• 4 minutes 5 Tweets That Change The World?
  • 7 minutes Trump Tariffs NOT China's Biggest concern. Chinese Shadow Banking Bigger. What is Shadow Banking You Ask ?
  • 11 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 15 minutes Glory to Hong Kong
  • 7 mins Any difference btw Hunter Biden on BOD of Ukraine Company vs. Qatar bailout of Kushner Real Estate 666 Fifth Ave ?
  • 40 mins The Ultimate Heresy: Technology Can't Fix What's Broken
  • 2 hours Total SA In Expansion: $600 million For India's Adani Gas
  • 46 mins PETROLEUM for humanity 
  • 1 min HK. Out. Now.
  • 22 mins China 2019 - Orwell was 35 years out
  • 3 hours China's Blueprint For Global Power
  • 3 hours Who's Afraid Of Whom? - American Politics I
  • 43 mins Impeachment and Foreign Conflicts in USA Politics
  • 17 mins ISIS Prisoners Escape Syria Camp After Turkish Shelling. Woohoo!
  • 27 mins How The US Quietly Lost The 1st Amendment
  • 2 hours American Politics II - The Political Implosion / America At War With Itself
  • 2 hours The world may be oversupplied with oil now, what happens when this dries up ?
  • 2 hours KURDS LEFT HIGH AND DRY TO DIE?
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