• 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 ?
  • 1 hour Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 3 hours Climate change & Wildfires: More Wildfires To The Western U.S., Will Affect Tens Of Millions Of People
  • 22 mins Wonders of Shale - Gas, bringing investments and jobs to the US
  • 22 mins Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 7 hours Hard To Believe: UAE Will Work To Defuse Middle East Tension
  • 1 hour The Plastics Problem
  • 3 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"
  • 5 hours Cherry Picking Climate Data
  • 8 hours Oil Demand Needs to Halve: Equinor
  • 8 hours Green vs. Coal: Bavaria Seeks Fast-Track German Coal Exit in Snub to Merkel Plan
  • 15 hours Solar Panels at 26 cents per watt
  • 14 hours Huge UK Gas Discovery
  • 2 hours Coal Boom in Asia is Real and a Long Trend
  • 57 mins Is $60/Bbl WTI still considered a break even for Shale Oil
The 100-Year Old Wildcatter Poised For A Breakout

The 100-Year Old Wildcatter Poised For A Breakout

Noble Energy is an industry…

Can Artificial Intelligence Save The Nuclear Industry?

Can Artificial Intelligence Save The Nuclear Industry?

Nuclear plant decommissioning is a…

OPEC: Deeper Cuts Are Not Out Of The Question

OPEC

OPEC and its partners might consider deepening the crude oil production cuts they agreed to extend to the end of March 2018, Saudi Energy Minister Khalid al-Falih told Russia’s TASS news agency in an interview. However, Al-Falih added that it is too early to discuss deeper cuts now as the current rate of cuts is working and the effects will become apparent by the end of next month.

“Nothing is off the table but today nothing is on the table either. We made a deal,” the minister said, adding that if all participants in the deal stick to their quota and the world economy continues to improve, the oil market will return to balance soon. He noted that compliance in April had exceeded 100% and said he hoped the figures for May were even better.

Shipping data tracked by Reuters revealed that in May OPEC shipped 24.3 million bpd around the world, down by half a million bpd from April and considerably lower than the five month average to May, which stood at 25.1 million bpd.

Still, prices are slipping down as traders remain skeptical of OPEC’s and its partners’ ability to restore balance in demand and supply while U.S. producers continue to ramp up production. In fact, Brent crude, the international benchmark, slid below US$50 a barrel today in Asian trade, indicating that no amount of assurances from OPEC or Russia could push prices up unless they are supported by hard evidence.

Meanwhile, U.S. crude oil production has gained 10 percent over the last year, to 9.34 million barrels and the number of drilling rigs has been rising for the last 20 weeks – a record streak of additions. At the end of last week, there were 733 active rigs in the U.S. oil patch, the highest number since April 2015.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Josh Gregner on June 05 2017 said:
    If oil only keeps(! - not even increases) its price based on continuous and accelerating(?) production cuts, the much anticipated oil demand surge seems to not be happening, does it?

    And if Chinese Tea Pots are only buying at USD 28 per barrel (with no shortage of sellers), one really has to ask what the price for WTI and Brent actually means...

Leave a comment

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