• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 12 hours Shale Oil Fiasco
  • 4 hours Might be Time for NG Producers to Find New Career
  • 36 mins We're freezing! Isn't it great? The carbon tax must be working!
  • 2 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 4 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 4 hours Indonesia Stands Up to China. Will Japan Help?
  • 1 day Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 1 day Wind Turbine Blades Not Recyclable
  • 4 hours Beijing Must Face Reality That Taiwan is Independent
  • 12 hours US Shale: Technology
  • 1 day Denmark gets 47% of its electricity from wind in 2019
  • 1 day Prototype Haliade X 12MW turbine starts operating in Rotterdam
Alt Text

Hydrogen Costs Could Be Set To Plunge By 50%

Hydrogen, while still expensive today,…

Alt Text

Goldman: China Coronavirus Could Push Oil Down By $3

The outbreak of a coronavirus…

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 Number Two Suggests Deeper Oil Output Cuts

OPEC and its partners will discuss the possibility of adding another 400,000 bpd to its oil production cut during this week’s meeting, Iraq’s Oil Minister Thamer al-Ghadban told a local media outlet.

"OPEC and its allies will look at increasing the current production cuts by approximately 400,000 barrels a day, to 1.6 million barrels a day," al-Ghadban said, essentially confirming rumors that OPEC, Russia and their smaller partners may heed calls for deeper cuts to prop up prices.

However, discussing the topic does not necessarily mean it will be agreed. Not all OPEC producers want to cut deeper, and Russian oil companies are close to the end of their tether with the current cuts, so sentiment there will not be favorable for additional reductions in output, either.

There are currently two main scenarios that OPEC, Russia and their partners will discuss—either roll over the cuts through June next year when they meet early next month, or postpone a decision on the deal for early 2020, before the current cuts expire in March and again, roll over the production restrictions until June. In other words, there is no official confirmation from the cartel that deeper cuts are on the agenda.

“It is more likely that we will extend the agreement in December to send a positive message to the market. The Saudis don’t want oil prices to fall, they want to put a floor under the prices because of the [Aramco] IPO,” a source from OPEC told Reuters earlier this month.

Russia, on the other hand, continues to exceed its production quota under the OPEC+ agreement. It had committed to produce 11.19 million bpd, but this month, like most of the year, it produced more, with the average for November 1-26 at 11.24 million bpd, according to official data.

In other words, even if deeper cuts are agreed, chances are they will not be implemented.

OPEC meets on Thursday in Vienna, with the meeting with its external partners scheduled for Friday.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment
  • Mamdouh Salameh on December 02 2019 said:
    The 400,000 barrels a day (b/d) that the Iraqi oil minister is suggesting adding to the production cuts are equivalent to the volume that Iraq and Nigeria have failed to cut from their production under the OPEC+ production cut agreement.

    If both Iraq and Nigeria honour their share of the cuts, there will be no need for OPEC+ to consider deepening the cuts.

    OPEC + should only agree to extend the current production cuts by a few months but should never consider deepening them because such a measure is futile while the trade war is going on as it ends up losing market share with no positive impact on prices. Furthermore, Russia will never agree to that.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London
  • jone al sharon biriyani indian on December 03 2019 said:
    the world today

    people with no science background are discussing oil/energy policy. worse these are apppointed officials. simiallry rag tag road side hiippies single moms woiht no education protesting cllimate change. as if these moms know anythign. they are forced into this by these green peace (liberaal funded) organisation.

    People of the workld must realise the real probem/real criminals is Bush and his CIa network. this will hv to be dismantled to find cure fro all problem including that of diseases and other fruad.


    fianlly, so amny news about oil prices/prodn like this some street foodd review. so lightly the matter is discussed.
    no one has indepth (pun intendted) klnowldge.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play