Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Monday, 18 June 07:40 (GMT -05:00)



Stock and commodities markets

OPEC Doesn't Like Russia's Pace of Oil Production Cut


As expected by international experts, the ambitious plan of cutting oil production by OPEC and other oil producers led by Russia are seeing some difficulties during the implementation phase. The OPEC is indicating slower-than-expected oil production cuts in 4 non-OPEC countries participating in the agreement.

 

 

 

 

 

 

 
Shortly after signing the agreement to cut oil production simultaneously, the OPEC members found themselves betrayed. According to the cartel’s estimates, the production cuts outside of the cartel are implemented only by 50% while inside the OPEC this is 92%. Even though the OPEC hasn’t made any open statements criticizing their non-OPEC partners, the cartel may well show their discontent with Russia and other participants of the agreement in the near future.
 
According to the agreement, Russia should be the one responsible for the biggest share of non-OPEC production cuts. However, instead of being cut, Russia’s oil export seems to be growing. On top of that, the OPEC is going to discuss the situation for those non-OPEC countries in February.
 

non%20OPEC%20582%202017.jpg

Even though the 4 countries were not specified during the statement, experts say that Russia is likely to be on the list. Over the first half of 2017, the non-OPEC participants of the oil agreement are obliged to cut their total production by 558K barrels a day relatively to the production volume seen in October 2016, with Russia being responsible for 300K bpd of that production cut. As for the OPEC, they have agreed to cut their total production by 1.2 million barrels per day. According to the February report, the OPEC’s production cuts reached 890K barrels per day.
 
The biggest cuts were implemented by Saudi Arabia, Iraq and the United Arab Emirates. At the same time, the oil production in Nigeria, Libya, and Iran increased. As of Russia, the planned production cuts are going to be implemented in several steps. Russia claims to have cut the local oil production by 117K barrels per day in January 2017 as opposed to the levels of October 2016. If that’s really the case, that’s twice as much as planned to be cut over the reporting period. This seems to be less oil production but more oil export for Russia.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Saudi Arabia Raises Oil Prices for Asian and European Buyers

Saudi Arabia is reported to have raised oil prices for Asian and European importers. This is confirmed by Bloomberg.

Publication date: 09 June 10:26 PM

Market Players Play Oil Price Guessing Games

The international market of crude oil seems to be in panic. Yet, the panic is snowballing. The reason for that is said to be the statement made by Russian Energy Minister Alexander Novak about the possibility of easing the OPEC+ deal in June 2018, which came as a surprise to the international trading community.

 
Publication date: 29 May 01:41 PM

USA Outpaces Russia to Become World’s Biggest Oil Producer

In March 2018, the United States outpaced Russia in terms of oil production. This means that the USA is now the biggest producer of crude oil in the world.

Publication date: 24 May 11:26 AM

Crude Oil Goes Above $80/b, Morgan Stanley Improves Oil Forecast

On Thursday, May 17th, Brent oil exceeded $80/b for the first time in 3,5 years. The last time the price reached this level was on November 25th, 2014.

Publication date: 17 May 11:20 AM

Oil Prices At $79/b, Russian Ruble Still Weak. Why?

On Tuesday, May 15th, Brent oil reached $79/b. Strange as it may seem, the Russian Ruble hasn’t reacted to this so far, even though this always has been a positive sign for Russia’s national economy and currency heavily reliant on crude oil prices. Moreover, the currency has been going slightly down for a while despite being backed by higher oil prices.

Publication date: 15 May 01:19 PM

Russia Isn’t Interested In OPEC+ Anymore

Right in advanced of the forthcoming OPEC+ summit some experts doubt that Russia is still interested in the agreement. The strategic objectives of the OPEC+ deal are almost reached. The imbalance in the global oil market has almost been eliminated. The cost of a barrel of Brent oil has increased by more than 100% since late 2016. At this point Brent oil is trading above 70 dollars per barrel. On Q1 2018, the OPEC made 400 million dollars a day more than 12 months before.

Publication date: 28 April 07:57 AM

Who Loses and Wins from Oil Prices At $70/b?

High oil prices have two sides of one coin. On the one hand, while oil producers are  benefiting from today’s oil prices over $70/b, this seems to be  creating an extra pain for oil consumers worldwide. What exactly has been happening to oil-producing economies?

Publication date: 28 April 06:10 AM

American Oil Export to Europe Quadruples Thanks to OPEC+

As predicted by many experts, the OPEC+ agreement has been favoring American shale oil producers. The export of American oil to Europe has quadrupled. The thing is that the agreement between the OPEC and Russia-led non-OPEC oil producers pushed oil prices high enough to make American shale oil production profitable again.

Publication date: 26 April 05:26 AM

Russian Oil Production Is About To Peak and Start Declining in the Near Future

According to Finanz, with reference to the International Energy Agency, Russia has been benefitting from its oil production and export for decades. However, this is about to change in the future since the Russian oil industry is about to see its production peak, which means it will inevitably start going down further down the road.

Publication date: 16 April 05:31 AM

US-China Trade War Drops Oil Prices

The trade war between the United States and China is underway. Yet, it has already led to some consequences. For example, international experts say that this war has been the reason for the current weakness of the global market of cryptocurrencies. At the same times, Finanz experts claim that this trade war has dropped oil prices.

Publication date: 06 April 01:09 PM