• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 31 mins Shale Oil will it self destruct?
  • 1 hour NYT: Mass Immigration Roundups in U.S. to Start Sunday
  • 6 hours White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment
  • 5 hours South Korea imports No Oil From Iran in June - First-Half Imports Fall 37%
  • 13 hours U.S. Administration Moves To End Asylum Protections For Central Americans
  • 12 hours U.S.- Taiwan: China Says Will Freeze Out U.S. Companies That Sell Arms To Taiwan
  • 46 mins Germany exits coal: A model for Asia?
  • 18 mins Starlink Internet Courtesy of Tesla
  • 1 day Rising air pollution and green house effect
  • 1 day Oil Price Could Fall To $30 If Global Deal Not Extended
  • 2 days Is This The End of BBQ?
  • 1 day U.S. Economic Expansion: Rich Get Richer
  • 15 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
Alt Text

1 Million Bpd At Risk In Gulf Of Mexico Tropical Storm

Oil producers are beginning to…

Alt Text

Oil Jumps On Hefty Crude Draw

Oil prices rocketed on Wednesday…

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
Download on the App Store Get it on Google Play