• 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.
  • 2 hours Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 7 mins Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 2 hours Instagram Now Banning Photos Of People At Gun Ranges, Claiming They Promote "Violence"
  • 14 hours Let's shut down dissent like The Conversation in Australia
  • 8 hours Famous Manufacturer of Anti-Ethanol Additives Proves Ethanol's Safety and Benefits
  • 13 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 20 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 20 hours Hong Kong protesters appeal to Trump for support.
  • 5 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 10 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 10 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.
  • 13 hours Iran in the world market
Alt Text

Oil Slips On Bearish EIA Inventory Data

Oil prices continued to fall…

Alt Text

The Man That Could Trigger An Iran War

Tensions between Iran and its…

Alt Text

How New Technology Is Revolutionizing Oil & Gas

After years of lagging behind…

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

OPEC Aims For $60-$70 Oil

OPEC members are happy with crude oil prices between US$60 and US$70 per barrel, Equatorial Guinea’s oil minister Gabriel Mbaga Obiang Lima told S&P Global Platts in an interview, contrary to earlier reports saying that the cartel’s leader, Saudi Arabia, alone needs oil quote a bit higher than that, at over US$80 per barrel if it is to avoid another budget deficit this year.

Obiang, however, also said OPEC will still try to convince its partners to extend the production cut deal closed last December until the end of the year, even though Brent crude is already trading above US$60 as is the OPEC basket of crudes. The Oman and Dubai benchmarks, however, are currently slightly below the US$60 threshold.

"$60-$70/b is the price that we all feel comfortable with," Obiang said. "It has been for almost a year like that ... that's really the right price for the producer and the consumer and we can all live with that."

The OPEC official went on to say that "What we all want is stability, we do not want volatility. We do all believe that it is important to extend the agreement to the end of the year to be able to monitor [the oil market]," he said. "We are definitely going to have an extension, we are working on that. Not having it would be a big surprise for everybody."

Regarding Russia’s apparent reluctance to join further cuts, including as expressed by President Putin who earlier this month said Russia is fine with cheaper oil, Equatorial Guinea’s oil minister said "You have to create drama ... but we all agree on the same thing."

More drama, however, was created by two Russian oil executives: the heads of Rosneft and Gazprom Neft, both of whom have called on the government to end the cuts as was originally planned, at the end of June, so they can start raising their production again. Rosneft’s Sechin even threatened that he would seek compensation from the Kremlin if it decided to join an extension.

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 June 18 2019 said:
    The overwhelming majority of OPEC members particularly Saudi Arabia need an oil price higher than $80 a barrel to balance their budgets.

    Equatorial Guinea with an estimated production of 199,000 barrels a day is a very small player in OPEC and can’t and shouldn’t therefore speak on behalf of the organization.

    OPEC+ will have to extend the production cuts to the end of the year and even consider making deeper cuts in the face of an escalating trade war between the US and China adversely impacting global oil demand and prices.

    And while Russia could live with an oil price of $40 a barrel, President Putin is going to agree to an extension of the production cuts despite opposition from major Russian oil companies. In so doing, he will be specifically helping Saudi Arabia and consolidating Russia’s strategic relations with it and also extending his growing influence over the global oil market through his cooperation with OPEC.

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

Leave a comment




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