• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 8 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Hopes Are Dashed For International Oil Companies In North Iraq
  • 8 hours 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 16 hours The United Nations' AGENDA 2030 - The vision for One World Governance ...an article by the famous Dr Robert Malone
  • 4 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 20 hours "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
  • 4 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day The Federal Reserve and Money...Aspects which are not widely known
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Europe's Energy Crisis Spills Over Into Food

Europe's Energy Crisis Spills Over Into Food

Excessively high energy prices in…

IEA Sees Higher Oil Demand This Year

IEA Sees Higher Oil Demand This Year

Global crude oil demand will…

Are Oil Prices Set For A Comeback?

Are Oil Prices Set For A Comeback?

Crude prices have fallen significantly…

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

Has OPEC Found Its Oil Price Sweet Spot?

Most OPEC members seem to be quite happy with where oil prices are now, according to the energy minister of one of the smaller members of the cartel.

"We all probably would like higher [oil prices] because we have more revenue, but we are conscious this is not good for the economy," Equatorial Guinea’s Gabriel Obiang Lima told media, as quoted by S&P Global Platts. "It depends on who you ask, but I think the consensus is that that $60-70/b is OK for producers and for consumers," he said.

The comments by the Equatorial Guinea official seem to reflect the general sentiment on oil markets. As Lima noted, anything below $60 begins to put a strain on most OPEC budgets. Anything above $70 prompts complaints from large consumers such as India and, notoriously, the U.S., with President Trump taking to Twitter several times during his term to insist that OPEC take care to push prices lower.

However, it appears that while happy with current prices, many OPEC members have production expansion plans. This includes Equatorial Guinea, which at the moment pumps around 120,000 bpd. The current output is expected to be boosted by another 20,000 bpd by the end of the year despite OPEC-wide production cuts.

Iraq also has plans for a production boost and so do Nigeria and Libya, to mention but a few. At the same time, non-OPEC supply is set to continue growing even though many analysts expect U.S. production growth to slow down. Norway, Brazil, Canada, and the newcomer Guyana are among the oil producers that are expected to boost their production substantially this year.

Add to this Russia, which has indicated clearly enough it would rather boost production than keep cutting it, and OPEC may be facing important decisions to be made later this year.

The cartel and its partners are meeting in march to discuss the progress of their production cut agreement and its future.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on January 13 2020 said:
    Don’t believe a word of it. OPEC members with the exception of Kuwait and Qatar need oil prices above $80 a barrel to balance their budgets.

    The oil minister of Equatorial Guinea’s Gabriel Obiang Lima and those in the global oil market who support an oil price ranging from $60-$70 should take a master class in the economics of oil. They should study in particular the 2014 oil price crash and its adverse implications for the global economy.

    They will then learn that the global economy can’t reconcile itself with low oil prices. The reason is that the three biggest chunks that make up the global economy, namely the global oil industry, the economies of the oil-producing countries and global investments will be undermined as we have seen in the aftermath of the 2014 oil price crash.

    A fair oil price ranges from $100-$120 a barrel. Such a price stimulates the global economy by enhancing global investments, enables the oil-producing nations to earn more revenue and thus balance their budgets and expand expenditure and investments and also enables the global oil industry to balance its books and finance more projects around the world.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News