• 2 minutes Oil prices going down
  • 11 minutes China & India in talks to form anti-OPEC
  • 16 minutes When will oil demand start declining due to EVs?
  • 3 mins Oil prices going down
  • 15 hours We Need A Lasting Solution To The Lies Told By Big Oil and API
  • 15 hours Another WTH? Example of Cheap Renewables
  • 3 days Bullish and bearish outlook for oil
  • 3 hours What If Canada Had Wind and Not Oilsands?
  • 2 days Trump Hits China With Tariffs On $50 Billion Of Goods
  • 2 days When will oil demand start declining due to EVs?
  • 2 days Russia's Rosneft 'Comfortable' With $70-$80 Oil Ahead of OPEC Talks
  • 3 days Rolls Royce shedding 4,600 jobs
  • 15 hours The Wonderful U.S. Oil Trade Deficit with Canada
  • 8 hours China & India in talks to form anti-OPEC
  • 3 hours Australia mulls LNG import
  • 8 hours No LNG Pipelines? Let the Trucks Roll In
  • 14 hours The Permian Mystery
  • 1 day Gazprom Exports to EU Hit Record
  • 3 days OPEC soap opera daily update
Alt Text

Venezuela Won’t Have Enough Oil To Export By 2019

GlobalData recently projected that Venezuela’s…

Alt Text

Russia Boosts Oil Production Before OPEC Meeting

Russia pumped almost 11.1 million…

Alt Text

The Oil Giant That Saw Its Cash Reserves Plunge 90%

India’s top oil exporter has…

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

Putin

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:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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