Tag Archives: OPEC

OPEC says it raises oil output, despite deal to cut | Reuters

OPEC reported an increase in its oil production in September to a multi-year high and raised its forecast for 2017 non-OPEC supply growth, pointing to a larger surplus in the market next year despite the group’s deal to cut output.The Organization of the Petroleum Exporting Countries pumped 33.39 million barrels per day (bpd) last month according to figures OPEC collects from secondary sources, up 220,000 bpd from August, OPEC said in a monthly report on Wednesday.OPEC also raised its forecast of non-OPEC supply next year, saying supply from outside the group would rise by 240,000 bpd, up 40,000 bpd from the earlier forecast, citing a higher forecast for Russia.

Source: OPEC says it raises oil output, despite deal to cut | Reuters

Putin Says Russia Ready to Join OPEC Effort to Limit Oil Supply – Bloomberg

Russia, the world’s largest energy exporter, is ready to join OPEC in limiting oil production with either a freeze or a cut, said President Vladimir Putin.“Russia is ready to join in joint measures to limit output and calls on other oil exporters to do the same,” Putin said on Monday at the World Energy Congress in Istanbul. “In the current situation, we think that a freeze or even a cut in oil production is probably the only proper decision to preserve stability in the global energy market.”

Source: Putin Says Russia Ready to Join OPEC Effort to Limit Oil Supply – Bloomberg

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

The Top Permian Oil Producer Says Rig Counts in the Region Are Going to Soar

The biggest player in the Permian Basin, America’s most coveted oil field, thinks rig counts in region are poised for explosive growth.In an interview with Bloomberg, Pioneer Natural Resources Co. Chief Executive Scott Sheffield predicted that 100 oil rigs will be added in the area considered to be U.S. shale drillers’ version of prime real estate over the next year. Bloomberg Intelligence Analysts Vincent Piazza and Daniel Krauser note that Pioneer has the highest gross production of any driller in the Spraberry and Wolfcamp formations in the Texan oil field.The shale revolution sparked a frenzied rise in U.S. crude production that eventually drove oil prices to their lowest level in more than a decade earlier this year. While prices have since recovered, they’ve failed to sustainably hold above $50 per barrel — and any advances may continue to be capped if drillers boost activity in the productive Permian Basin.

Source: The Top Permian Oil Producer Says Rig Counts in the Region Are Going to Soar

Against All Odds, North Sea Proves Resilient to Oil-Price Slump – Bloomberg

Oil producers in the North Sea were supposed to be among the first victims of OPEC’s battle for market share. Instead their high-cost, decades-old facilities are proving surprisingly resilient to the price slump.

Crude oil and condensate output is likely to continue rising in the U.K. North Sea until 2018 as projects that were sanctioned before crude’s plunge four years ago start up, according to estimates by industry consultant Wood Mackenzie Ltd. Even though production dips after that, output by the end of the decade will still be roughly equal to the 2015 level.

Since 2014, the Organization of Petroleum Exporting Countries has pumped without limits and allowed prices to plunge to 12-year lows to squeeze higher-cost rivals. While the strategy is expected to reduce non-OPEC output by 840,000 barrels a day this year, the battle is far from over. The unexpected stamina of areas like the North Sea, where operators have proved adept at keeping the taps open to keep cash flowing, is adding to the global glut and keeping prices lower for longer.

Source: Against All Odds, North Sea Proves Resilient to Oil-Price Slump – Bloomberg

Oil Glut Set to Worsen as Nigeria and Libya Fields Restart – Bloomberg

Amid the most enduring global oil glut in decades, two OPEC crude producers whose supplies have been crushed by domestic conflicts are preparing to add hundreds of thousands of barrels to world markets within weeks.Libya’s state oil company on Wednesday lifted curbs on crude sales from the ports of Ras Lanuf, Es Sider and Zueitina, potentially unlocking 300,000 barrels a day of supply. In Nigeria, Exxon Mobil Corp. was said to be ready to resume shipments of Qua Iboe crude, the country’s biggest export grade, which averaged about 340,000 barrels a day in shipments last year, according to Bloomberg estimates. On top of that, a second Nigerian grade operated by Royal Dutch Shell Plc is scheduled to restart about 200,000 barrels a day of flow within days.

