OPEC Cartel Gaining Influence Over Non-OPEC Producers

[Tom Kirkman + 8,860]

Cartels gonna cartel.

The basic premise of a cartel is to restrict supply, in order to drive up prices for the cartel's goods.

OPEC's global influence over Oil & Gas seemingly waned in the 2014 / 2015 oil crash.  Yes, I was on the bandwagon back then that questioned the relevance of OPEC in the future.  Seems I was wrong.

Now, OPEC + Russia + Oman and other countries are tentatively agreeing to maintaining the cuts in production that were started at the beginning of 2017.

The give and take, push and pull, about whether or not to continue to restrict oil production in order to move oil prices toward triple digits, seems to be ongoing with the OPEC + Buddies + Frenemies crowd.  Despite any tweets from Trump about artificially high oil prices.  And seems they still prefer the direction toward triple digits < cough Aramco IPO cough >

Arab oil ministers stress need for continued OPEC, non-OPEC cooperation

(Reuters) - OPEC and non-OPEC Arab oil ministers stressed the need for continued cooperation between oil producers who are part of a pact for a global supply cut that is due to expire at the end of 2018, Kuwait's state news agency KUNA reported on Sunday.

The Organization of the Petroleum Exporting Countries, Russia and several other producers agreed to cut output by about 1.8 million barrels per day (bpd) starting from January 2017. The curbs have driven down inventories and pushed up oil prices.

OPEC ministers from Saudi Arabia, the United Arab Emirates, Kuwait and Algeria along with their counterpart from non-OPEC Oman gathered in Kuwait on Saturday for an unofficial meeting of a joint ministerial committee that monitors compliance with the agreement.

The ministers "stressed the need to maintain the existing cooperation and continue the successful endeavour carried out by the participating countries," according to a statement by the committee, known as the JMMC, published on KUNA.

"They called for sustaining the current partnership in order to continuously adapt to ongoing market dynamics, in pursuit of the interests of consumers and producers whilst promoting healthy global economic growth." 

...

[Rodent + 1,424]

 

21 hours ago, Tom Kirkman said:

Cartels gonna cartel.

The basic premise of a cartel is to restrict supply, in order to drive up prices for the cartel's goods.

OPEC's global influence over Oil & Gas seemingly waned in the 2014 / 2015 oil crash.  Yes, I was on the bandwagon back then that questioned the relevance of OPEC in the future.  Seems I was wrong.

Now, OPEC + Russia + Oman and other countries are tentatively agreeing to maintaining the cuts in production that were started at the beginning of 2017.

The give and take, push and pull, about whether or not to continue to restrict oil production in order to move oil prices toward triple digits, seems to be ongoing with the OPEC + Buddies + Frenemies crowd.  Despite any tweets from Trump about artificially high oil prices.  And seems they still prefer the direction toward triple digits < cough Aramco IPO cough >

Arab oil ministers stress need for continued OPEC, non-OPEC cooperation

(Reuters) - OPEC and non-OPEC Arab oil ministers stressed the need for continued cooperation between oil producers who are part of a pact for a global supply cut that is due to expire at the end of 2018, Kuwait's state news agency KUNA reported on Sunday.

The Organization of the Petroleum Exporting Countries, Russia and several other producers agreed to cut output by about 1.8 million barrels per day (bpd) starting from January 2017. The curbs have driven down inventories and pushed up oil prices.

OPEC ministers from Saudi Arabia, the United Arab Emirates, Kuwait and Algeria along with their counterpart from non-OPEC Oman gathered in Kuwait on Saturday for an unofficial meeting of a joint ministerial committee that monitors compliance with the agreement.

The ministers "stressed the need to maintain the existing cooperation and continue the successful endeavour carried out by the participating countries," according to a statement by the committee, known as the JMMC, published on KUNA.

"They called for sustaining the current partnership in order to continuously adapt to ongoing market dynamics, in pursuit of the interests of consumers and producers whilst promoting healthy global economic growth." 

...

Well, yes, but notice OPEC had to rally more troops (NOPEC) in order to get the job done. You were right, I think. The cartel as it once was no longer carries the weight that it used to. It still carries weight, because clearly it successfully got Russia et al on board the production cut train. But OPEC alone manipulating the market is no longer as influential as it used to be.

I still wonder just how OPEC was able to get Russia on board.