• 4 minutes Why Trump will win the wall fight
  • 8 minutes Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 8 mins is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 28 mins Solar and Wind Will Not "Save" the Climate
  • 1 hour Some Good News on Climate Change Maybe
  • 50 mins Ayn Rand Was Right
  • 15 hours students walk out of school in protest of climate change
  • 7 hours Expected Breakdown: Israel-Central Europe Summit Canceled After Polish Pullout
  • 3 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day L.A. Mayor Ditches Gas Plant Plans
  • 1 day *Happy Dance* ... U.S. Shale Oil Slowdown
  • 6 hours IT IS FINISHED. OPEC Victorious
  • 1 day And for the final post in this series of 3: we’ll have a look at the Decline Rates in the Permian
  • 8 hours Amazon’s Exit Could Scare Off Tech Companies From New York
Alt Text

Brent Crude Hits 2019 High At $65

Brent Crude hit $65 a…

Alt Text

Flurry Of Bullish News Boosts Oil Prices

Oil prices reached 2019 highs…

Alt Text

Why WTI Is A Global Oil Market Benchmark

As U.S. crude oil production…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

Expect An Extension Of The OPEC Deal

The oil market is moving in the right direction towards rebalancing, but all options, including extending the cuts beyond March 2018, are left open, the joint OPEC/non-OPEC committee set up to monitor compliance with the cuts and the state of the oil market said on Thursday.

The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC)—which has been holding meetings in Vienna this week to discuss slipping conformity with the pledges—pointed to a better-than-expected global oil demand growth for this year, and expectations for further growth next year as one of the reasons for optimism. In addition, the OPEC/non-OPEC panel pointed to oil commercial stocks declining in July—and along with it the latest five-year average—compared to the start of this year. The narrowing contango has also contributed to a drop in floating storage since June, the committee noted.  

OPEC’s de facto leader Saudi Arabia and the leader of the non-OPEC producers, Russia, have discussed extending the cuts by three months into June 2018, and such a move would likely be on the agenda of the November 30 OPEC summit, S&P Global Platts reported today, citing sources.

According to energy and commodities analysts, a three-month extension would be a logical step to take in the autumn when the oil market sentiment would likely sour again. An extension to June 2018 would also prevent a “severe uptick” in surplus after March next year, as Michael Cohen, head of energy commodities analysis for Barclays, told Platts.

According to Joe McMonigle, senior energy policy analyst at Hedgeye Potomac Research, an extension at the November meeting would be the minimum action OPEC would take.

“The market will be looking for stronger action, like deeper cuts,” McMonigle noted. Related: Nigeria’s Oil Industry Overhaul

Immediately after OPEC announced at the end of May the extension of the cuts into March 2018, oil prices plunged, because the market was expecting a more drastic action, like deeper cuts, that would prove that OPEC really was willing to do “whatever it takes” to bring the market back to balance.

The joint panel also said today that it planned to invite Libya and Nigeria to attend the next meetings of the committees, in a sign that rising output from those two exempt producers is now a concern for OPEC. The next JMMC Meeting will be held in Vienna on September 22, 2017.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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