• 3 minutes China's aggression is changing the nature of sovereignty.
  • 8 minutes Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 11 minutes Europe gas market -how it started how its going
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours Russia, Ukraine and "2022: The Year Ahead"
  • 3 days Why is oil priced and traded in U.S. dollars?
  • 3 days Ukrainian Maidan after 8 years
  • 3 days Russia oil production live month after month starting from November 2021 - official stats from Rosstat agency
3 Key Trends Driving Natural Gas In 2022

3 Key Trends Driving Natural Gas In 2022

2021 will go into the…

Energy Storage Could Emerge As The Hottest Market Of 2022

Energy Storage Could Emerge As The Hottest Market Of 2022

Energy storage is quickly emerging…

Asia Is Winning The War For EV Batteries

Asia Is Winning The War For EV Batteries

As the global market for…

Editorial Dept

Editorial Dept

More Info

Premium Content

Where Does Oil Go After The Largest Production Cut In History?

Right now, it is understandably difficult for anything to interrupt the coronavirus news cycle, even in the focused world of energy and commodities. This week, however, one thing managed to do that. On Thursday, there was a virtual meeting of what has become known as the OPEC+ group, and the meeting and its results were big news.

OPEC+ is the group of oil-producing countries that includes OPEC and a few select, non-OPEC oil-producing countries, most notably Russia. They first came together in 2016 to cut crude output in an attempt to stabilize prices and have adjusted the level and distribution of those cuts several times since. As you can see from the chart, oil prices climbed significantly for two years following the agreement but fell dramatically at the end of 2018 before collapsing completely this year.

Part of this year’s dramatic collapse was due to the output restriction agreement falling apart at the start of last month, resulting in the biggest one-day decline in oil’s history. So, when OPEC+ announced on Thursday that they had agreed to cuts of 10 million barrels per day, it was big news.

The problem, though, is that WTI futures did this on the announcement…


There are two obvious questions. Why did oil futures drop so much on the announcement of the biggest output cuts ever, and what does it mean for prices going forward?

The first is the easier question to answer.

What we saw yesterday was a giant,…





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