Category Archives: OPEC meeting

IEA expects U.S. shale output rise if OPEC pushes oil to $60 

U.S. shale oil producers will increase their output if oil prices hit $60 a barrel, meaning OPEC will have to walk a fine line if it curtails production to prop up prices, the head of the International Energy Agency (IEA) said.OPEC members are due to meet in Vienna at the end of the month to push through the first output limiting deal since 2008.”If this decision pushes the prices up (to) around $60 dollars, we may well see a significant increase from shale oil from the U.S.,” Fatih Birol told Reuters on Wednesday.

Source: IEA expects U.S. shale output rise if OPEC pushes oil to $60 – Business Insider

OPEC Oil Output Deal ‘More Likely Than Not,’ Citigroup’s Morse Says

Ed Morse, the head of commodity research at Citigroup, believes that OPEC and Russia may reach an oil production reduction agreement.  The price of oil has dropped over the last few days after OPEC failed to agree on country quotas during their October 28-29 meeting in Vienna.  Morse stated that output will need to be cut by at least 1 million barrels per day because of Libya’s and Nigeria’s recent production increases.  Citigroup expects to see higher oil prices next year but believe higher prices will catalyze higher production.

Source: OPEC Output Deal ‘More Likely Than Not,’ Citigroup’s Morse Says – Bloomberg

Video: OPEC failure may trigger sharp crude correction – Ole Hansen SAXO Group

The Russian and Saudi energy ministers met ahead of Opec’s late-November deal, but Saxo Bank head of commodity strategy Ole Hansen says the future for oil remains cloudy.He also discusses how the prospect of a deal struck between Opec and non-Opec members has driven oil higher throughout October.But with few Opec producers in a position to reduce their oil production – Iraq, for instance, says it needs its oil revenues to fight ISIS – Hansen fears that any failure to strike a strong deal may trigger a sharp correction in the market.

Source: Opec failure may trigger sharp crude correction: #SaxoStrats | Videos

Saudi Arabia, Iran, Russia Head Towards Showdown In November

The OPEC meeting held at the International Energy Forum in Algeria lasted over four hours and resulted in a face-saving “understanding” that pushed the hard choices off until November. This is probably enough to fend off falling prices because it will partially appease speculators. Meanwhile OPEC countries have not officially committed to anything but have laid the platform for a potential deal.

Source: Saudi Arabia, Iran, Russia Head Towards Showdown In November

OPEC Reaches Understanding on Output Cut – WSJ

OPEC on Wednesday reached an understanding that a crude-oil-production cut is needed to lift petroleum prices, people familiar with the matter said, but the cartel will wait until November to finalize a plan to tackle a supply glut that has lasted longer than expected.The consensus was reached after a 4½ hour meeting in the Algerian capital. It represents the first acknowledgment from the Organization of the Petroleum Exporting Countries that it needed to take action to alleviate an oil-price slump that has wreaked havoc on the economies of oil producers. OPEC, the 14-nation cartel that controls over a third of world oil output, has been producing at record levels as its members compete among themselves for buyers.A person familiar with the matter said the cartel was considering cutting production to between 32.5 million barrels a day and 33 million barrels a day—down from August levels of 33.2 million barrels a day.

Source: OPEC Reaches Understanding on Output Cut – WSJ