• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 1 day The Discount Airline Model Is Coming for Europe’s Railways
  • 5 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 13 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 6 mins Saudi Fund Wants to Take Tesla Private?
  • 2 days Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 56 mins Renewable Energy Could "Effectively Be Free" by 2030
  • 9 hours Starvation, horror in Venezuela
  • 18 hours Venezuela set to raise gasoline prices to international levels.
  • 2 days Batteries Could Be a Small Dotcom-Style Bubble
  • 12 hours Are Trump's steel tariffs working? Seems they are!
  • 1 day Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 2 days France Will Close All Coal Fired Power Stations By 2021
  • 2 days Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
Alt Text

The Oil Bulls Are Back

Oil markets had a bullish…

Alt Text

Are The Saudis Involved In The Tesla Buyout Plan?

Saudi Arabia’s Public Investment Fund…

Alt Text

Deciphering The New Caspian Agreement

The Caspian deal is a…

Editorial Dept

Editorial Dept

More Info

Trending Discussions

Are Oil Stocks In For A Record Year?

Eagle Ford

Friday December 2, 2016

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

1. OPEC reaches historic deal

(Click to enlarge)

- In a Brexit or Trump-style shock to the markets, OPEC defied expectations with an agreement that actually has some teeth to it. The cartel will cut its collective output from just over 33.6 million barrels per day (mb/d) to 32.5 mb/d.
- Russia will also cut 300,000 barrels per day, although a Russian official said the cuts would take effect gradually. Non-OPEC producers will cut a combined 600,000 barrels per day as part of the agreement.
- The 1.2 mb/d cut from OPEC and the 0.6 mb/d cut from non-OPEC will lead to a global supply deficit as soon as early 2017. There are a lot of inventories that need to be worked through, but if the deal is actually implemented (and there are still question marks surrounding implementation from a group that has notoriously cheated on agreements), inventories will drawdown in earnest next year.
- Oil prices could rise to $60 per barrel in the first half of 2017, analysts say.
- But, investors should be cautious: a quick response from U.S. shale could add 800,000 barrels per day next year, according to Goldman Sachs, enough to kill…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





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