OPEC Really Can Keep Secrets

https://oilprice.com/Energy/Energy-General/OPECh-Ministers-Keep-Mum-On-Oil-Production-Plans.html

OPEC really can keep secrets, I guess. Usually they let something slip out (purposefully I'm sure). The fact that nothing has leaked yet about this meeting is interesting.

What they did say is there was still a need for "sustaining the current partnership in order to continuously adapt to ongoing market dynamics in pursuit of the interests of consumers and producers."

My OPEC decoder ring says that translates to "Hey, our OPEC/NOPEC price fixing shenanigans are really working! Let's keep doing this for....like...ever!"

 @Tom Kirkman, what does your decoder ring say? We can compare notes.

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2 hours ago, Rodent said:

My OPEC decoder ring says that translates to "Hey, our OPEC/NOPEC price fixing shenanigans are really working! Let's keep doing this for....like...ever!"

Yep, pretty much agreed, I've commented recently that OPEC has done a decent job in helping the oil industry to recover and stabilize a bit.  OPEC has roped in Russia, Oman, and now even Trump in trying to gain a relatively global consensus on where global oil production should be at. 

The uncontrollable wild card, of course, is independent U.S. Shale Oil producers, who will likely remain a herd of cats for the forseeable future.  And there's no skilled cat herders around that I can see.

One thing that the new OPEC + Frenemies clubhouse lacks is a dominant Alpha figure who can clearly lead the global oil producers into a consensus.  Al-Naimi is no longer calling the shots.  But I should voice discontent too loudly, because the current approach seems to be getting some darn good results.

For lurkers, here's a few of my recent comments where I discuss OPEC oil production cuts and consensus in a bit more detail:

 

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Just came across this in a report about Trump's request to OPEC and Russia to raise output by a million bpd:

"The U.S. request follows Russian and Saudi discussions that started last month about an output hike for the first time since 2016, when they began cutting production by a 1.8 million barrels per day.

Saudi Arabia and its Gulf allies only want to raise output by 300,000 barrels per day, but Russia favors raising production by 800,000 bpd, sources told Bloomberg, but Reuters sources said the two sides are looking at raising production by 1 million bpd."

Don't you just love "sources"? I sure do.

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I think the US administration hopes the sanctions will work and highly reduce iranian oil output and so asks OPEC to balance with a production hike. But I'm not sure the OPEC will share the US assumptions.

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I can keep secrets, too, particularly on subjects on which I know little and understand less. That may well describe OPEC.

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I thought that it might be interesting to display a comparison of OPEC's history of price management with that of the Seven Sisters prior to their turning the job over to OPEC. This may provide some perspective as you ponder whether to expect OPEC to achieve either their or your wishes.

5b1c1967367cb_OilPriceHistorycopy.thumb.png.f04df445fb42dd263d707074e732fd4d.png

 

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