{"id":45743,"date":"2019-04-29T09:47:22","date_gmt":"2019-04-29T14:47:22","guid":{"rendered":"https:\/\/olduvai.ca\/?p=45743"},"modified":"2019-04-29T09:47:30","modified_gmt":"2019-04-29T14:47:30","slug":"why-an-opec-oil-supply-surge-wont-happen","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=45743","title":{"rendered":"Why An OPEC Oil Supply Surge Won\u2019t Happen"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/oilprice.com\/Energy\/Energy-General\/Why-An-OPEC-Oil-Supply-Surge-Wont-Happen.html\">Why An OPEC Oil Supply Surge Won\u2019t Happen<\/a><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/13e2e34f170e89103a55580ec99f3ff6.jpg\" alt=\"Oil well Middle East\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The end of the Iranian sanction waivers by the Trump Administration has put oil traders on edge.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While most analysts are optimistic about OPEC leader Saudi Arabia being able to fill the gap left by lower Iranian oil exports, reality could be totally different. Looking at the ongoing discussions between OPEC\u2019s two key members, Saudi Arabia and the UAE, there are no real signs that the Kingdom of Oil will be willing to increase its overall oil production to keep prices at the pump low in oil importing nations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The real crux at present is what the market will do when, on the 2<sup>nd<\/sup>&nbsp;of May, the Iran sanction waivers end. History has shown that oil importers are very well equipped to take mitigating measures to counter the effects of the Iran sanctions. Saudi Arabia, and others, will have to be very careful to stabilize the market without falling into a Trumpian trap, which could result in an oversupply situation in the short term.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At present, all signs point to higher oil prices. If no real additional oil is brought onto the market, shortages will become visible within months. Statements made by U.S. president Trump and U.S. Secretary of State Mike Pompeo that Saudi Arabia and the UAE will add supplies to counter the loss of Iranian volumes are currently only wishful thinking, and not based on any hard promises from Riyadh or Abu Dhabi.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">OPEC\u2019s leaders are in a powerful position to react to Trump\u2019s calls for additional volumes and lower prices as they wish. Washington\u2019s strategy may well have backfired, as U.S. shale will not be able to supply the markets with the necessary crude grades. At the same time, national oil companies are willing to take a backseat, as long as OPEC+ production cuts are in place.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why An OPEC Oil Supply Surge Won\u2019t Happen The end of the Iranian sanction waivers by the Trump Administration has put oil traders on edge. While most analysts are optimistic about OPEC leader Saudi Arabia being able to fill the gap left by lower Iranian oil exports, reality could be totally different. Looking at the [&hellip;]<\/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":[15095,1997,441,596,600,701],"class_list":["post-45743","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-cyril-widdershoven","tag-economic-sanctions","tag-iran","tag-oil-supply","tag-opec","tag-saudi-arabia"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45743","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=45743"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45743\/revisions"}],"predecessor-version":[{"id":45744,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45743\/revisions\/45744"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}