• 4 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 7 minutes Middle East on brink: Oil tankers attacked off Oman
  • 11 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 14 minutes The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 13 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 4 hours The Plastics Problem
  • 8 hours Coal Boom in Asia is Real and a Long Trend
  • 1 min US Shale Drilling lacks regulatory body.
  • 2 hours Solar Panels at 26 cents per watt
  • 15 hours Hydrogen FTW... Some Day
  • 18 hours GM Considering Electric Hummer
  • 14 hours As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 5 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
  • 1 day Forbes: Giant Floating Solar Farms Could Extract CO2 From Seawater, Producing Methanol Fuel.
  • 1 day China's President Xi To Visit North Korea This Week
  • 5 hours Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 1 day Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .

Breaking News:

Oil Stabilizes On Small Crude Draw

The Top 50 Oil & Gas Companies Of 2019

The Top 50 Oil & Gas Companies Of 2019

The playing field for global…

Oil Markets Shrug Off Gulf Of Oman Tanker Attacks

Oil Markets Shrug Off Gulf Of Oman Tanker Attacks

Tensions in the Middle East…

OPEC Production Cut Settled, But Russian Cooperation Remains Uncertain

OPEC

The oil markets exhaled early on Thursday morning as two OPEC sources announced that the oil cartel had tentatively agreed to a production cut of non-specific volumes.

The announcement as to exactly how much OPEC is agreeing to cut and which of its members will be tasked with doing so will come later, according to the sources, as they are waiting on Russia, without which the cuts could be toothless.

Russia’s energy minister, Alexander Novak, was in Vienna earlier, and now must touch base with President Vladimir Putin before committing to anything. Novak is expected back in Vienna, answer in hand, on Friday.

Two of OPEC’s members, Libya and Nigeria, have asked to be exempt from the cuts like they were for the last round of cuts, although OPEC delegates yesterday were trying to persuade both countries to cooperate this time around. Iran, under the weight of US sanctions against it, has refused to curb production, saying that as long as it remains under sanctions it will not restrict output.

While the exact figures that the cartel and OPEC, and the rest of the non-OPEC allies will cut has not yet been announced, news that they have agreed to cut at all should lift prices that sunk earlier in the day.

At 9:04am EST, the WTI benchmark had slid a massive 3.40% (-$1.80) to $51.09 per barrel. The international Brent benchmark had fallen 2.81% (-$1.73) to $59.83—below the $60 psychological threshold that in the past has caused trading panic.

The news of OPEC’s tentative agreement will be met with disappointment from President Donald Trump, who yesterday called on the cartel to keep oil flows as they were, and “not restricted”.

The Joint Ministerial Committee of OPEC announced earlier today that it had officially recommended a production cut to the cartel and its non-OPEC allies of an unspecific volume.

An official OPEC statement is expected later today, although specific figures may not be released until tomorrow when Russia returns to the negotiating table.

By Julianne Geiger 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