• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 6 mins Rioting and Protesting
  • 2 hours Would bashing China solve all the problems of the United States
  • 53 mins WHY was George Floyd Murdered and Why Publicly
  • 3 hours Thugs in Trumpistan
  • 4 hours Model 3 cheaper to buy than BMW 3 series.
  • 10 hours Iran's first oil tanker has arrived near Venezuela
  • 5 hours Pompeo's Hong Kong
  • 3 hours So the President is on that Hydroxy
  • 1 hour Build Back Better is the Latest Globalist Plot
  • 14 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 2 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 6 hours Obamagate Is Not a Conspiracy Theory
  • 8 hours Michael Moore's Controversial "Planet of the Humans" Movie
The Oil Rally Is Running On Fumes

The Oil Rally Is Running On Fumes

Oil prices rallied on Monday…

Oil Prices Stabilize On Rumors Of An OPEC+ Extension

Oil Prices Stabilize On Rumors Of An OPEC+ Extension

Oil prices stabilized on Thursday…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

OPEC Meets Next Week To ‘Fix’ Compliance Problem

Kuwait’s Oil Minister Essam al-Marzouq has delivered an anticlimactic statement regarding the upcoming OPEC ministerial meeting in St. Petersburg: the ministers will discuss compliance levels with the November oil output cut deal.

The meeting, to involve the relevant ministers from all OPEC members and non-OPEC producers that signed up for the production cut last year, fueled expectations that the cartel and its partners in the deal may consider deeper cuts, seeing as the current level of output reduction has not been particularly effective in supporting international oil prices in any consistent way.

However, Al-Marzouq told Kuwait’s news agency KUNA that the ministers will meet on Saturday to review the latest monthly report compiled by the technical committee set up to track compliance among OPEC members and their partners. Also, he said, the committee will discuss on Sunday and Monday an OPEC report concerning the global oil markets in June.

Perhaps the only suggestion that the meeting might discuss a change in strategy was that, as KUNA quoted the minister as saying, the ministers will look into “more relevant suggestions by member states.”

OPEC, excluding Libya and Nigeria, agreed with Russia and 11 other oil producers to cut their combined oil output by a daily 1.8 million barrels in a bid to stabilize prices, pressured by a previous OPEC strategy of pumping at maximum to arrest the increase in U.S. shale oil output.

This cut, however, failed to achieve much, pushing prices up to about US$55 for Brent for a short while. Compliance has been a concern given OPEC’s history of failing to stick to such deals, although the first three months after the deal was inked saw pretty strict quota adherence from most participants in the cartel.

The participants in the deal agreed to extend the cuts until March 2018 three months ago but this, too, failed to do much to lift prices, which is why some analysts called on OPEC and Russia to cut deeper. Ecuador, meanwhile, earlier this week announced it will stop cutting its oil output, setting what could be a dangerous precedent for OPEC, as many of its members are having a hard time sticking to their reduced quotas even at non-full compliance rates.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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