• 4 minutes Why Trump will win the wall fight
  • 7 minutes Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 13 mins Climate Change: A Summer of Storms and Smog Is Coming
  • 12 hours North Korea's Kim To Travel To Vietnam By Train, Summit At Government Guesthouse
  • 13 hours Oil imports by countries
  • 11 hours America’s Shale Boom Keeps Rolling Even as Wildcatters Save Cash
  • 12 mins Itt looks like natural gas may be at its lowest price ever.
  • 17 hours NZ Oil, Gas Ban Could Cost $30 Bln
  • 13 hours AI Will Eliminate Call Center Jobs
  • 2 hours US-backed coup in Venezuela not so smooth
  • 20 hours Solar and Wind Will Not "Save" the Climate
  • 21 hours Ayn Rand Was Right
  • 19 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 41 mins Some Good News on Climate Change Maybe
Alt Text

Oil Majors Double Down On Battery Investment

Oil majors are increasingly interested…

Alt Text

How Long Will This Oil Rally Last?

Oil prices have been trading…

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 Will Stick To The OPEC Deal

Russia will continue to comply with the OPEC oil production cut deal until the deadline set in the extension agreement last November and even into 2019 if need be, Russia’s Energy Minister Alexander Novak said.

Novak added, however, that Russia is also on board with an earlier end to the deal, should its partners decide it was the best course of action to follow.

In an interview with Bloomberg, the official also reiterated that the best approach to ending the deal would be a gradual withdrawal, which could begin in the second half of this year, so discussions of the exit strategy of the partners in the deal could take place at their meeting in June.

For the umpteenth time, Novak said he was not bothered by the growing shale oil production in the United States, or the increasingly likely possibility that the United States would become the largest oil producer in the world, overtaking Russia.

Novak’s remarks come amid growing doubts that OPEC will have the patience to see the deal through its original end in December this year. With U.S. production consistently rising and predictions that it will hit 11 million bpd before the year’s end, it must be hard for rival producers to see a growing portion of this production go into markets where they hold a significant share.

Related: Heavy Sweet Crude Is Heading For A Supply Crisis

Yet some short-term analyses see a possibility that the oil market could slip into a deficit despite the growing U.S. production. Notably, the International Energy Agency said in its latest monthly report on oil that Venezuela’s production decline rate could accelerate this year and “without any compensatory change from other producers it is possible that the Latin American country could be the final element that tips the market decisively into deficit.”

This should be good news for OPEC and its partners in the deal, or maybe a mixed blessing as prices would certainly jump and boost U.S drillers’ motivation to continue expanding production. On the other hand, higher oil prices would help smooth out the exit strategy of the pact.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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