OPEC extends oil output cut by nine months - analysts comment

Record ID: 875760

  • Title: OPEC extends oil output cut by nine months - analysts comment
  • Date: 25th May 2017
  • Summary: DUBAI, UNITED ARAB EMIRATES (MAY 24, 2017) (REUTERS) (SOUNDBITE) (English) ADAL MIRZA, SNR. OIL WRITER, S&P GLOBAL PLATTS, SAYING: "Will that be enough? It depends on how prices react really because as we've seen, the U.S. producers are very flexible and they respond very quickly to any increases in prices." NEAR JAL, NEW MEXICO, UNITED STATES (RECENT) (REUTERS) OIL DONKEY OIL DRILLING ON EXXON MOBIL DRILLING SITE DRILLING INFORMATION ON EXXON MOBIL DRILLING SITE WINKLER COUNTY, TEXAS, UNITED STATES (RECENT) (REUTERS) VARIOUS OF LILIS ENERGY DRILLING SITE OPERATED BY TRINIDAD MEN STANDING AT AN OIL FIELD OIL DRILL LILIS ENERGY CEO, ARI MIRMAN, AND OFFICIALS TALKING PIPES LONDON, ENGLAND, UK (MAY 25, 2017) (REUTERS) (SOUNDBITE) (English): CHIEF ECONOMIST, WORLD FIRST, JEREMY COOK, SAYING: "People I have spoken to in the shale market and shale operation tend to suggest that while shale is obviously still a thorn in OPEC's side that the production side of it is maybe getting towards some level of peak. So maybe OPEC has a fairly good read on what it can do with the shale output at the moment. So obviously any expanded flow of supply into the market whether it comes from Russia, Saudi Arabia or it comes from the US shale operations are going to dampen down the impact of this output cuts from OPEC members and probably extends there's oversupply that we've had in oil commodity markets from what was originally thought to be this year probably into 2019." WINKLER COUNTY, TEXAS, UNITED STATES (RECENT) (REUTERS) OIL PIPES OIL IN TUBE NEAR JAL, NEW MEXICO, UNITED STATES (RECENT) (REUTERS) VARIOUS OF ENERGY OIL WELL AND STORAGE ON EXXON MOBIL FRACKING SITE OPERATED BY PRO PETRO HOLDING CORP VARIOUS OF WORKERS IN CONTROL CENTRE OPERATING THE SITE VARIOUS OF SCAN STAR DRILLING RIG OIL DONKEY PARSLEY ENERGY DRILLING RIG AT SUNSET
  • Embargoed: 8th June 2017 12:19
  • Keywords: analysts comment by nine months oil output cut OPEC extends
  • Location: VARIOUS, SAUDI ARABIA / ENGLAND, LONDON, UK / DUBAI, UAE
  • City: VARIOUS, SAUDI ARABIA / ENGLAND, LONDON, UK / DUBAI, UAE
  • Country: Saudi Arabia
  • Topics: Commodities Markets,Economic Events
  • Reuters ID: LVA0066IC6JKD
  • Aspect Ratio: 16:9
  • Story Text: Analysts give their views on why OPEC has decided to extend cuts in oil output by nine months to March 2018, according to an OPEC delegate.
    The producer group is battling a global glut of crude after seeing prices halve and revenues drop sharply in the past three years.
    The cuts are likely to be shared again by a dozen non-members led by top oil producer Russia, which reduced output in tandem with the Organization of the Petroleum Exporting Countries from January. Non-OPEC producers meet OPEC later on Thursday.
    OPEC's cuts have helped push oil back above $50 a barrel this year, giving a fiscal boost to producers, many of which rely heavily on energy revenues and have had to burn through foreign-currency reserves to plug holes in their budgets.
    Oil's earlier price decline, which started in 2014, forced Russia and Saudi Arabia to tighten their belts and led to unrest in some producing countries including Venezuela and Nigeria.
    The price rise this year has spurred growth in the U.S. shale industry, which is not participating in the output deal, thus slowing the market's rebalancing with global crude stocks still near record highs.
  • Copyright Holder: REUTERS
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