• 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
  • 6 hours Indonesia Stands Up to China. Will Japan Help?
  • 5 hours Shale Oil Fiasco
  • 6 hours Might be Time for NG Producers to Find New Career
  • 20 mins We're freezing! Isn't it great? The carbon tax must be working!
  • 9 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 11 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 3 hours Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 10 hours Beijing Must Face Reality That Taiwan is Independent
  • 10 hours China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 5 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 1 day US Shale: Technology
  • 2 days Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
Alt Text

U.S. LNG Booms As Natural Gas Prices Crash

Despite the recent collapse in…

Alt Text

Why BlackRock Is ‘Going Green’

Investor pressure on fossil fuel…

Alt Text

China’s Cheap Electric Vehicles Could Disrupt Global Markets

China’s legion of electric vehicle…

Editorial Dept

Editorial Dept

More Info

Premium Content

OPEC’s Only Hope

The trade war continues to weigh heavily on the oil market as forecasts paint a gloomier picture for oil prices with every passing week. This week, analysts have again revised downward their oil prices as they see an economic slowdown as a result of the trade war. OPEC’s over-compliance with the production quota and tensions in the Middle East over Iran's oil sanctions have been an insufficient catalyst for propping up oil prices.

OPEC Can’t Wait for the Trade War to Be Over

OPEC still finds itself in rather a tight spot wedged between Brent crude prices that are almost back to where they started at the beginning of the year and its own production throttling that has not packed enough of a punch to boost oil prices.

OPEC’s been down this road before. Remember the start of its production cuts in late 2016? Brent was trading around $56 at the time. One cut and two extensions later and we’ve gained $3 per barrel. But what has OPEC lost? Market share. Saudi Arabia’s, mostly - and were it not for Iran and Venezuela, Saudi Arabia would have had to cut a lot more as part of its “whatever it takes” promise.

But this perception of a global overhang in crude inventories has been too much for the cartel to manage successfully. The trade war, which most analysts agree will have a negative impact on the economy, is constantly pushing prices down while OPEC is trying to lift them up.

So now what? This tit-for-tat US-China…




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