LONDON/DUBAI: OPEC is determined to keep pumping oil vigorously despite the resulting financial strain even on the policy's chief architect, Saudi Arabia, alarming weaker members who fear prices may slump further towards $20. Any policy U-turn would be possible only if large producers outside the exporters' group, notably Russia, were to join coordinated output cuts. While Moscow may consult OPEC oil ministers before their six-monthly meeting next week, the chances of it helping to halt the price slide remain slim.
Submitted by Dalan McEndree via OilPrice.com, OPEC next gathers December 4 in Vienna, just over a year since Saudi Oil Minister Ali Al-Naimi announced at the previous OPEC winter meeting the Saudi decision to let the oil market determine oil prices rather than to continue Saudi Arabia’s role of guarantor of $100+/bbl oil.
Saudi Oil Minister al-Naimi says it is "difficult, if not impossible" for OPEC or Saudi to give up market share by cutting crude production, and data confirmed Saudi crude oil exports rose to 6.897mln bpd in October, up from 6.722mln bpd in September. This was then followed by the UAE Oil Minister confirming OPEC will not change output levels and has no intention of holding an emergency OPEC meeting.
Submitted by Andy Tully via Oilprice.com, While not predicting that Tehran and six world powers will strike a deal by the new July 10 deadline, a senior Iranian oil official says his country hopes to nearly double its crude exports immediately if and when sanctions are lifted and hopes that OPEC will accommodate this growth by capping production by the cartel’s other members.
VIENNA — OPEC is set to carry on pumping oil nearly flat-out for months more, content that last year’s shock market therapy has revived demand and knocked back growing competition.
With oil prices having stabilized at around US$65 a barrel, some US$20 above their January lows, there’s little appetite within the Organization of the Petroleum Exporting Countries to modify production limits or address Iran’s request to give it more room in the market as sanctions ease.
OPEC oil production was little changed in April near the highest level since November 2012 as Saudi Arabia pumped 10 million barrels a day.
Production by the Organization of Petroleum Exporting Countries slipped 1,000 barrels to 31.295 million a day this month, according to a Bloomberg survey of oil companies, producers and analysts. Last month’s total was revised 267,000 barrels higher to 31.296 million a day, mostly because of a change to the Saudi estimate.
Who could have seen this coming? With oil prices holding at 4-year lows, heavily pressuring around half of US shale production economics, the "secret" US deal (see here and here) with Saudi Arabia to crush Russia via oil over-supply in a slumping demand world appears to be backfiring rapidly for John Kerry and his strategery team.
Despite Saudi Arabia’s best efforts to maintain an image of continuity, the world’s largest oil exporter will face a new set of challenges.
The kingdom’s political machinery moved swiftly Friday to install Crown Prince Salman as the new king and fill other key positions within hours of the 90-year-old king’s death, moves aimed at ensuring a smooth transition of power.
The new king’s equally rapid appointment of his youngest half-brother, Muqrin bin Abdulaziz, as Crown Prince was also designed to stamp out any hint of dissent.