• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days They pay YOU to TAKE Natural Gas
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 2 days What fool thought this was a good idea...
  • 10 mins A question...
  • 5 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 11 days The United States produced more crude oil than any nation, at any time.
Under-hedged U.S. Shale Patch Exposed To Falling Oil Prices

Under-hedged U.S. Shale Patch Exposed To Falling Oil Prices

Commodity analysts at Standard Chartered…

Memorial Day Travel Expected to Near Record High

Memorial Day Travel Expected to Near Record High

Around 43.8 million Americans are…

Biden To Hike Tariffs on Chinese EVs and Clean Energy Tech

Biden To Hike Tariffs on Chinese EVs and Clean Energy Tech

The Biden Administration is preparing…

Editorial Dept

Editorial Dept

More Info

Premium Content

The OPEC Deal Is Under Threat

OPEC

As Phase 3 of COVID rages globally, the UAE, Kuwait, and Iraq are uncertain about extending OPEC oil production cuts into 2021, which means that come November, the OPEC deal could come into question despite the clear demand lag amid a pandemic that shows no sign of letting up. This throws a wrench into efforts to rebalance the market, and even though Saudi Arabia, and even at-times-hesitant Russia, appear ready to continue 7.76 million bpd of cuts into the New Year, Iraq has always been an outlier, and now even UAE and Kuwait are having second thoughts thanks to debilitating budget deficits. 

In April, the UAE was pumping 3.9 million bpd. Now it’s pumping less than 2.6 million bpd. Kuwait is producing just under 2.3 billion bpd, down from around 3.1 million bpd prior to the OPEC cuts. Iraq definitely can’t handle the cuts, and is counting on a pass entirely for 2021. Yet on Friday, Iraq threw official support behind any OPEC+ unanimous decision on the production cuts.

By November, a time of massive uncertainty over U.S. presidential elections and the economic scourge of a resurgent pandemic, OPEC may add to oil’s woes. 

As it stands, OPEC+ is hoping to “relax” production cuts to 5.8 million bpd in January, but the Saudis and Russians have also made it clear that they will consider demand implications before making that decision. And for now, with the ‘third wave’ of COVID ravishing the U.S. and Europe, and more lockdowns imminent (particularly in Germany…





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