• 5 minutes Iran Says It Arrested 17 CIA Spies, Some Sentenced To Death
  • 9 minutes Will We Ever See 100$+ OIL?
  • 13 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 13 mins Platts says if Iran's 2 mm bbls exports comes back on market oil goes to $40 . . . What about new Permian pipelines 2.47 mm bbls coming ? . . . WHAT IF BOTH IRAN AND PERMIAN TOTAL 4.47 mm added bbls . . . OMG !
  • 22 hours Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 8 hours Today President Trump Questioned U.S. Policing the Straits of Hormuz for Rich Asian Countries. Allies Britain and Japan were asked to participate. Said NO. US spends $100 Billion/year Protecting Mideast Shipping Lanes!
  • 15 hours Renewables provided only about 4% of total global energy needs in 2018
  • 3 hours So You Think We’re Reducing Fossil Fuel? — Think Again
  • 31 mins Millions of Barrels of Iranian Oil Are Piled Up in China’s Ports
  • 11 hours Oil Giant Saudi Arabia Is Set to Start First Wind-Power Plant
  • 7 hours N.Y. Governor Signs Climate Bill
  • 1 day How is E&P of Marginal Oil on the UKCS Similar to the Shale Oil Operations in the US?
  • 11 hours EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 4 hours U.S. Administration Moves To End Asylum Protections For Central Americans
  • 1 day Berkeley becomes first U.S. city to ban natural gas in new homes
  • 2 days Shale Oil will it self destruct?
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’s Giants Declare Support For New Deal

After weeks of speculation, it’s official: Russia, Saudi Arabia, and Iraq have declared their support for an extension to the oil production cuts OPEC and its partners agreed last December to regulate global supply and prices.

Reuters reported Russia’s President Vladimir Putin had announced the latest update ahead of the OPEC meeting beginning today in Vienna, saying Russia had agreed with Saudi Arabia to extend the cuts by six to nine months. The cuts total 1.2 million bpd, of which OPEC is supposed to cut 800,000 bpd. However, with U.S. sanctions against Venezuela and Iran have reduced OPEC’s total supply by a lot less: energy data provider Kayrros said earlier this month the overhang was as much as 90 million barrels above the average for 2018.

The decision to extend the cuts is not particularly surprising. With relentlessly rising U.S. oil production, OPEC has few good moves left, if any. Russia has repeatedly noted it would be happy with lower oil prices than its Middle Eastern partners but even so it has once again agreed to continue cutting. Some saw in this a deal, in which the Middle Eastern partners—notably Saudi Arabia—would compensate Moscow for the inconvenience of having to sell less oil with investment contracts in energy and other sectors.

While oil prices jumped on the news it remains to be seen whether this jump will turn into a full-fledged rally of the sort Middle Eastern producers need to balance their budgets. Judging by their failure to do so despite the cuts until now, the chances of Brent hitting US$70 a barrel, let alone US$80, are slim, especially as worry about the growth of the global economy persists. The U.S.-China trade war remains the major driver of this worry and even a recent announcement the sides had agreed to restart their talks could not do much for oil prices or overall market sentiment

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
Download on the App Store Get it on Google Play