• 1 day U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 1 day Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 2 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 2 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 2 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 2 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 2 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 2 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 2 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 3 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 3 days Venezuelan Output Drops To 28-Year Low In 2017
  • 3 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 3 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 3 days Kinder Morgan Delays Trans Mountain Launch Again
  • 3 days Shell Inks Another Solar Deal
  • 4 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 4 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 4 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 4 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 4 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 4 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 4 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 4 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 4 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 4 days Norway Grants Record 75 New Offshore Exploration Leases
  • 5 days China’s Growing Appetite For Renewables
  • 5 days Chevron To Resume Drilling In Kurdistan
  • 5 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 5 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 5 days Nigeria Among Worst Performers In Electricity Supply
  • 5 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 5 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 6 days Saudis To Award Nuclear Power Contracts In December
  • 6 days Shell Approves Its First North Sea Oil Project In Six Years
  • 6 days China Unlikely To Maintain Record Oil Product Exports
  • 6 days Australia Solar Power Additions Hit Record In 2017
  • 6 days Morocco Prepares $4.6B Gas Project Tender
  • 6 days Iranian Oil Tanker Sinks After Second Explosion
  • 8 days Russia To Discuss Possible Exit From OPEC Deal
  • 8 days Iranian Oil Tanker Drifts Into Japanese Waters As Fires Rage On
Alt Text

The World’s Most Expensive Oil

There are hundreds of oil…

Alt Text

Can The Oil Price Rally Continue?

Oil markets took a breather…

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

No OPEC Cut Needed, Says Saudi Oil Minister

Offshore rig

OPEC does not actually need to cut production to rebalance the markets, according to Saudi Oil Minister Khalid al-Falih. In a surprising U-turn, after two months of negotiations aiming to convince all OPEC members that a cut is vital, the group’s largest producer now believes the market can rebalance itself without intervention.

However, Al-Falih allowed that the “OPEC intervention aims to expedite this balance and the market recovery at a faster pace.”

He further suggested that a freeze at current production levels—rather than a cut—could also take care of the glut problem.

This is not Algeria’s narrative, nor is it Venezuela’s, or many other OPEC members. According to information reported by Iran’s Shana agency, Algeria is calling for a cut of 1.1 million barrels, which is at the upper end of the range that had originally been discussed by OPEC members, but shy of the 4-4.5% proposed last week. Shana quoted Algeria’s Energy Minister Noureddine Boutarfa after he met with Iran’s Bijan Zanganeh.

An earlier report quoted sources from the organization as saying the cut that was being discussed was in the range of 4-4.5 percent of OPEC’s total production for October, which is more than the 1.1-million-bpd cut suggested by Algeria, using secondary sources. Related: The Three Faces Of Climate Change

Judging by Al-Falih’s latest remarks, it looks like Saudi Arabia may not be on board with either suggestion.

The minister, who spoke to media yesterday at the HQ of Aramco, also said the country was upbeat about crude oil demand next year, and in particular, demand for Saudi oil. Still, when asked if Saudi Arabia was planning to keep its output at current high levels (10.6 million bpd in November), Al-Falih declined to give a straight answer, saying only that demand for Saudi crude was “healthy”.

Further reinforcing the notion that Saudi Arabia is no longer a devout proponent of the cut, Al-Falih, just last week, bowed out of a meeting with non-OPEC producers, including heavyweight Russia, which was supposed to take place on Monday, just two days before the OPEC meeting in Vienna, saying there was no internal OPEC agreement on policy. The meeting was subsequently canceled, and all eyes will be on the November 30 OPEC meeting in Vienna.

By Irina Slav for Oilprice.com




Back to homepage


Leave a comment
  • Jack Ma on November 28 2016 said:
    The Narrative is really that of the USA, the Globalists, and of course big oil that lives by the Rockefeller strategy to bankrupt the competition on low prices dropped by fake paper oil supply reported by the EIA and then to later jack up the prices after the competition is gone. Think modern day Wally-Marty...


    Since XOM is the defacto owner of all Saudi oil and the Royal Family puppets, it is really just that SA just does what it is told by its Western Master - INCLUDING speech.


    Oil needs to stay low until many more of the BRICS are bankrupt and at the mercy of the IMF as eternal debt salves. Once the assets are belonging to the elites and they are on the receiving side of the revenue streams, oil will rise.


    It's not yet time for oil to rise.


    GS is doing another head fake on the world as they are the biggest front runner of oil short bets in the world.

    IMHO

Leave a comment




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