Russia plans to meet with some OPEC and non-OPEC nations on Friday to discuss unresolved issues related to a planned oil-output cut before wider talks the following day in Vienna, a Russian government source told Reuters.
At the bottom of the energy cycle we know that low oil prices put companies in a rut, which lead to cuts in investment, which eventually reduced production, which then evaporated oil gluts. That process may accelerate with a little help from our friends in OPEC.
Despite all the talk about rising rig counts and the resilience of shale producers, the Energy Information Administration is predicting that U.S. production of both oil and natural gas is set to fall. In fact, for natural gas, this is a major event as this year will be the first time since the beginning of the shale revolution in 2005 that natural gas production would fall year-over-year.
Crude oil traders take pause ahead of oil inventories as angst about the Dec. 10 meeting between OPEC and non-OPEC nations this coming Saturday takes hold. While some are worried that somehow this meeting will derail the recent OPEC production cut accord, the Saudis say they, "absolutely expects non-OPEC producers to reduce their production.
Oil prices fell 1.5 percent to steady at around $53 a barrel on Friday after the biggest weekly rally since 2009 following OPEC's decision this week to cut crude output in order to rein in a global glut.
Russia plans to use its post-Soviet era record high November oil production as its baseline when it cuts output under this week's deal with OPEC, Deputy Energy Minister Kirill Molodtsov said on Friday.
This is a big OPEC’ing deal. While the naysayers said it could not be done, OPEC went ahead and did it anyway. The cartel agreed to cut production by 1.2 million barrels a day(mbd) to 32.5 mbd and has enticed non-OPEC producers to add another 600,000 barrels. Now that the months in making the deal is done, what does this mean for oil as well as the outside market.
OPEC has a "technical deal" that could be solidified at a technical meeting this week in Vienna. All the major players are saying they are optimistic that a deal will be reached barring any last-minute blow ups. Saudi Arabia, Russia, Iraq and Iran all say that a production deal is within reach and it is possible that even the skeptics are starting to believe it.