• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 8 hours Could Venezuela become a net oil importer?
  • 32 mins Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 17 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 12 hours Why is permian oil "locked in" when refineries abound?
  • 8 hours Gazprom Exports to EU Hit Record
  • 1 hour Oil prices going down
  • 8 hours Could oil demand collapse rapidly? Yup, sure could.
  • 8 hours Oil Buyers Club
  • 10 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 1 day Teapots Cut U.S. Oil Shipments
  • 11 hours EVs Could Help Coal Demand
  • 6 hours Saudi Arabia turns to solar
  • 1 day Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 18 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 1 day Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
Alt Text

The Oil Giant That Saw Its Cash Reserves Plunge 90%

India’s top oil exporter has…

Alt Text

Russia Boosts Oil Production Before OPEC Meeting

Russia pumped almost 11.1 million…

Alt Text

Permian Bottlenecks Begin To Bite

The pipeline bottlenecks in the…

Matt Smith

Matt Smith

Taking a voyage across the world of energy with ClipperData’s Director of Commodity Research. Follow on Twitter @ClipperData, @mattvsmith01

More Info

Trending Discussions

Crude Tanks As OPEC Refrains From Cutting Production

Crude Tanks As OPEC Refrains From Cutting Production

Given it is ‘National Dice Day’, it is apt that OPEC has left it to chance how the market will react to an adjustment to its production quota. The cartel appears to be setting an output ceiling of 31.5 million barrels per day, as opposed to the prior arbitrary quota of 30 million.

This does not mean the cartel is raising production; it is instead putting its production target more in line with reality. Nonetheless, the market wonders whether this includes new member Indonesia, or whether it is to account for impending Iranian barrels returning to market. Either way, the crude complex is getting absolutely trounced.

A couple of hilarious tidbits have come from the two key countries at this meeting: Saudi and Iran. The first one is from the inimitable Saudi oil minister, Ali al-Naimi, who said ‘there is absolutely no disagreement anywhere (in OPEC)’. Which is rather hard to believe. The second is from Iran, who has said it can join future OPEC output cut discussions…once production is back up to 4 million barrels per day. Related: Oil Majors See Opportunity In Climate Action

All the while, Venezuela had been calling for a production cut of 5%. One quick peek at their economy and you can understand why; oil accounts for 95% of its export revenues, hence the precipitous drop in oil means the evaporation of much of its revenues. Inflation this year is at a surreal 124%, while its economy is set to drop by 10% – the worst performer on the planet:

Our second doozie of the day comes in the form of Nonfarm Friday, which is basically acting as a rubber stamp to endorse a US interest rate hike this month. Job creation for November came in at 211,000, above consensus by 11k and with an upward revision to October too. The unemployment rate has held at 5%, while the participation rate has edged up from a 38-year low to 62.5%. Related: Why Is The U.S. Reluctant To Bomb ISIS Oil Fields?

Finally, the chart of the day comes from a piece about Continental Resources, who were so bullish last year that they unwound their hedges for 2014 – 2016 production last October at $95/bbl. While closing out the hedges reaped an immediate gain of $433 million, if the hedges had remained in place, the company would be making a $2.8 million gain each day. This adds up to over $1 billion dollars over the last year or so.

By Matt Smith

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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