• 6 minutes Can the World Survive without Saudi Oil?
  • 10 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 15 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 1 hour U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 57 mins Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 4 hours WTI @ $75.75, headed for $64 - 67
  • 9 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 9 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 12 hours EU to Splash Billions on Battery Factories
  • 19 mins U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 9 hours China Thirsty for Canadian Crude
  • 11 hours Iranian Sanctions - What Are The Facts?
  • 14 hours Dow logs 830-point loss
  • 11 hours Two Koreas: U.N. Command Wrap Up First Talks On Disarming Border
  • 10 hours Shell, partners approve huge $31 billion LNG Canada project. How long till Canadian Federal government Environmentalates it into the ground?
  • 11 hours Threat: Iran warns U.S, Israel to expect a 'devastating' revenge
Alt Text

The Dark Horse Of The Oil Price Rally

Vietnam is set to break…

Alt Text

Oil’s $133 Billion Black Market

With oil prices back on…

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

OPEC Won’t Compensate For ‘Small’ Supply Outages

russia oil drilling

OPEC is closely following the protests in Iran and the economic struggles of Venezuela, but the cartel will not intervene in the market by ramping up supply unless significant prolonged production disruptions in those two countries occur, Reuters reported on Monday, citing a senior OPEC source from a major Middle Eastern producer.

“Even if there was a supply disruption (from Iran or Venezuela)... OPEC will not raise output,” the senior OPEC source told Reuters.

“OPEC’s policy is to bring inventories down to their normal levels and will stay the course, unless the disruption in supply of something like 1,000,000 barrels per day persists for more than a month, and causes shortages of crude supply to consumers,” the source noted.

Oil prices ended 2017 on a higher note, with the Forties Pipeline shutdown and a Libyan pipeline outage in the second half of December. Then at the beginning of 2018, the price of oil continued to rise as protests in Iran spooked the market, with oil prices making their best start to a year since 2014.

Although analysts don’t see Iranian unrest directly hindering Iran’s oil production, some think that the protests and their clampdown could embolden U.S. President Donald Trump to refuse to waive the sanctions on Iran’s oil and energy industries later this month.

According to the senior OPEC source who spoke to Reuters, additional U.S. sanctions on Iran’s oil industry are possible, but their impact is difficult to assess. Related: Europe Becomes Victim of Russia’s Newest Oil Strategy

Venezuela, for its part, is woefully short on cash, gasoline, and pretty much everything as its economy continues to collapse while President Nicolas Maduro tries to service sovereign bond payments and those of the state oil firm PDVSA. Venezuela’s oil production has been falling steadily over the past months, and OPEC’s crude oil production remained largely unchanged from November in December, mostly thanks to a 50,000-bpd decline in Venezuela’s production, a Bloomberg survey showed last week.

According to an S&P Global Platts survey released on Monday, Venezuela’s oil production dropped by even more than the Bloomberg survey showed—100,000 bpd on the month in December to 1.70 million bpd—the lowest level since a major strike affected the country’s industry in December 2002-February 2003. Not counting strike-affected months, Venezuela’s crude oil production was last this low in August 1989. Experts think that the chances of Venezuela lifting its oil production in the near term are very slim, according to S&P Global Platts.

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