• 5 hours Tesla Is “Headed For A Brick Wall”
  • 10 hours Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 14 hours IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 15 hours Goldman Bullish On Oil Markets
  • 17 hours OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 19 hours Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 21 hours Syria Aims To Begin Offshore Gas Exploration In 2019
  • 23 hours Australian Watchdog Blocks BP Fuel Station Acquisition
  • 1 day Colombia Boosts Oil & Gas Investment
  • 1 day Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 2 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 2 days Aramco On The Hunt For IPO Global Coordinators
  • 2 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 2 days India Feels the Pinch As Oil Prices Rise
  • 2 days Aramco Announces $40 Billion Investment Program
  • 2 days Top Insurer Axa To Exit Oil Sands
  • 3 days API Reports Huge Crude Draw
  • 3 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 3 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 3 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 3 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 3 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 3 days Exxon To Start Reporting On Climate Change Effect
  • 3 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 4 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 4 days Forties Pipeline Could Remain Shuttered For Weeks
  • 4 days Desjardins Ends Energy Loan Moratorium
  • 4 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 4 days Russia May Turn To Cryptocurrencies For Oil Trade
  • 4 days Iraq-Iran Oil Swap Deal To Run For 1 Year
  • 6 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
  • 7 days Mexico Blames Brazil For Failing Auction
  • 7 days Norway Allows Eni To Restart Goliat Oil Field In Barents Sea
  • 7 days Malaysia Suggests Muslim Countries Stop Trading Oil In U.S. Dollars
  • 7 days Kinder Morgan Wins Appeal To Start Trans Mountain Work
  • 7 days Mexico Cancels Deepwater JV Tender Due To Lack Of Interest
  • 7 days Oil Drillers Give Cold Shoulder To Alaska Bidding Round
  • 7 days Budweiser Bets On Tesla To Replace Its Fleet
  • 8 days Forties Pipeline And Nearby Terminal Disrupted After Oil Leak
  • 8 days Major Nigerian Union Threatens Strike After Mass Firing Of New Members

Breaking News:

Tesla Is “Headed For A Brick Wall”

Is Oil About To Collapse?

Is Oil About To Collapse?

WTI could be about to…

Research Unveils New Promising Biofuel

Research Unveils New Promising Biofuel

New research suggests that young…

OPEC/Non-OPEC Overproduce 470,000 Bpd Above Commitment

Oil

Stronger-than-expected oil demand growth may be tilting the market to rebalancing, but confidence in any sustained rebalancing is suppressed on the back of OPEC and non-OPEC producers’ signals of weakening resolve, the International Energy Agency (IEA) said in its August report on Friday.

Together, the 22 signatories to the oil output cut deal are producing about 470,000 bpd above the combined level they have committed to keep, according to the IEA, so promises of increased demand and reaffirmations of signatories to the production cuts are falling on mostly deaf ears.  

“There would be more confidence that re-balancing is here to stay if some producers party to the output agreements were not, just as they are gaining the upper hand, showing signs of weakening their resolve,” the international agency noted.

At the beginning of this week, OPEC held a meeting with some of the producers and cited its members Iraq and the UAE, as well as non-OPEC Kazakhstan and Malaysia, as laggards in compliance, but added that they “all expressed their full support for the existing monitoring mechanism and their willingness to fully cooperate.”  

On Thursday, the cartel said that its production increased in July, reporting a daily rate of 32.869 million barrels, up by 172,600 bpd compared to June. Libya, Nigeria, and Saudi Arabia were the main drivers behind the OPEC production increase.

While Libya and Nigeria are exempt from the deal, the other OPEC members are not doing “whatever it takes” to clear the glut.

Related: China Prepares For A Natural Gas Import Boom

According to the IEA, OPEC’s compliance rate dropped in July again, to a new low this year of 75 percent. Year-to-date compliance within OPEC is 87 percent. Compliance within the non-OPEC countries part of the deal is worse—at 67 percent last month, the IEA has calculated.

“If re-balancing is to be maintained, the producers that are committed to seeing the task through to March 2018 need to convince the market that they are in it together. It is not entirely clear that this is the case today,” the agency said.

By Tsvetana Paraskova for Oilrprice.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