• 4 minutes Will Libya Ever Recover?
  • 9 minutes USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 13 minutes What Can Bring Oil Down to $20?
  • 16 minutes Venezuela continues to sink in misery
  • 23 hours Alberta govt to construct another WCS processing refinery
  • 10 hours Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 1 hour Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 14 hours Instead Of A Withdrawal, An Initiative: Iran Hopes To Agree With Russia And Turkey on Syrian Constitution Forum
  • 1 day Let's Just Block the Sun, Shall We?
  • 16 hours Water. The new oil?
  • 11 hours Storage will in time change the landscape for electricity
  • 2 days Quebecans Snub Noses at Alberta's Oil but Buy More Gasoline
  • 57 mins Anti-pipeline activism isn't generating more investment in renewable energy
  • 14 hours Regular Gas dropped to $2.21 per gallon today
  • 3 days OPEC Cuts Deep to Save Cartel
  • 2 days U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Russia, Saudi Arabia: The OPEC Deal Works Fine

Russia and Saudi Arabia, the biggest participants in the international oil production cut deal, seem to be still confident that it will achieve the results everyone in OPEC and its partners is hoping for and bring the market back to balance by the end of the first quarter of 2018.

Remarks from Russia’s Alexander Novak and Saudi Arabia’s Khalid al-Falih at the Astana Expo 2017 in Kazakhstan this weekend suggest as much. Media quoted the Russian minister as saying that there was no need to review the agreement at this time, because it was too early to decide on anything. Also, he said that although supply is still in excess of demand, it should fall to the five-year average over the next few quarters – probably by the end of March 2018, when the extended agreement expires.

Al-Falih, for his part, told media at the Astana Expo that the decline in global inventories that has already began will speed up in the next three to four months. The statement comes despite an actual increase in global supplies: last week, the Energy Information Administration reported a surprise build of 3.3 million barrels in U.S. stockpiles, which pushed already depressed international prices further down.

The number of drilling rigs in the U.S. is also on the rise, for the 21st consecutive week as of June 9. For that latest week, shale drillers added 11 rigs. Novak told CNBC that the partners in the cut deal foresaw this production increase, adding that “Today we have to monitor the situation, and analyze the current developments. In my opinion, the deal is highly effective, and as for shale production recovery, we have to monitor it.”

Al-Falih’s remarks on the topic were in the same vein. He said “Weekly data goes up and down. Sentiments in the financial markets of course swing like a pendulum. But that doesn't change the fundamentals. What we can influence as oil producers is the fundamentals, the level of supply which will result in drawing down the inventories.”

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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