{"id":57244,"date":"2021-03-25T06:48:07","date_gmt":"2021-03-25T11:48:07","guid":{"rendered":"https:\/\/olduvai.ca\/?p=57244"},"modified":"2021-03-25T06:48:07","modified_gmt":"2021-03-25T11:48:07","slug":"opec-will-keep-a-lid-on-oil-production","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=57244","title":{"rendered":"OPEC+ Will Keep A Lid On Oil Production"},"content":{"rendered":"

OPEC+ Will Keep A Lid On Oil Production<\/a><\/h3>\n
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OPEC+ will likely decide to keep oil production essentially steady for another month, according to four Reuters sources.<\/p>\n

Saudi Arabia and the UAE have both spoke out in favor of the need to tread lightly when it comes to how much oil is put into the market. And this week is perhaps proof positive that the group would be wise to heed.<\/p>\n

On Tuesday this week, the price of\u00a0Brent crude<\/a>\u00a0plunged to $60.86 per barrel from $69.63 per barrel on March 11. By Wednesday, the price had rebounded to nearly $64 per barrel\u2014up more than 5% on the day.<\/p>\n

The dramatic price fluctuations are attributable to a variety of events, including U.S. oil inventory figures, another round of lockdowns in the EU, AstraZeneca vaccine safety and efficacy concerns, and a vessel stuck in the Suez canal causing a traffic jam of oil tankers.<\/p>\n

No matter the reason for the price swings, the data suggests that the market is still sensitive to stimuli\u2014bullish or bearish, and nothing but a sustained increase in demand is likely to cure that.<\/p>\n

Even if OPEC holds production steady for April\u2014or allows a couple of eager producers to ramp up just slightly\u2014there remain a couple of wildcards that threaten OPEC\u2019s ability to keep supplies tight: Libya and Iran.<\/p>\n

Libya, complete with its unified government and exempt from OPEC\u2019s production cut agreement, has plans\u2014and now perhaps the ability\u2014to increase its oil production. Libya\u2019s ambitions are to lift its oil production to\u00a01.45 million bpd<\/a>\u00a0by the end of the year from 1.3 million bpd now.<\/p>\n

Iran and Venezuela are also exempt from the production cuts. Iran\u2019s oil exports have been on the rise, and Venezuela\u2019s production has been rising, even if only slightly.<\/p>\n

Julianne Geiger, Oilprice.com, opec+, oil production<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

OPEC+ Will Keep A Lid On Oil Production OPEC+ will likely decide to keep oil production essentially steady for another month, according to four Reuters sources. Saudi Arabia and the UAE have both spoke out in favor of the need to tread lightly when it comes to how much oil is put into the market. […]<\/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":[11731,595,5332,25704],"class_list":["post-57244","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-julianne-geiger","tag-oil-production","tag-oilprice-com","tag-opec-2"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57244","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=57244"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57244\/revisions"}],"predecessor-version":[{"id":57245,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57244\/revisions\/57245"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=57244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=57244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=57244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}