• 4 hours French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 6 hours Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 8 hours Oil Production Cuts Taking A Toll On Russia’s Economy
  • 10 hours Aramco In Talks With Chinese Petrochemical Producers
  • 11 hours Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 12 hours Maduro Names Chavez’ Cousin As Citgo Boss
  • 19 hours Bidding Action Heats Up In UK’s Continental Shelf
  • 24 hours Keystone Pipeline Restart Still Unknown
  • 1 day UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 1 day Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 1 day Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 1 day German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 1 day Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 2 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 2 days Oil Prices Rise After API Reports Major Crude Draw
  • 2 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 2 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 2 days Statoil Looks To Lighter Oil To Boost Profitability
  • 2 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 2 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 2 days Whitefish Energy Suspends Work In Puerto Rico
  • 2 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 3 days Thanksgiving Gas Prices At 3-Year High
  • 3 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 3 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 3 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 3 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 4 days ConocoPhillips Sets Price Ceiling For New Projects
  • 6 days Shell Oil Trading Head Steps Down After 29 Years
  • 6 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 6 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 6 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 6 days Venezuela Officially In Default
  • 6 days Iran Prepares To Export LNG To Boost Trade Relations
  • 7 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 7 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 7 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 7 days Rosneft Announces Completion Of World’s Longest Well
  • 7 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
Alt Text

Short Bets On Oil Spike Ahead Of OPEC Meeting

Short positions in Brent futures…

Alt Text

Has The Big Oil Fire Sale Started?

The world’s largest sovereign wealth…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Oil Holds Steady As OPEC Meets To Talk Slipping Compliance

oil rig

Oil prices were steady early on Monday morning, searching for a catalyst for direction while OPEC is holding a meeting of its Joint OPEC-Non-OPEC Technical Committee (JTC), which monitors the cartel and friends’ compliance with the output cuts.

At 9:15am EST, WTI was at US$48.42 and Brent was at US$52.47.

Two weeks ago, OPEC held a meeting with some of the producers and cited its members Iraq and the UAE, as well as non-OPEC signatories to the deal Kazakhstan and Malaysia, as laggards in compliance.

The market is now awaiting any news, hints, or comments that are expected to follow today’s meeting in Vienna to discuss compliance and the results of the extraordinary meeting in Abu Dhabi two weeks ago.

In its latest Monthly Oil Market Report, OPEC said that its production increased in July, by 172,600 bpd compared to June, to reach 32.869 million barrels. Libya, Nigeria, and Saudi Arabia were the main drivers behind the OPEC production increase.

While Libya and Nigeria are exempt from the deal, the other OPEC members are not doing “whatever it takes” to clear the glut.

The latest monthly oil market report by the IEA showed that OPEC compliance slipped to 75 percent in July, from 77 percent in June. Compliance within the non-OPEC group of producers party to the cuts was 67 percent. Combined, the 22 producers that have pledged to cut production are overproducing a total of 470,000 bpd, according to the IEA. Related: Forget Oil Prices, Oil Majors Are A Buy

Saudi Arabia’s Oil Minister Khalid al-Falih hinted (again) earlier this month that deeper cuts are not entirely off the table, but the market and analysts do not expect the cartel to be willing to cut more and lose more market share and oil revenues at these oil prices.

Inventory draws in the U.S. have been sustained for a few weeks now, but oil prices have been depressed by the continuously rising U.S. output. The market would be expecting to see if the large inventory draws continue in the coming weeks, and if the draws were mostly the result of the driving season in the U.S.

According to Giovanni Staunovo, a commodities analyst at UBS Wealth Management, as quoted by MarketWatch: “There is the risk that inventories start to increase again” if the draws were only due to seasonal factors.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




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