• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 12 minutes OPEC Cuts Deep to Save Cartel
  • 15 minutes Venezuela continues to sink in misery
  • 2 hours End of EV Subsidies?
  • 2 hours Maersk's COO statment.
  • 8 hours Citi cuts Apple's price target
  • 9 hours Asian stocks down
  • 4 hours Japan Effectively Bans China’s Huawei, ZTE From Government Contracts, Joining U.S
  • 2 hours GOODBYE FOREIGN OIL DEPENDENCE!!
  • 6 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 13 hours China Builds LNG Icebreaker
  • 5 hours Oil prices may go up, but will be below $70 a barrel in FY19: Hindustan Petroleum Chairman
  • 36 mins Trump accuses Google Of Hiding 'Fair Media' Coverage of him
  • 14 hours Price Decline in Chinese Solar Panels
  • 6 hours Regular Gas dropped to $2.21 per gallon today
Alt Text

Mexico’s Oil Crisis Deepens

Mexico’s state-owned oil company has…

Alt Text

Falling Rig Count Can’t Halt Oil Price Slide

Oil prices continued to fall…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

OPEC Lost $2 Trillion In Oil Price Slump

OPEC members lost over US$2 trillion in revenues and capital expenditure in the oil price crash, the cartel’s director general Mohammed Barkindo said, speaking to media in Nigeria. About half of this was lost revenues as prices tumbled from over US$140 a barrel to below US$30, and the rest was wiped out as cancelled projects.

Barkindo warned that the loss in capital investments was particularly serious as it threatened the future security of oil supply. Acknowledging the economic diversification efforts of OPEC members that were forced on them by the price crash, Barkindo said the importance of oil in helping to achieve this diversification was not to be underestimated.

The OPEC chief was optimistic about the outcome of the group’s concerted market rebalancing effort that should take off some 1.8 million barrels per day from global supply. Indeed, prices have been climbing recently, albeit slightly, thanks to unexpectedly high compliance rates among OPEC members.

The only members that have not yet hit their reduction quotas are Iraq and the UAE, and both have pledged to catch up in the coming months. There is also the growing prospect of cuts being extended into the second half of the year, because of the counter-pressure that U.S. shale producers are applying to prices, which have curbed the upward potential of prices. In the week to February 17, shale producers boosted daily output to more than 9 million barrels.

According to ANZ, as quoted by Reuters, if the cut deal is extended, it will be good for prices. On the other hand, extending the cut will also increase the likelihood of some OPEC members giving in to the temptation to cheat – Middle Eastern producers are already losing market share to exempt co-member Iran and other producers, such as Russia and Angola, whose reduction quotas are much smaller.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • EH on February 28 2017 said:
    Sounds like the Saudis need too CLAAAAW back there old market share, we could keep our oil for emergency use and use there$30 BUCK oil instead,,,what do ya think

Leave a comment




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