• 8 minutes U.S. Shale Oil Debt: Deep the Denial
  • 13 minutes WTI @ $75.75, headed for $64 - 67
  • 16 minutes Trump vs. MbS
  • 8 hours Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 16 hours Nuclear Pact/Cold War: Moscow Wants U.S. To Explain Planned Exit From Arms Treaty
  • 8 mins Despite pressure about Khashoggi's Murder: Saudi Arabia Reassures On Oil Supply, Says Will Meet Demand
  • 4 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 16 hours Why I Think Natural Gas is the Logical Future of Energy
  • 15 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 9 hours Get on Those Bicycles to Save the World
  • 12 hours Iraq war and Possible Lies
  • 1 day Satellite Moons to Replace Streetlamps?!
  • 1 day Can “Renewables” Dent the World’s need for Electricity?
  • 10 hours EU to Splash Billions on Battery Factories
  • 23 hours Long-Awaited Slowdown in China Exports Still Isn’t Happening
  • 1 day Can the World Survive without Saudi Oil?
Alt Text

Can We Expect A Rebound Rally Next Week?

Despite recovering somewhat on Friday,…

Alt Text

Oil Experts Divided As Iran Sanctions Loom

The world’s top oil trading…

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

Trending Discussions

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:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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