• 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
  • 28 mins WTI @ 67.50, charts show $62.50 next
  • 7 hours Mike Shellman's musings on "Cartoon of the Week"
  • 3 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 1 min Venezuela set to raise gasoline prices to international levels.
  • 4 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 6 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 7 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 5 hours Corporations Are Buying More Renewables Than Ever
  • 3 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 21 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 21 hours California Solar Mandate Based on False Facts
  • 10 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 10 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
Alt Text

Deciphering The New Caspian Agreement

The Caspian deal is a…

Alt Text

Analysts: SPR Release Won’t Lower Gasoline Prices

U.S. drivers are unlikely to…

Alt Text

The One Oil Industry That Isn’t Under Threat

While plastic has been the…

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 President: Oil Cut Extension Hasn’t Been Discussed

Oil

There has been no talk about extending crude oil production cuts into next year, OPEC’s president, UAE energy minister Suhail al-Mazrouei, said ahead of this year’s CERAWeek. “We feel there is still some market overhang,” he told Reuters.

Last month, OPEC said in its Monthly Oil Market Report that based on OECD commercial stocks numbers from December, “In line with the existing overhang, the market is only expected to return to balance towards the end of this year.”

Yet at the same time, the cartel has been discussing alternative ways of measuring global supply to replace the OECD stockpiles estimate, which OPEC feels does not paint an accurate picture of reality. Even so, IEA data shows that OPEC and its partners led by Russia have been overperforming: the overhang in OECD oil inventories has shrunk to just 52 million barrels from 264 million barrels a year ago.

There is a problem with this metric, however. The OECD five-year average is a moving target, and in the last years it has had to reflect the substantial oversupply brought about by the shale revolution in the United States. In other words, the five-year average now is very different than the five-year average from, say, the middle of last decade, hence the talk about using another, preferably broader, metric. Related: Can Russia & China Rescue Venezuela?

Yet there is consensus that the cut deal has worked even better than expected. However, this has not been the result of a voluntary effort, but rather a combination of Saudi Arabia cutting much more than agreed to make up for lower compliance elsewhere in OPEC and Venezuela suffering its worst production rates in three decades.

Al Mazrouei said OPEC was discussing ways to help its crisis-stricken member restore its oil production, which has fallen 13 percent since the end of 2016 to 2.07 million bpd. This, oddly enough, is above the target set for the country in the OPEC agreement. The target is 1.972 million bpd.

By Irina Slav 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