• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 4 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 2 hours Shale profitability
  • 7 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 9 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 6 mins Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 12 mins Europe: The Cracks Are Beginning To Show
  • 14 hours Let's shut down dissent like The Conversation in Australia
  • 17 hours New designs will reduce transport fuels consumption
  • 8 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 14 hours A little something for all you Offshore swabbies
  • 2 hours LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 18 hours Democrats and Gun Views
  • 22 mins US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 5 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

OPEC Deal Closer Than Ever To Meeting Market Rebalancing Goals

OPEC

The OPEC deal is closer than ever to meeting its market rebalancing goals, with OECD inventories now just 74 million barrels above the five-year average recorded in January 2017, according to a report by Reuters.

When the output reduction deal went into effect at the beginning of last year, inventories were 340 million barrels above the benchmark figure, according to Ayed Al Qahtani, who heads OPEC’s research group. The official made the remarks during the ongoing International Petroleum Week proceedings in London.

“This conformity level has been very successful in withdrawing the overhang,” Al Qahtani told the audience.

OPEC members have been reducing output by 1.2 million barrels per day to push prices upwards. Markets have been stubbornly bearish since the September 2014 and January 2016 crashes, but the past year has seen some upward movement in the Brent barrel.

There are also roughly a dozen other non-OPEC nations that have pledged to cut 600,000 additional barrels per day, with Russia making half of these additional reductions. The OPEC and the non-OPEC producers will draft a plan for long-term cooperation this year to institutionalize their current collaboration into a supergroup of oil producers led by Saudi Arabia and Russia, Emirati Energy Minister Suhail Al Mazrouei told The National in an interview published this month.

The producers aim “together with the secretary general [of OPEC, Mohammad Barkindo], to put together a draft agreement for this group [of 24] to stay together for a longer time”, Al Mazrouei said. Putting together a draft charter and discussing it during the year is one of the UAE’s aspirations, said the minister whose country is currently holding OPEC’s presidency.

The idea to follow up on the current OPEC/non-OPEC cooperation came originally from OPEC’s Secretary General Mohammad Barkindo, who said as early as October last year that the partnership could be institutionalized.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Mamdouh G Salameh on February 21 2018 said:
    The re-balancing in the market could have been achieved much earlier if not for the rise in oil production in Libya and Nigeria. The net production cuts by OPEC/non-OPEC producers were in effect just around 1 million barrels a day (mbd) and not 1.8 mbd given the increase in Libya's production by 600,000 barrels a day (b/d) and Nigeria's increase by 200,000 b/d, both of whom were exempt from the production cut agreement.

    Still, OPEC/non-OPEC producers have displayed unprecedented discipline in abiding by the agreement. And now that they are planning to institutionalize their cooperation for long term cooperation, oil prices will be receiving added support in the future.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play