• 3 minutes This Battery Uses Up CO2 to Create Energy
  • 5 minutes Shale Oil Fiasco
  • 9 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 12 minutes Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 3 mins Which type of Hegemony will China follow
  • 17 hours Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 5 mins China gets caught?
  • 7 hours Demand for Diesel vs. Oil
  • 20 hours Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 3 hours Us Shale: Moving the US shale revolution forward
  • 2 days Here is Why People Lose Money Trading Natural Gas
  • 21 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 1 day Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 2 days Let’s take a Historical walk around the Rig
  • 2 days US Shale: Technology
  • 2 days Governments that wasted massive windfalls

Predicting The Result Of The OPEC+ Meeting

OPEC

Media reports have been awash with speculation this week, some pointing to the inevitability of a production cut extension, some highlighting the growing tensions in the Russia-Saudi Arabia-Iran triangle and some advocating a gradual return towards a free-for-all competition against the background of Iran and Venezuela sanctions. If one is to analyze the current economic state of leading oil producers, then everything is indicative of an OPEC+ extension – Russia, Saudi Arabia, Iraq and others are afraid of oil prices tanking, all the more so after the developments of the last couple of weeks. But let’s look at them one by one, so that you see it for yourself.

First, one has to highlight how effectively did OPEC+ manage to adhere to the set production caps. Whenever output discipline was needed, all major producers complied with the Vienna Agreements; whenever the oil market allowed for a production ramp-up, Saudi Arabia, Russia and the UAE did so, only to scale it back under the 2019 production ceiling (it took Russia 3 more months than others, yet this came as no surprise as Moscow generally shrinks from cutting rates in the winter). The exception only proves the rule - Iraq has been something of an enfant terrible of OPEC but encountered little public scorn due to its post-Islamic State conditions and strategic position vis-à-vis the Iran “problem”.

The root cause for this author’s optimism with regard to a new OPEC/OPEC+…




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