• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 2 hours Emissions Need To Be Halved To Avoid 3C Warming
  • 1 min Iran downs US drone. No military response . . Just Destroy their Economy Completely. Can Senator Kerry be tried for aiding enemy ?
  • 1 hour The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 14 mins Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 6 hours Coal Boom in Asia is Real and a Long Trend
  • 1 hour Summit in Pyongyang: China's Xi Says World Hopes North Korea-U.S. Talks Can Succeed
  • 3 hours Pioneer CEO Said U.S. Oil Production would be up to 15 mm bbls/day NOW if we had the pipelines. Permian pipelines STARTING Q3
  • 11 hours Solar Panels at 26 cents per watt
  • 5 hours Huge UK Gas Discovery
  • 17 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 17 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 17 hours US to become net oil exporter in November: EIA
  • 15 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 14 hours US Shale Drilling lacks regulatory body.
Alt Text

Oil Just Had Its Worst Run Since 2008

Oil prices have entered bear…

Alt Text

Expect More Bearish News For Oil

A very bearish inventory report…

Alt Text

Have Canadian Oil Prices Hit The Sweet Spot?

Canadian oil prices have recovered…

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

Trending Discussions

Should OPEC Extend The Production Cut Deal?

Saudi Arabia’s Energy Minister Khalid al-Falih has discussed with his Venezuelan and Kazakhs counterparts the option of extending the crude oil production cut deal beyond the March 31, 2018 deadline, the ministry said yesterday, as quoted by Reuters.

The report comes after last weeks’ media quoted Russia’s Energy Minister, Alexander Novak, as saying the option for another extension was on the table. Novak added, however, that it is too early to talk about anything definitive.

The initial OPEC-non-OPEC agreement pushed Brent prices up to almost US$57 a barrel and WTI to over US$54 a barrel in January this year, but since then, the benchmarks have been sliding down, with a few notable interruptions of the trend thanks to supply disruptions and the May decision to extend the cuts beyond the original deadline of June 30, 2017.

A growing number of analysts, however, are of the opinion that OPEC is digging itself into a deeper hole the more it extends the production cuts. Lower output from the cartel’s members means lower exports and, consequently, lower crude oil revenues. It is also costing them market share to rivals, including partner Russia and the U.S.

This loss will be difficult to recoup, analysts believe, so it might be more sensible for the low-cost producers in the Middle East to quit trying to prop up prices by curbing production. Instead, returning to growing production might do the trick by pressuring prices to a level where U.S. shale producers can’t keep pumping.

It’s questionable whether these OPEC members would be willing to make the U-turn. The latest export and floating storage data suggest the global glut is beginning to ease, albeit slowly. OPEC’s August exports were lower than July’s, even though they remained above the average monthly for 2016. Floating storage, according to Kpler, hit the lowest since 2015 over the 30 days to September 8, marking a 27-percent decline over the period. Even so, prices remain much lower than where OPEC and its partners hoped they would be following the deal.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Brandon on September 11 2017 said:
    Likely. Market balancing does not truly need extension, but Aramco does.

Leave a comment





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