• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 4 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 2 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 1 day "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 4 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days Demonising fossil fuels has caused major grid problem in Australia
  • 5 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 6 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 331 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 8 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
Colombia Could Help Europe Ditch Russian Coal

Colombia Could Help Europe Ditch Russian Coal

Sanctions on Russia have worsened…

World's Largest Oil Trader: OPEC+ Continues To Call The Shots On Oil Prices

OPEC+ will remain the leading factor in oil price movements in the next few months, a senior Vitol executive told the media, as quoted by Bloomberg.

“Control of pricing is very much in the hands of OPEC+,” said Mike Muller, the head of Vitol’s Asian operations. In the United States, he said, “the rig count is simply not there for production to catch up in a way that would be necessary if you needed extra oil.”

That’s quite a table-turning from just three years ago when the U.S., thanks to its second shale oil boom, was considered the leading factor in oil prices as the boom turned the country into the largest oil producer globally.

Crude oil rose closer to $80 at the end of last week, ahead of today’s OPEC+ meeting where it will discuss the next steps in production control. According to some analysts, OPEC+ is unlikely to acquiesce to requests to add more production and bring down prices, not just because it benefits from higher prices but because some members of the cartel simply cannot boost their production capacity so quickly and they don’t have that kind of oil in storage to keep supply higher.

“The near-term price outlook remains supportive,” Stephen Brennock from oil broker PVM told Reuters on Friday. “The current price trend is one for recovery.”

“Whichever way you cut it; shorting oil is only for the brave with very deep pockets,” according to OANDA analyst Jeffrey Halley.

This oil market dynamics may remain in place for longer if the winter in the northern hemisphere turns out as cold as expected. With gas reserves running lower than the five-year average in Europe and energy shortages in China forcing factory shutdowns and fear of blackouts, demand for oil is likely to remain robust for quite some time despite gloomy long-term predictions. And this means OPEC+ will continue calling the shots, led by the members with the most spare capacity.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

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