Members of the Organization of the Petroleum Exporting Countries (OPEC) earned about $433 billion in net oil export revenues in 2016, the lowest since 2004, according to the U.S. Department of Energy and its Energy Information Administration.
All eyes are once-again on the anticipated extension of the output product cut agreed between OPEC and non-OPEC producers, with speculation and potential outcomes being voiced ahead of the Thursday’s meeting in Vienna.
Crude oil producers have called for their industry to receive the same national security attention from the Trump administration as steel and aluminum, Kallanish Energy sister publication Kallanish learns from the Panhandle Import Reduction Initiative (PIRI).
The willingness of Saudi Arabia, Russia and ostensibly the rest of OPEC to extend the production cut isn’t a surprise, except for the addition to the first quarter of 2018, the U.S. energy research firm ESAI Energy said in a memo on Tuesday.
There's a good chance OPEC, Russia and other producers could deepen production cuts by as many as 500,000 barrels per day (BPD) when they agree to a new deal later this month, according to Citigroup.
Nearly ten days before OPEC members decide whether to prolong the oil output cut agreed with non-OPEC producers beyond June, the International Energy Agency said the market rebalancing is “essentially here” and will soon start to accelerate.
U.S. producers have dramatically reduced the use of hedging, a move that some industry watchers say could cuse a break in production gains that have kept prices relatively low, Kallanish Energy learns.
The joint statement by the OPEC’s largest oil producer, Saudi Arabia, and its counterpart outside the cartel, Russia, that their output cut agreement needed to be extended until March 2018, drove crude oil price up over 2% on Monday.