• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 12 mins Joe Biden's Presidency
  • 7 mins Biden suspends oil and gas drilling on Federal Lands for 60 days for review.
  • 1 hour So Is COVID a Media Hoax or Not?
  • 5 mins China sends warplanes thru Taiwan airspace. Joe's reponse . . . .
  • 16 hours a In 2020, we produced and delivered half a million cars.
  • 2 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 5 hours Parler’s New Partner Has Ties to the Russian Government
  • 43 mins JACK MA versus Xi Jinping
  • 3 hours GENERAL NORMAN SCHWARZKOPF: The Third Tour
  • 8 hours Thanks to food countersanctiona after 2014 Russia become net exporter of food
  • 3 hours Minerals, Mining and Industrial Ecology
  • 17 hours Did I Miss Something?
  • 21 hours The Debate Starts : Remake Republican Party vs. Third Party
EIA Sees WTI at $56 For Q1 2021

EIA Sees WTI at $56 For Q1 2021

The U.S. crude oil benchmark…

IHS Predicts A Record Year For Renewables In 2021

IHS Predicts A Record Year For Renewables In 2021

This year, renewable installations are…

Egypt Looks To Resume LNG Exports As Prices Rise

Egypt Looks To Resume LNG Exports As Prices Rise

Considering that both of Egypt’s…

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 Sends Mixed Signals About Output Cut Extension

Oil officials gathered to discuss energy matters at this year’s CERAWeek in Houston are giving mixed signals about a possible extension of the production cut deal agreed by OPEC and 11 other producers last year.

Russia’s Energy Minister Alexander Novak, for example, said, as quoted by Reuters, that it was “premature” to discuss an extension beyond the initial June 30 deadline. Novak also reassured media that the 300,000 bpd Russia had agreed to cut from its daily output would be achieved by the end of April.

Reuters also quoted Iraq’s Oil Minister Jabar al-Luaibi as supporting the opinion of prematurity: “It's very premature to talk about any changes or to predict anything.”

Bloomberg, however, had a different quote from Al-Luaibi in response to a direct question whether OPEC should extend the deal. “It’s likely we need to,” Luaibi said.

Obviously, an extension is firmly on the table, at least for OPEC members such as Iraq, which is lagging behind in reaching its new output quota: the country agreed to shave off 210,000 bpd from its daily average but had only gotten as far as 50,000 bpd as of the end of February, according to Bloomberg data.

Angola, another OPEC member that started off among the top compliers, also fell short of its target in February and is now in favor of an extension, according to the head of its state-owned oil company Sonangol, Isabel dos Santos. Unlike most other members, Angola actually boosted its output last month, by 20,000 bpd. Its reduction quota is 80,000 bpd. Related: U.S. Energy Imports From Canada Now Value $53 Billion

Now all eyes will be on Saudi Arabia’s Oil Minister Khalid al-Falih, who is scheduled to speak later today. Saudi Arabia has shouldered a major part of the production cut burden, exceeding its target in both January and February. Last month, the kingdom cut a further 90,000 bpd from its daily average, producing some 9.78 million bpd in all, versus a target of 10.06 million bpd.

An extension is unlikely to sit well with Riyadh in light of this exemplary behavior. As it cuts production, OPEC’s biggest producer is losing market share, even though it recently cut prices for Asian clients to regain some of it.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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