• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 16 hours Could Venezuela become a net oil importer?
  • 8 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 19 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 1 hour Oil prices going Up? NO!
  • 16 hours Gazprom Exports to EU Hit Record
  • 18 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 16 hours Could oil demand collapse rapidly? Yup, sure could.
  • 9 hours Oil prices going down
  • 19 hours Why is permian oil "locked in" when refineries abound?
  • 16 hours Oil Buyers Club
  • 19 hours EVs Could Help Coal Demand
  • 7 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 1 day China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 1 day Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 2 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 14 hours Saudi Arabia turns to solar
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