• 4 minutes Why Trump Is Right to Re-Open the Economy
  • 7 minutes Did Trump start the oil price war?
  • 11 minutes Covid-19 logarithmic growth
  • 15 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 18 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 6 hours Russia's Rosneft Oil Company announces termination of its activity in Venezuela
  • 2 hours Trump eyes massive expulsion of suspected Chinese spies
  • 1 hour >>The falling of the Persian Gulf oil empires is near <<
  • 2 hours A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 12 hours Where's the storage?
  • 13 mins KSA taking Missiles from ?
  • 1 hour TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 8 hours America’s Corona Tsar, Andrew Fauci, Concedes Covid-19 May Be Just a Bad Flu With a Fatality Rate of 0.1%
  • 12 hours Western Canadian Select selling for $6.48 bbl. Enbridge charges between $7 to $9 bbl to ship to the GOM refineries.
  • 2 mins Dr. Fauci is over rated.
  • 29 mins There are 4 major mfg of hydroxychloroquine in the world. China, Germany, India and Israel. Germany and India are hoarding production and blocked exports to the United States. China not shipping any , don't know their policy.
  • 3 hours Saudi Arabia Can't Endure $30 Oil For Long
  • 12 hours Hillary Clinton tweeted a sick Covid joke just to attack Trump
Alt Text

Have These High-Reward Oil Plays Become Too Risky?

Pipeline Master Limited Partnerships were…

Alt Text

Looming Recession Sparks New Oil Sell Off

Money managers sold some 180…

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

Saudi Oil Minister: OPEC+ Agreement Is Just The Beginning

OPEC’s decision to rein in compliance rates with the 2016 oil production cut deal is “interim”, Saudi Arabia’s Oil Minister Khalid al-Falih said after the meeting as quoted by Kuwait’s news agency KUNA.

Elaborating on his remark, the official said this meant that producers from the cartel were not obliged to strictly adhere to the new production ceiling, which in itself is a vague one, since the official OPEC statement following the Friday meeting did not include a ceiling figure.

All it said was that “the Conference hereby decided that countries will strive to adhere to the overall conformity level of OPEC-12, down to 100%, as of 1 July 2018 for the remaining duration of the above mentioned resolution and for the JMMC to monitor and report back to the President of the Conference.”

Falih further made a point of reasserting Saudi Arabia’s commitment to the deal, despite already abundant evidence to that effect, by saying that OPEC’s number-one producer could lift production by 1 million bpd single-handedly, but it would not do so because “it is an inseparable part of a gathering that functions with solidarity and partnership for stability of the global oil market.”

Unfortunately, it seems that this dedication has not played out as expected: crude oil prices actually jumped last week after the conclusion of the meeting, which was the opposite of what the meeting sought to achieve.

The reason for the jump was that traders either overestimated Russia’s clout with OPEC or simply took the initial suggestions made by Al-Falih and Alexander Novak too literally. The two first started talking about a 1-million-bpd increase, then Novak said Russia will propose 1.5 million bpd more in total production from the signatories to the cut deal, and eventually Al-Falih said the 1-million-bpd figure was “nominal” since not all OPEC members had the spare capacity to increase production.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment
  • Jim on June 25 2018 said:
    Neither Iran or Venezuela have much to do in the oil market. Iran only recently thought they were a player in the market but are back to square 1. Venezuela has been plagued with issues for years now and nothing has changes with that. It's foolish to think they either of those countries of much of an effect on the oil market. Foolish.

Leave a comment




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