• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 3 hours Sources confirm Trump to sign two new Executive orders.
  • 16 hours CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 7 mins Sometimes I Think Trump Supporters on This Forum Are Russians
  • 4 hours No More Love: Kanye West Breaks With Trump, Claims 2020 Run Is Not A Stunt
  • 10 hours In a Nutshell...
  • 1 hour Better Days Are (Not) Coming: Fed Officials Suggest U.S. Recovery May Be Stalling
  • 16 hours A Real Reality Check on "Green Hydrogen"
  • 5 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 1 day Why Oil could hit $100
  • 1 day Why Wind is pitiful for most regions on earth
  • 2 hours Putin Paid Militants to Kill US Troops
  • 7 hours Where is Alberta, Canada headed?
  • 3 days Coronavirus hype biggest political hoax in history
Big Oil’s Investment Risk Is Spiking

Big Oil’s Investment Risk Is Spiking

Oil majors have been a…

Oil Giant Considers Drastic Move As Pandemic Persists

Oil Giant Considers Drastic Move As Pandemic Persists

Anglo-Dutch oil major Shell is…

Debt Destroys A Shale Giant

Debt Destroys A Shale Giant

Chesapeake has finally succumb to…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

OPEC Won’t Compensate For ‘Small’ Supply Outages

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:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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