• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 11 hours OPEC will consider all options. What options do they have ?
  • 5 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 8 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 7 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 26 mins Not The Onion: Vivienne Westwood Says Greta Thunberg Should Run the World
  • 5 hours A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 14 hours What to tell my students
  • 19 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 14 hours With Global Warming Greenland is Prime Real Estate
  • 12 hours China Threatens to Withhold Rare Earth Metals
  • 1 day TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 1 day Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents, building nukes * Too late now
  • 1 day Flaring is at Record Highs in Texas
Alt Text

Oil Rises As Market Awaits Saudi Move Counter Glut

Despite another gloomy demand forecast…

Alt Text

Oil Markets Face Nightmare Scenario

Financial markets saw their worst…

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

Oil Edges Higher As OPEC Reaches Consensus On Cut Extension

OPEC members and their partners in the oil production cut agreements from last November and December have reached a consensus to extend the deal until the end of 2017, the oil ministers of Iraq and Algeria said at a joint news conference.

Jabber al-Luaibi and Noureddine Boutarfa said the official announcement of the extension will take place at OPEC’s May 25 meeting at its headquarters in Vienna, with the Algerian minister adding that “Algeria and Iraq maintain a united stand for the next cuts.”

No mention was made about deepening the cut, as some analysts have suggested might be necessary. The initial agreement envisaged OPEC taking off 1.2 million bpd from global supply with Russia and 10 other non-members cutting another 600,000 bpd. Two OPEC members are exempt from the cut—Nigeria and Libya— and a third member, Iran, was allowed to boost output to a specified level.

Earlier this month, the energy ministers of Russia and Saudi Arabia also indicated in no ambiguous terms that they would be on board with the extension.

The announcement will likely boost to oil prices, which yesterday jumped on reports from the American Petroleum Institute and the Energy Information Administration, which both estimated U.S. crude oil inventories to have fallen by more than 5 million barrels in the week to May 5. Related: Is This Country Africa’s Qatar of Natural Gas?

Brent crude jumped back above US$50 on the news and stayed there, buoyed by the ministers’ comments, while WTI, which last Friday slipped below US$45 a barrel, regained some ground, settling yesterday at US$47.91 a barrel.

Both investors and analysts are doubtful about the effects of the deal extension, with some suggesting it would have to be extended beyond the end of 2017 and others arguing that cuts won’t do the trick because it is missing the point: U.S. producers are boosting their drilling efficiency and lowering production costs, which results in sustainable profitability.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • Scott Leach on May 11 2017 said:
    Must be jawbone Thursday!

    More BS from the corrupted evil side of the world!

    The Donald will drill, drill, drill in the USA for sure as long as those lying jawboners are in business.
  • petergrt on May 11 2017 said:
    Does this mean that the Saudis are OK with the Russians taking over at least some of their sales territory, India for example . . . . or is it in line with 'whatever it takes' BS . . . .?

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play