{"id":26700,"date":"2017-10-11T06:26:29","date_gmt":"2017-10-11T11:26:29","guid":{"rendered":"http:\/\/olduvai.ca\/?p=26700"},"modified":"2017-10-11T06:26:29","modified_gmt":"2017-10-11T11:26:29","slug":"opec-to-take-drastic-action-despite-shale-slowdown","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=26700","title":{"rendered":"OPEC To Take Drastic Action Despite Shale Slowdown"},"content":{"rendered":"

OPEC To Take Drastic Action Despite Shale Slowdown<\/a>\"Oil\"<\/picture><\/h3>\n
\n

WTI recently dipped below $50 per barrel for the first time in a month, erasing the strong September rally. It\u2019s no coincidence that after two weeks of price declines, OPEC has tried to talk up the oil market again, hinting that more drastic action could be forthcoming.<\/p>\n

Echoing the world\u2019s top central bankers, OPEC\u2019s Secretary General said that the oil cartel might need to take \u201cextraordinary\u201d measures to balance the oil market next year. \u201cThere is a growing consensus that, number one, the re-balancing process is underway,\u201d OPEC\u2019s Mohammad Barkindo told reporters<\/a> on Sunday in New Delhi. \u201cNumber two, to sustain this into next year, some extraordinary measures may have to be taken in order to restore this stability on a sustainable basis going forward.\u201d<\/p>\n

As always, OPEC is vague on the specifics, but the working assumption is that the group will agree to an extension of the cuts until at least mid-2018, or perhaps even as late as through the end of the year. There\u2019s been some discussion about deeper production cuts, but there aren\u2019t a ton of analysts who see OPEC going that far, despite Barkindo\u2019s cryptic language.<\/p>\n

Meanwhile, Saudi Arabia engaged<\/a> in a bit of its own psy-ops with the oil market on Monday, saying that it was taking \u201cunprecedented\u201d steps to cut its oil exports. Saudi Aramco said it would lower exports by 560,000 bpd next month, \u201cthe deepest customer allocation cuts in its history.\u201d<\/p>\n

The comments are consistent with the country\u2019s longstanding pattern of trying to jawbone the market when it wants higher prices. Based on Monday\u2019s activity, the effort didn\u2019t work. \u201cThe fact that we did not get any significant strength from the Saudi news is rather disheartening for the bulls,\u201d Stephen Schork, an analyst and author of the Schork Report, told the WSJ<\/a>. \u201cThe market is very skeptical of this.\u201d <\/a><\/strong><\/p>\n

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

OPEC To Take Drastic Action Despite Shale Slowdown WTI recently dipped below $50 per barrel for the first time in a month, erasing the strong September rally. It\u2019s no coincidence that after two weeks of price declines, OPEC has tried to talk up the oil market again, hinting that more drastic action could be forthcoming. […]<\/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":[3],"tags":[16408,6010,5332,600,846],"class_list":["post-26700","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-mohammed-barkindo","tag-nick-cunningham","tag-oilprice-com","tag-opec","tag-us-shale-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26700","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=26700"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26700\/revisions"}],"predecessor-version":[{"id":26701,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26700\/revisions\/26701"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}