• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 2 hours WTI @ 67.50, charts show $62.50 next
  • 11 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 7 mins Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 59 mins Venezuela set to raise gasoline prices to international levels.
  • 12 hours Mike Shellman's musings on "Cartoon of the Week"
  • 7 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 41 mins The Discount Airline Model Is Coming for Europe’s Railways
  • 16 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 1 hour Pakistan: "Heart" Of Terrorism and Global Threat
  • 23 hours Corporations Are Buying More Renewables Than Ever
  • 11 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 23 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 12 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 13 hours France Will Close All Coal Fired Power Stations By 2021

Breaking News:

SEC Tesla Probe Not New: Report

Alt Text

Keystone XL Delayed…Again

The Keystone XL saga has…

Alt Text

Goldman: Trade War Won't Crash Oil Prices

In spite of the impact…

Alt Text

The Oil Bulls Are Back

Oil markets had a bullish…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

Kuwait: Iran May Keep Production Level If OPEC Extends Cuts

OPEC flag

Iran will likely be allowed to maintain its current oil production levels should OPEC decide next month to extend the output cut deal for another six months, Kuwait’s Oil Minister Essam Abdulmohsen Al-Marzouq told Bloomberg in an interview on Wednesday.

In OPEC’s agreement from November, Iran was allowed to slightly raise its production and keep it capped at 3.797 million bpd between January and June, while other fellow OPEC members – except for exempt Libya and Nigeria – all had to cut their respective production.

According to OPEC’s secondary sources, which the cartel considers the legitimate estimates for measuring the production deal, Iran is largely keeping with its pledge, and its output in March stood at 3.790 million bpd.

“I think they will keep the same level if the deal is extended,” said Al-Marzouq, who is chairman of the Joint Ministerial Monitoring Committee (JMMC) supervising the implementation of the cuts that OPEC and 11 non-OPEC nations had agreed to.

“They are not cutting, but they aren’t increasing output from what was agreed on,” Al-Marzouq said, referring to Iran.

Al-Marzouq was one of the first (and loud) voices within the cartel that hinted at an output deal extension beyond June.

Now the Kuwaiti minister told Bloomberg that he expects demand to improve and draw down more inventories in the second half this year.

Meanwhile, OPEC Secretary-General Mohammad Barkindo tried to reassure the markets (again) that the organization is getting closer to re-balancing the oil market. “Our collective action will continue to prove effective,” Barkindo said in a speech, as quoted by Bloomberg.

Analysts, however, are not buying the latest rhetoric coming out of OPEC and Middle Eastern producers, and expect oil prices to continue to be vulnerable, in light of rising U.S. shale production. Related: Oil Prices Edge Lower As Imports Keep Inventories Buoyed

“Looking at the latest price reactions, one might conclude that the only reason for the previous price rise was the expectation of further production cuts on the part of OPEC,” Commerzbank strategist Carsten Fritch told Reuters.

Saudi Arabia’s Energy Minister Khalid Al-Falih reportedly said earlier this week in Riyadh that “it is premature to talk about extending the cut”.

OPEC is meeting on May 25 to discuss a potential extension of the cuts.

By Tsvetana Paraskova for Oilprice.com

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