• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 6 hours Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 1 hour Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 6 hours Instagram Now Banning Photos Of People At Gun Ranges, Claiming They Promote "Violence"
  • 2 hours Let's shut down dissent like The Conversation in Australia
  • 2 hours Pepe Escobar: “How The Houthis Overturned The Chessboard”
  • 12 hours Famous Manufacturer of Anti-Ethanol Additives Proves Ethanol's Safety and Benefits
  • 18 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 1 day Hong Kong protesters appeal to Trump for support.
  • 1 day Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 14 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 9 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 14 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
Alt Text

Weakening Shale Productivity “VERY Bullish” For Oil Prices

After years of increasing productivity…

Alt Text

Oil Rises After EIA Reports Crude Inventory Draw

Oil prices rose further on…

Alt Text

Saudi Aramco: We Never Asked Iraq For Extra Oil

Saudi Arabia’s oil giant Aramco…

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 Output Cut Could Extend Into 2018

The production cut agreement that OPEC closed last year in a bid to improve oil prices could be extended for more than six months, Saudi Arabia’s Oil Minister Khalid al-Falih said at the Asia Oil and Gas Conference that opened today in Malaysia.

“Based on the consultations I have had with participating members I am rather confident the agreement will be extended into the second half of the year and possibly beyond. The producer coalition is determined to do whatever it takes to achieve our target of bringing stock levels back to the five-year average,” the Kingdom’s top oil man said as quoted by Bloomberg.

(Click to enlarge) 

The comment comes after crude oil recorded one of its worst weeks in recent months, with West Texas Intermediate dipping below US$45 a barrel on Friday – the lowest since August last year. Although Al-Falih’s comments should have sprinkled some water on the wilting hopes of oil bulls, prices have yet to reflect this.

It is possible, however, that the positive effect will be transitory, as the signals coming from the U.S. are unequivocal: production is growing and it will continue to grow. The U.S. is not the only producer intent on continuing with the ramp-up. Iran is also eager to boost its crude production, planning to expand its daily production capacity to 5.7 million barrels.

Related: All Eyes On Saudi Arabia As OPEC Begins To Unravel

OPEC is meeting in Vienna on May 25th to discuss the extension, and analysts seem to be unanimously agreed that it will approve the extension. Several cartel members have already declared their support for the extension, including exempt Iran and Nigeria, as well as Iraq and Kuwait, and there don’t seem to be any obvious factors that could justify an end to the cut at the initial deadline, June 30th.

However, worry remains that even an extension will do no good—or little good—as U.S. oil output continues to rise, with the Energy Information Administration forecasting the 2017 daily average at 9.2 million barrels, rising to 9.9 million bpd in 2018.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play