• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 3 hours WTI @ 67.50, charts show $62.50 next
  • 1 hour Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 2 hours Mike Shellman's musings on "Cartoon of the Week"
  • 7 hours Venezuela set to raise gasoline prices to international levels.
  • 12 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 1 hour Batteries Could Be a Small Dotcom-Style Bubble
  • 7 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 14 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 19 mins Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 13 hours Corporations Are Buying More Renewables Than Ever
  • 2 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 18 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 3 hours France Will Close All Coal Fired Power Stations By 2021
Alt Text

Turkey Turmoil Drags Oil Down

While Turkey might not be…

Alt Text

Oil Prices Jump As Saudis Cap Oil Supply

Oil prices rose on Tuesday…

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

Saudi Oil Minister Hints At Post OPEC Deal Strategy

Al-Falih

OPEC and Russia-led non-OPEC oil producers left any ‘exit strategy’ talk out of their agreement to extend the production cut pact through the end of 2018 last week, and now Saudi Arabia’s Energy Minister Khalid al-Falih fed the market some hints about what OPEC would do after the cuts.

Unless sudden oil market developments occur, OPEC is expected to continue sticking to the production cuts until the end of next year, and “we will not alter our course in the second half of the year,” al-Falih said at a news conference in Riyadh on Monday.

“However, we think that the outlook for when we will hit the balanced market will be clearer in June, and we will start thinking of what do we do in 2019,” the most powerful oil minister at OPEC said, as carried by Reuters.

“The intent is not overnight to open the taps and flood the market,” Bloomberg quoted al-Falih as noting.

But should sudden disruptions in supply occur, OPEC is ready to bring back more supply to the market because it has enough spare capacity, the Saudi minister said.

“We have close to 2 million barrels [bpd] of spare capacity so our ability to bring back production in case of need for global supply security goes beyond the amount of cuts we have made,” al-Falih said. Related: The Man Behind The Oil Price Rally

But the market right now is looking at the growing supply coming from producers outside the OPEC and allies’ deal, most notably U.S. shale.

After OPEC rolled over the cuts through the end of next year, Ed Morse, global head of commodities research at Citigroup, told Bloomberg that “This OPEC is in a defensive mode, and it’s gonna lose in the long run because the world has changed relatively dramatically since those other OPECs of other points in time.”

The higher the price of oil goes, the more oil will be coming to the market, Morse told Bloomberg, noting that even the cost of producing deepwater resources and Canada’s oil sands are now “well below the fiscal breakevens of these OPEC countries.”

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