Are Traders Overlooking The Real Oil Price Influencer?

1 Aug 2017   Prices

Was the meeting between the OPEC and non-OPEC oil ministers in St Petersburg, Russia on 24 July a game changer or not? There were high hopes for additional production cuts, which were partially realized, but just what does the playbook look like? 1) Saudi Arabia announced its intention to make further cuts to bolster flagging oil prices. Saudi minister Khaled al-Falih said that Saudi oil exports would be limited to 6.6 million barrels per day, a decline of about a million barrels or almost 14 percent compared to last year. Sounds impressive, but note that’s exports, not production. 2) Nigeria agreed voluntarily to limit its production to 1.8 million bpd (but only once or if it reaches that level). But Libya with a target of 1.25 million bpd remains exempt. 3) Non-compliance remains an issue for OPEC and non-OPEC participants alike. For instance, Iraq’s OPEC compliance has fallen to […]

Comments are closed.