Iran says OPEC doesn't want oil over $60

[Rodent + 1,424]

Not sure how many members are on board with that, but I think Iraq is probably gung ho for higher oil prices, what with its disregard for the production cut pact anyway. Venezuela could use some higher oil prices too--their lowered production is not purposeful and higher oil can be a benefit only for them. 

Others on the list that would be okay with higher oil prices, despite shale's almost certain ramp up as a result? 

[TraderTate + 186]

Well, Russia doesn't need oil prices to be as high as the Saudis do ... so I'm not sure, either how many OPEC members would be on board with that. Certainly, Russia has the budgetary advantage here...

[Marina Schwarz + 1,576]

I can't think of anyone who wouldn't like higher oil prices except Russia, which would be fine at $50 a barrel. And Russia's not OPEC. You should have thought about that, OPEC, before you extended the deal. Plus, there was word on the web that $60 was the minimu OPEC was fighting for. Now this... 

[TomTom + 183]

What's wrong with OPEC!

[Rodent + 1,424]

1 hour ago, TomTom said:

What's wrong with OPEC!

Yeah, talk about Goldilocks. First prices are too low, now they're too high. 

Boo hoo, OPEC. It's like the good cop, bad cop from the Lego Movie.

[Rodent + 1,424]

8 hours ago, Marina Schwarz said:

I can't think of anyone who wouldn't like higher oil prices except Russia, which would be fine at $50 a barrel. And Russia's not OPEC. You should have thought about that, OPEC, before you extended the deal. Plus, there was word on the web that $60 was the minimu OPEC was fighting for. Now this... 

yeah, I mean, Russia said it's fine with $40 oil. But if that's the case, why are they colluding with OPEC?

[Rodent + 1,424]

Actually, now that I think about it, it makes perfect sense. While OPEC is busy curtailing production and losing market share, Russia has stepped in and offered to be part of the deal (leading by example, therefore enticing other non-OPEC members to follow), but cut its own production only modestly, and from a multi-year high at that. Meanwhile, Russia is lapping up some of Saudi Arabia's market share. So I guess while they don't need higher oil prices, they are probably enjoying the additional marketshare that resulted from the cuts. Saudi Arabia probably agreed to this, in exchange for Russia getting other countries on board with the pact, because it would help boost the price of oil, which the Kingdom desperately needs in order to list Aramco.

OPEC's clout is waning--having Russia on board with the cuts was almost a necessity.

 

[TomTom + 183]

Russia on board was a necessity, and also important to get Iran et al. on board, but with these oil prices, Russian companies are already complaining that they're bound to production quota... however, Russia's quota are the most 'relaxed' in the entire OPEC deal

[Marina Schwarz + 1,576]

Exactly, @Rodent! I was thinking the same thing. And now these complaints from the oil companies are sooo arrogant or hilarious, depending on perspective. They played the Arabs and they played them well. What I don't understand is why OPEC wouldn't want prices to stay higher -- because of US shale? As if it's a new threat. Please.

[Rodent + 1,424]

Well, for one, Sharjah CEO (UAE), pointed out in an interview today that the UAE is a net-importer of energy. It exports condensate (same price as oil) but it imports LNG. So, the CEO says, UAE can capitalize on higher oil prices or lower oil prices. UAE has overproduced oil month after month, contrary to its agreement.

So UAE is one member that is disinclined to stick with the OPEC production cut agreement and doesn't give a hoot about higher oil prices.