• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days The United States produced more crude oil than any nation, at any time.
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 3 days Bad news for e-cars keeps coming
  • 4 days China deletes leaked stats showing plunging birth rate for 2023
  • 6 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
Georgia Explores Closer Ties with Iran as Western Alliances Fray

Georgia Explores Closer Ties with Iran as Western Alliances Fray

Georgia's Prime Minister Irakli Kobakhidze's…

Canada Labels Iran's IRGC Terrorist Entity After Flight PS752 Tragedy

Canada Labels Iran's IRGC Terrorist Entity After Flight PS752 Tragedy

Canada designated Iran's Islamic Revolutionary…

OPEC Production Cut May Need to Be Extended: Oil Ministers

The oil ministers of Iran and Qatar have suggested that OPEC’s production cut agreement may have to be extended beyond the June deadline, despite an almost 100-percent compliance rate.

The comments come a day after the American Petroleum Institute reported the second-largest crude oil inventory increase in history, at 14.227 million barrels, which added fuel to worries that production cut efforts are not enough to rebalance the market.

Iran’s Oil Minister, Bijan Zanganeh, told Iranian media after a meeting with his Venezuelan counterpart that the option of extending the cut needs further study, but, he said, “in principle” the group must do it. Zanganeh also said that most OPEC producers would be happy with oil at US$60 – a level that has proved difficult to reach.

Qatar’s Oil Minister Mohammed Al Sada, for his part, spoke at a news conference in Doha, saying that the oil market may rebalance in the third quarter, adding that “it’s too early to make a judgment.”

At the same time, however, Qatar’s Finance Minister said that the country is comfortable with the current level of oil prices, with expectations that it will be able to plug its budget hole this year, at oil price levels of US$45, as stipulated in the budget.

Related: Huge Crude Inventory Build Sparks Wave Of Panic Buying

The latest update from OPEC on how the production cut was progressing pegged daily production for January at 32.89 million barrels, versus a target of 32.5 million barrels. This represented a compliance rate of 91 percent and suggested that nearly everyone is on board with the market rebalancing effort.

Iraq is still producing 130,000 bpd more than agreed, but as a whole, the cartel is exceeding expectations of compliance. This, however, seems to be insufficiently lifting benchmark prices. After API’s report yesterday, WTI slipped below US$52 and Brent dropped below US$55.

Both WTI and Brent benchmarks climbed following Wednesday’s EIA inventory report that showed gasoline inventories decreased, contrary to yesterday’s forecasted build by the API.

ADVERTISEMENT

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com: 



Join the discussion | Back to homepage



Leave a comment
  • Kr55 on February 08 2017 said:
    OPEC needs to stick to the plan. I'm sure they know that by flattening the brent contango floating storage would get dumped to land storage. Same thing happened last summer, but before a real string of draws could be put together, they went hog wild and produced like mad, brought the contango back and a new load of floating storage was ready to go again for this years round.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News