• 4 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 9 minutes Could Venezuela become a net oil importer?
  • 15 minutes Oil prices going Up? NO!
  • 22 mins The Tony Seba report
  • 2 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 11 mins Harley-Davidson "Made in EU"
  • 43 mins Could Venezuela become a net oil importer?
  • 2 hours Erdogan After Erdogan: New Presidential Mandate After Yesterday's Elections
  • 6 hours LNG Shortage on the Way
  • 2 hours The U.S. Will Soon Give North Korea a Timeline of 'Specific Asks
  • 12 hours Kenya Eyes 200+ Oil Wells
  • 11 hours Are Electric Vehicles Really Better For The Environment?
  • 4 hours Sell out now or hold on?
  • 21 hours Saudi Arabia turns to solar
  • 16 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 1 day Oil prices going Up? NO!
  • 3 hours No LNG Pipelines? Let the Trucks Roll In
  • 43 mins China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 12 hours OPEC soap opera daily update
Global Energy Consumption Soars To New Heights

Global Energy Consumption Soars To New Heights

The new BP Statistical Review…

OPEC Edges Closer To Production Agreement

OPEC Edges Closer To Production Agreement

A successful OPEC agreement in…

OPEC And NOPEC To Meet At Vienna Summit To Discuss Cut Extensions

OPEC

The members and non-members of OPEC that participated in the global agreement to reduce oil production in November will be meeting on May 25th – the day of the bloc’s planned summit in Vienna, sources in-the-know told Reuters.

All but two members of OPEC – Nigeria and Libya – participated in the output reduction, with Saudi Arabia taking the largest hit to its production. Eleven NOPEC nations, including Russia, agreed to cut 600,000 additional barrels daily, which hoped to take out of production a total of 1.8 million barrels per day for the first six months of 2017.

Now, the same countries are determining whether they should extend the provisions in the second half of 2017, but the fact that both OPEC and NOPEC are meeting on the same day suggests things may more quickly this time around.

"It all depends on Russia's position," an OPEC delegate told Reuters on Wednesday.

Moscow has not officially stated its support of a potential extension, though Oil Minister Alexander Novak said he had begun consulting Russian oil companies regarding the initiative.

Many OPEC member countries have expressed support at extending the cuts, which will expire in June. Kuwait, Iraq, Algeria and Angola have all stated that prolonging the production cuts is necessary to rebalance the markets. While global inventories have declined, according to the KLR Group, total inventory is still about 350 million barrels above the 2010-2014 average.

Related: Iran Ready To Join OPEC’s Production Cut Extension

Saudi Arabia, the de facto leader of OPEC, is highly dependent on state-run oil giant Saudi Aramco for revenue, and 2.5 years of lower oil prices have created significant government budget deficits. Putting forth an Aramco IPO is seen as a way for the nation to raise revenue, replenishing cash reserves that were decimated during the downturn.

Russia has also seen deficits due to the bearish markets, suggesting the political and financial motivations for OPEC and its main rival are aligned as the parties get into further negotiations in Austria next month.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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