• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 7 hours Waste-to-Energy Chugging Along
  • 4 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 4 hours Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 38 mins Venezuela continues to sink in misery
  • 6 hours Let's Just Block the Sun, Shall We?
  • 28 mins What will the future hold for nations dependent on high oil prices.
  • 15 hours Regular Gas dropped to $2.21 per gallon today
  • 13 hours Zohr Giant Gas Field Increases Production Six-Fold
  • 13 hours No, The U.S. Is Not A Net Exporter Of Crude Oil
  • 9 hours UK Power and loss of power stations
  • 23 hours $867 billion farm bill passed
  • 21 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 1 day Air-to-Fuels Energy and Cost Calculation
  • 9 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 14 hours Global Economy-Bad Days Are coming
Alt Text

Asian Oil Futures Point To Higher Crude Prices

Asian Crude and LNG futures…

Alt Text

Canadian Crude Price Spike Won’t Last

The price spike in Canadian…

Alt Text

Oil Prices Crash As OPEC+ Scrambles At 11th Hour

Oil prices headed lower on…

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

Trending Discussions

Oil Leaps Higher As OPEC Pushes For 100% Compliance

All OPEC producers that are part of the supply-cut deal are firmly determined to achieve a higher compliance rate than the 90-plus-percent compliance reported for January, OPEC’s Secretary General Mohammad Barkindo said in a speech in London on Tuesday.

Total OECD commercial oil stocks were already dropping in the last quarter of 2016, and the OPEC/non-OPEC production agreement is expected to further reduce those excessive stocks this year, Barkindo said.

“We will continue to focus on the level of inventory drawdown to bring the level closer to the five-year industry average,” OPEC’s official noted.

In the short term, the OPEC/non-OPEC cooperation is expected to speed up the rebalancing of the oil market, Barkindo said.

The cartel’s chief also drew attention to the fact that the oil price crash has dramatically reduced investments in global oil and gas exploration and production, with spending dropping by 26 percent in 2015 and another 22 percent last year, for a combined drop equal to above US$300 billion. The industry cannot afford to see investment drop for a third consecutive year, Barkindo noted.

Although initial official figures by the International Energy Agency (IEA) and OPEC itself show that the cartel’s early compliance to cuts was very high - more than 90 percent – in January, a lot of analysts and observers are not as optimistic on compliance as we go forward to the spring and summer. Many expect compliance to slip and OPEC members to start producing more, tempted by the current oil prices and expected higher demand with the summer approaching.

Although compliance was 90 percent and higher in January, it was almost solely due to Saudi Arabia and a couple of its closest Gulf Arab allies.

Even with the pledged cuts by OPEC and 11 non-OPEC nations, the initial period of the deal until June may not be enough to draw down the global oversupply. Reports emerged last week that OPEC appears to be prepared to extend the production-cut agreement and also increase the cuts, if inventories fail to drop to a specified level.

By Tsvetana Paraskova 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