{"id":22716,"date":"2017-02-09T20:20:00","date_gmt":"2017-02-10T01:20:00","guid":{"rendered":"http:\/\/olduvai.ca\/?p=22716"},"modified":"2017-02-09T20:20:00","modified_gmt":"2017-02-10T01:20:00","slug":"opec-production-cut-may-need-to-be-extended-oil-ministers","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=22716","title":{"rendered":"OPEC Production Cut May Need to Be Extended: Oil Ministers"},"content":{"rendered":"

OPEC Production Cut May Need to Be Extended: Oil Ministers<\/a><\/h3>\n\"Production\"<\/picture>\n
\n

The oil ministers of Iran and Qatar have\u00a0suggested<\/a>\u00a0that OPEC\u2019s production cut agreement may have to be extended beyond the June deadline, despite an almost 100-percent compliance rate.<\/p>\n

The comments come a day after the American Petroleum Institute\u00a0reported<\/a>\u00a0the second-largest crude oil inventory increase in history, at 14.227 million barrels, which added fuel to worries that production cut efforts are not enough to rebalance the market.<\/p>\n

Iran\u2019s Oil Minister, Bijan Zanganeh, told Iranian media after a meeting with his Venezuelan counterpart that the option of extending the cut needs further study, but, he said, \u201cin principle\u201d the group must do it. Zanganeh also said that most OPEC producers would be happy with oil at US$60 \u2013 a level that has proved difficult to reach.<\/p>\n

Qatar\u2019s Oil Minister Mohammed Al Sada, for his part, spoke at a news conference in Doha, saying that the oil market may rebalance in the third quarter, adding that\u00a0\u201cit\u2019s too early to make a judgment.\u201d<\/em><\/p>\n

At the same time, however, Qatar\u2019s Finance Minister\u00a0said<\/a>\u00a0that the country is comfortable with the current level of oil prices, with expectations that it will be able to plug its budget hole this year, at oil price levels of US$45, as stipulated in the budget.<\/p>\n

The latest update from OPEC on how the production cut was progressing pegged daily production for January at 32.89 million barrels, versus a target of\u00a032.5 million barrels<\/a>. This represented a compliance rate of 91 percent and suggested that nearly everyone is on board with the market rebalancing effort.<\/p>\n

Iraq is still producing 130,000 bpd more than agreed, but as a whole, the cartel is exceeding expectations of compliance. This, however, seems to be insufficiently lifting benchmark prices. After API\u2019s report yesterday, WTI slipped below US$52 and Brent dropped below US$55.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

OPEC Production Cut May Need to Be Extended: Oil Ministers The oil ministers of Iran and Qatar have\u00a0suggested\u00a0that OPEC\u2019s production cut agreement may have to be extended beyond the June deadline, despite an almost 100-percent compliance rate. The comments come a day after the American Petroleum Institute\u00a0reported\u00a0the second-largest crude oil inventory increase in history, at […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[441,13719,595,9993,600,1026,846],"class_list":["post-22716","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-iran","tag-irina-slav","tag-oil-production","tag-oilprce-com","tag-opec","tag-qatar","tag-us-shale-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22716"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22716\/revisions"}],"predecessor-version":[{"id":22717,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22716\/revisions\/22717"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}