• 3 hours Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 5 hours Venezuelan Output Drops To 28-Year Low In 2017
  • 7 hours OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 10 hours Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 11 hours Kinder Morgan Delays Trans Mountain Launch Again
  • 12 hours Shell Inks Another Solar Deal
  • 1 day API Reports Seventh Large Crude Draw In Seven Weeks
  • 1 day Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 1 day EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 1 day IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 1 day Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 1 day Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 1 day Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 1 day Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 2 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 2 days Norway Grants Record 75 New Offshore Exploration Leases
  • 2 days China’s Growing Appetite For Renewables
  • 2 days Chevron To Resume Drilling In Kurdistan
  • 2 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 2 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 2 days Nigeria Among Worst Performers In Electricity Supply
  • 3 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 3 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 3 days Saudis To Award Nuclear Power Contracts In December
  • 3 days Shell Approves Its First North Sea Oil Project In Six Years
  • 3 days China Unlikely To Maintain Record Oil Product Exports
  • 3 days Australia Solar Power Additions Hit Record In 2017
  • 3 days Morocco Prepares $4.6B Gas Project Tender
  • 4 days Iranian Oil Tanker Sinks After Second Explosion
  • 6 days Russia To Discuss Possible Exit From OPEC Deal
  • 6 days Iranian Oil Tanker Drifts Into Japanese Waters As Fires Rage On
  • 6 days Kenya Cuts Share Of Oil Revenues To Local Communities
  • 6 days IEA: $65-70 Oil Could Cause Surge In U.S. Shale Production
  • 6 days Russia’s Lukoil May Sell 20% In Oil Trader Litasco
  • 6 days Falling Chinese Oil Imports Weigh On Prices
  • 6 days Shell Considers Buying Dutch Green Energy Supplier
  • 7 days Wind And Solar Prices Continue To Fall
  • 7 days Residents Flee After Nigeria Gas Company Pipeline Explodes
  • 7 days Venezuela To Pre-Mine Petro For Release In 6-Weeks
  • 7 days Trump Says U.S. “Could Conceivably” Rejoin Paris Climate Accord
Alt Text

Crypto-Miners Buy Russian Power Stations

Investors just scooped up two…

Alt Text

Can Oil Break The $70 Threshold?

Oil markets appear reluctant to…

Alt Text

Two Changing Trends In Oil Shipping

Both U.S. and Asian markets…

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

UAE Oil Minister: OPEC Deal Could Extend Beyond 2018

OPEC logo

The OPEC/Russia deal for crude oil production cuts could extend beyond 2018, the United Arab Emirates’ energy minister, Suhail al-Mazrouei has suggested. Speaking to CNBC, Al-Mazrouei said "I am expecting that this group of countries that stood and have become responsible for helping the market to correct, (that) there is a very good chance that they could stick together and put a shape around that alliance."

His statement comes amid a variety of scenarios on how the deal might come to an end, featuring civil unrest in Venezuela and Iran that may lead to supply disruptions; Russia pulling out of the pact in June; OPEC members and other parties to the deal starting—or continuing—to cheat; and oil prices rising too high.

For now, it looks like the last scenario is most likely: there is already talk that OPEC would act if Brent tops US$70 a barrel, as this would spur faster oil production growth in OPEC’s number-one foe, U.S. shale. The talk comes amid EIA forecasts that U.S. total crude oil production could hit 11 million barrels daily by late 2019.

The scenario where Russia pulls out unilaterally is also likely: its oil majors have been complaining about the deal and how it is creating stumbling blocks on the road towards the industry’s expansion plans. With the influence that Rosneft’s CEO Igor Sechin can wield among local politicians, and the fact that President Putin seems reluctant to rein him in, there is a chance that the Kremlin could yield to the industry’s insistence to stop curbing production.

Al-Mazrouei’s comment could be a hint as to the exit strategy that OPEC may decide to pursue to avoid too big a slump in oil prices when it announces the end of the deal: other OPEC officials have already remarked that the exit would be gradual. Common sense suggests that the more gradual it is, the better for prices, so hints in the direction of another extension would certainly help buoy benchmark prices.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Mamdouh G Salameh on January 11 2018 said:
    The OPEC/non-OPEC production agreement has so far achieved three major objectives. The first is the continued rise in oil prices since early December 2017. The second is the almost re-balancing of the global oil market. And the third is that it gave a new lease of life to OPEC.

    As a result of the above, the only valid scenario, in my opinion, for the OPEC/non-OPEC production agreement is to be kept beyond 2018 with the proviso that it will act as a barometer to reflect changes in oil prices and global demand for oil and preempt the return any of glut in the market. If members of OPEC and Russia feel by the end of 2018 that the oil prices are holding steady beyond $70/barrel and the oil market has become well balanced, then they could agree to reduce the cuts a little to reflect these facts.

    The historically important Moscow-Riyadh cooperation is vital for the oil prices and the stability of the global oil market. They can act as a counterbalance to the US shale oil production or any attempts by the US Energy Information Administration (EIA) and the International Energy Agency (IEA) to manipulate the oil prices.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




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