• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 6 hours Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 1 day Did China cherry-pick the factors that affected the economic slow-down?
  • 1 day "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 1 hour Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 4 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 4 hours NordStream2
  • 4 days Nord Stream - US/German consultations
  • 410 days Class Act: Bet You've Never Seen A President Do This.
  • 6 days An Indian Opinion on What is Going on in China
  • 3 days Forecasts for Natural Gas
  • 4 days Australia sues Neoen for lack of power from its Tesla battery
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Saudi Arabia Continues To Lead The OPEC Cuts

In a sign that Saudi Arabia plans to initially comply with OPEC’s production cuts, state-run Saudi Aramco is discussing with customers the possibility to cut its February crude loadings by between 3 percent and 7 percent, Reuters reported on Thursday, citing four sources in the know.

In OPEC’s deal from November, the cartel’s de facto leader and biggest producer Saudi Arabia pledged to cut 486,000 bpd, lowering production to 10.058 million bpd.

“Aramco is approaching all its customers for possible cuts from February and discussing likely (supply) scenarios,” Reuters quoted one of the sources as saying. The scenarios vary between cuts of 3 percent and 7 percent, the source noted.

Aramco’s cuts in February deliveries would vary among customers and across various Saudi grades.

The state oil company would get nominations for February loadings from its customers and is looking into which grades it could cut from, another source told Reuters.

By early next week, on January 10, Saudi oil buyers will be notified of their allocations for next month.

Earlier this week, media in the Middle East reported that OPEC member Kuwait had cut output by 130,000 bpd to about 2.75 million bpd, while non-OPEC Oman was said to cut 45,000 bpd from 1.01 million bpd.

Kuwait had pledged 131,000 bpd cut in the OPEC deal while Oman has indicated several times that those 45,000 bpd was the amount it intended to cut.

Venezuela has also said that it would start reducing supply by 95,000 bpd beginning January 1st, complying with its commitment to the total cartel cuts.

On Thursday, Iraq announced it had begun reducing production, though no figures were released.

"Iraq reaffirms its commitment to the decision by OPEC, which was adopted at the last meeting in Vienna by putting in place a deliberate plan to reduce output from the country's fields with the beginning of the New Year, and that Iraq is dealing wisely with this issue", Luaibi said in a statement on the oil ministry website, Platts reported. Related: 2017 – A Quiet Year For Oil?

S&P Global Platts estimates Iraq produced at an average of around 4.6 million barrels per day in December, up 50,000 from November.

Given OPEC’s poor track record of sticking to promises, analysts are not very optimistic that all cartel members and all 11 non-OPEC producers that had committed to cuts would fully comply this time either.

Still, some expect compliance will be high, like Goldman Sachs, for example, which sees compliance at 84 percent. Energy Aspects oil analyst Virendra Chauhan told CNBC that he expected compliance at 80 percent and that Russia would stand by its promised cut. Alex Dryden, global market strategist at JP Morgan, also sees compliance at around 80 percent, he has told CNBC.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News