hand, FGE chairman Fereidun Fesharaki said that a price level of between US$50 and US$60 is sustainable with further cuts, perhaps even into 2018.

Russia has given its principal support of an extension, but so far Alexander Novak has not gone into any details besides saying that the support is conditional on consensus within OPEC.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Anders on May 03 2017 said:
    Is this verified by outside sources?
    Or is it like one of Putins "peace deals" in Syria that leads to more bombing of civilians? Ie alternate truth.
  • Naomi on May 14 2017 said:
    Putin needs cash to upgrade from Windows XP.

Leave a comment




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