• 4 hours Did U.S. just start war with China? $60 Billion tariff package coming fast
  • 20 mins Trump Bans Venezuelan National Cryptocurrency
  • 2 hours Self-Driving Cars' First Fatality
  • 7 mins The Facebook/Cambridge Analytica Scandal
  • 1 hour Surprise! Aramco Scraps International Listing Plans
  • 3 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 4 hours Goldman Sachs Expects Tesla to Miss Model 3 Targets Again
  • 2 hours Why do Driller stocks move with the daily price of oil?
  • 6 hours Flying Taxis In New Zealand - Very Soon?!
  • 24 hours Saudi Fund Buys Stake in Hollywood Talent Agency
  • 23 hours Volkswagen To Announce $340 Million Tennessee Investment To Build New SUV For U.S. Market
  • 20 hours Is Trump Harming Oil Industry?
  • 1 day G20 Rejects Calls for Cryptocurrency Regulation
  • 5 hours Why Is The EU Spending Billions On A Gas Pipeline If It Wants To Fight Climate Change?
  • 7 days Terminator plans to sue big oil for 'first degree murder'
  • 20 hours Tillerson just sacked ... how will market react?
Alt Text

The Truth About Aramco’s $2 Trillion Valuation

There has been significant doubt…

Alt Text

Saudi Arabia Plans Its Own Shale Revolution

Saudi Aramco is looking to…

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 Hits 100% Compliance With OPEC Cut

Oil storage

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:

Back to homepage

Trending Discussions

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