While there are reasons to be cautious about whether the barrels will actually flow as anticipated, a resumption of those supplies — more than 800,000 barrels a day in all — could more than triple the global surplus that has kept prices at less than half their levels in 2014. It would also come just as members of the Organization of Petroleum Exporting Countries and Russia are set to meet in Algiers later this month to discuss a possible output freeze to steady world oil markets.

Source: Oil Glut Set to Worsen as Nigeria and Libya Fields Restart – Bloomberg

Saudi signals it may hit new oil output record ahead of freeze talks, sources say

Saudi Arabia is sending signals that it could boost its crude oil supplies in August to a new record level, overtaking Russia, the world’s top oil producer, as it gets ready for tough talks next month for a global output freeze pact.Industry sources say the kingdom, already the world’s largest oil exporter, started to raise production from June, after holding it steady for the first half of the year, to meet rising seasonal domestic demand as well as higher exports requirements.Higher production could give it more leverage during talks in September when both OPEC and non-OPEC producers are expected to revive a freeze deal to support oil prices, the sources say.In June, Saudi Arabia pumped 10.55 million barrels of oil per day, and lifted production to 10.67 million bpd in July, the highest in its history.Now the sources expect the OPEC heavyweight to raise its crude supplies to a further record this month as demand inside and outside the kingdom looks healthy.One source from outside OPEC said the Saudis were quietly telling the market output could rise further in August to as high as 10.8-10.9 million bpd.

Source: Saudi signals it may hit new oil output record ahead of freeze talks, sources say

Oil Prices Fall Below $40 As OPEC Ramps Up Output | OilPrice.com

Global oil prices fell below $40 a barrel on Monday, after Reuters’ new survey tallying oil output from OPEC countries showed outputs for the 13-member bloc at record highs when compared to figures in recent history.The overall increase in global crude output has dragged oil prices down 20 percent since they broke above $50 in June.Friday’s survey found that Iraq increased oil output in July, as the national army made gains against the Islamic State’s (ISIS) oil production and supply network.The former Gulf country’s oil officials confirmed on Monday an increase in crude production from 3.175 million barrels in June to 3.2 million barrels in July.Nigeria – a country that has been inundated by separatist attacks on oil facilities by the Niger Delta Avengers and related groups – upped outputs despite militant efforts.To meet an uptick in seasonal demand for oil, Saudi Arabia – OPEC’s de facto leader and top exporter – kept production levels close to record highs in order to limit Iran while it attempts to regain lost market share.The Wall Street Journal reported that Saudi Aramco had also cut its price per barrel to Asia by sizable margins over the weekend.The Iranian oil minister confirmed the oil glut in a statement to Iranian state television on Monday, but insisted that the balance between supply and demand would be restored in due time.American oil drillers added 44 oil rigs last month – the highest amount in any month since April 2014 – according to Baker Hughes latest rig count.OPEC’s key rival, Russia, has been increasing supplies for three straight months as well.

Source: Oil Prices Fall Below $40 As OPEC Ramps Up Output | OilPrice.com

OPEC oil output set to reach record high in July: survey | Reuters

OPEC’s oil output is likely in July to reach its highest in recent history, a Reuters survey found on Friday, as Iraq pumps more and Nigeria manages to export additional crude despite militant attacks on oil installations.Top OPEC exporter Saudi Arabia has kept output close to a record high, the survey found, as it meets seasonally higher domestic demand and focuses on maintaining market share rather than trimming supply to boost prices.Supply from the Organization of the Petroleum Exporting Countries has risen to 33.41 million barrels per day (bpd) in July from a revised 33.31 million bpd in June, according to the survey based on shipping data and information from industry sources.The increase in OPEC production has added to downward pressure on prices. Oil LCOc1 has fallen from a 2016 high near $53 a barrel in June to $42 as of Friday, pressured also by concern about weaker demand.

Source: OPEC oil output set to reach record high in July: survey | Reuters