• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 11 mins Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 3 mins US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 14 mins Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 13 hours Mr
  • 22 hours While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 1 hour ‘If it saves a life’: Power cut to 1.5 million Californians
  • 10 hours Free market or Freeloading off the work of others?
  • 1 day How to Create a Pandemic
  • 23 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 11 hours Marine based energy generation
  • 17 hours Which producers will shut in first?
  • 10 hours China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind

Breaking News:

WTI Slides On Huge Crude Inventory Build

Alt Text

China's Plan To Capitalize On The Oil Price War

While Saudi Arabia and Russia…

Alt Text

What Happens If U.S. Shale Goes Bust?

The oil price war and…

Alt Text

Why U.S. Shale Will Survive The Oil Price War

As the oil sector continues…

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 Hits 100% Compliance With OPEC Cut

Russia has effectively reached its 300,000-bpd production cut target under its agreement with OPEC, Energy Minister Alexander Novak said. “Yesterday it was about 298,000 barrels. We can say that we have reached 300,000 barrels,” he told media on Friday.

The milestone comes none too soon, as Russia had promised to achieve this level by end April. Russia had undertaken the cut off its October daily average, which exceeded 11 million bpd in a bid to help OPEC’s efforts to rebalance the market and improve prices. Together, OPEC – bar Nigeria and Libya – and 11 non-OPEC producers agreed last November to take 1.8 million barrels from daily global supply.

However, these efforts have proved challenging, with global supplies actually rising during the first quarter of the year, despite hopes for the opposite and surprisingly high compliance. As Oil & Gas 360 noted in March, prior to the agreement, many countries increased production to record levels. This lessens the effect of any production cut, as the cuts are being made relative to the highest production levels in years.

As a result, despite Saudi Arabia cutting significantly more than it was supposed to and Iraq working its way up to its own target, OPEC is now discussing an extension of the agreement into the second half of the year. Related: Is Canada’s Oil Industry Regaining Momentum?

Russia is taking part in the discussions, Novak said last week, adding that a decision will be made after a meeting with OPEC on May 24, a day before the cartel’s annual meeting that should see an official announcement on the extension.

Meanwhile, shale output in the U.S. is rising and this is pressuring prices, fuelling pessimism that if the rate of output growth there continues, the OPEC extension would not have the desired effect.

At the same time, however, the International Energy Agency warned that unless investments in oil pick up soon, a deficit will emerge after 2020. Middle Eastern producers need higher oil prices for new investments, but shale producers are doing pretty well at US$50 a barrel, with breakeven prices across the shale plays averaging US$35 a barrel, according to data from Rystad Energy.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment
  • Naomi on April 29 2017 said:
    OPEC should find something productive to do. Weave baskets. Raise camels. Otherwise pound sand and cut the overhead. Too many eaters spoil the bottom line.

Leave a comment




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