• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes The Inconvenient Truth Of Electric Cars
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 mins Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 5 hours Climate change & Wildfires: More Wildfires To The Western U.S., Will Affect Tens Of Millions Of People
  • 2 hours Wonders of Shale - Gas, bringing investments and jobs to the US
  • 45 mins Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 9 hours Hard To Believe: UAE Will Work To Defuse Middle East Tension
  • 3 hours The Plastics Problem
  • 44 mins The Strait of Hormuz is the world’s most important oil transit chokepoint
  • 5 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 7 hours Cherry Picking Climate Data
  • 10 hours Oil Demand Needs to Halve: Equinor
  • 10 hours Green vs. Coal: Bavaria Seeks Fast-Track German Coal Exit in Snub to Merkel Plan
  • 3 hours Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 mins Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
Alt Text

Expect More Bearish News For Oil

A very bearish inventory report…

Alt Text

Oil Holds Steady Amid Small Rig Count Decline

Oil prices held steady on…

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 Slides As Russia Speaks Out Against Deeper Output Cuts

Russia will oppose any attempts to deepen the oil production cuts currently in effect in OPEC and 11 other oil producers, according to four government officials who spoke to Bloomberg. One of the sources said that deepening the cuts would be unwise, giving the impression that OPEC and its partners in the deal are uncertain about its effectiveness in reducing global supplies.

In other words, a deeper cut might pressure prices further instead of supporting them.

Another of the sources, which spoke on condition of anonymity, said that Russia is also against any further extension of the deal because such an extension will only make oil markets more volatile after it expires, when everyone returns to their normal output rates.

Russia agreed to shave off 300,000 bpd from its record-high output of 11.2 million barrels, which it reached in October 2016—the month that OPEC and its partners in the deal took as basis for the cuts. The partners are meeting later this month in St. Petersburg to discuss how the agreement is going and how global supplies are being affected by the cut.

Oil prices recently experienced a rebound from multi-month lows caused by doubts about how much the OPEC cuts are doing for global oil supply in the face of rising U.S. shale output and inventories, but the latest from the Energy Information Administration sparked some hope that the situation is no longer so bad: production and new drilling fell slightly. Related: Total OPEC Crude Oil Exports Drop In June

But benchmarks began another slide on Wednesday (WTI -3.31%; Brent -2.74% at 9:25am CST), and have been below US$50 a barrel for a couple of weeks now—far from the US$60 OPEC was aiming for with the initial deal and the extension. Deeper cuts could help prices, but the question remains: how many of the parties to the deal could afford deeper production cuts?

Meanwhile, Libya’s oil output has reached the highest in four years – at over 1 million bpd production is complicating OPEC’s efforts to push prices higher.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • Naomi on July 12 2017 said:
    Russians are tired of eating buckwheat, potatoes, and borscht. Putin has a revolution underway.

Leave a comment




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