8,476 Active Recruiters     Over 2 Million Candidates Globally

  1. Keep me logged in
  2. forgot password

Checkout Jobs Basket (0)

You can checkout a maximum of 150 jobs.

Signup Better for Candidates

  • Create a free virtual CV and let recruiters find you
  • Automatically have your profile matched to suitable Oil & Gas positions
  • Link to your profile using it as a free online CV
  • Store all your employment documents to your profile for easy sending
  • Always receive feedback on positions applied for

Signup Better for Recruiters

  • Suitable candidates automatically matched to your position
  • View candidate profiles for free
  • No more waiting for candidates to respond to job advertisements
  • Only ever pay when you match a candidate to a position
  • No more cold calling and sorting through out dated CVs

Saudis Pledge to Cut Production, Only if Other OPEC Members Stop Cheating

Published in Oil Industry News on Tuesday, 10 December 2019

Graphic for News Item: Saudis Pledge to Cut Production, Only if Other OPEC Members Stop Cheating

Saudi Arabia appeared to be on track to forge a new quid pro quo with fellow OPEC+ members: If you stop cheating, we’ll keep on cutting.

A few hours before the Organization of Petroleum Exporting Countries’ meeting in Vienna, a committee that oversees its deal with non-members, including Russia, recommended the wider group adopt the Saudi proposal and reduce its output quota by 500,000 barrels a day, delegates said.

Hot Tip

Oil and Gas People gives recruiters a live snapshot of the current oil and gas workforce and its availability. Update your profile every 60 days to stay visible to recruiters as actively looking. Better for candidates.. Better for recruiters..

However, the panel left key details unresolved -- such as how much Saudi Arabia will pump under the new regime -- leaving the oil market to wonder whether it was a genuine supply reduction. A change of that magnitude, depending on how it was distributed, could simply formalize the deeper supply curbs the group has already been making for most of this year.

What was becoming clear was new Saudi Oil Minister Prince Abdulaziz bin Salman’s reluctance to endorse the status quo, in which countries including Iraq, Nigeria and Russia have consistently failed to implement their pledged output cuts, leaving the kingdom carrying most of the burden of supporting crude prices.

The new quota is contingent on all countries implementing 100% of their pledged cuts, said the delegates.

“The kingdom has explicitly communicated to OPEC that it will no longer tolerate under-compliance,” said Amrita Sen, chief oil analyst at Energy Aspects Ltd. said before the committee meeting. “If it continues, Saudi Arabia can easily return to producing at or above its current quota.”

For the oil market, a new deal could be a psychological boost as traders fret about possible oversupply next year, but may take relatively few barrels out of the physical market. Saudi Arabia has already been pumping significantly below its official OPEC level, and few are likely to believe that nations such as Iraq, Nigeria or even Russia, which have barely complied with the deal so far this year, are about to start.

The so-called OPEC+ alliance has an agreement to reduce output by about 1.2 million barrels a day since the start of the year in order to eliminate a surplus and bolster crude prices. That deal expires at the end of March, right in the middle of what looks to be a tricky patch for the oil market. Demand growth is slowing and another big expansion in rival production is coming down the pipeline.

Together those factors could create another oversupply that drives international prices back down toward $50 a barrel. That’s too low for most OPEC members to balance their budgets, and would make an unfortunate epilogue for the record-breaking initial public offering of Saudi Arabia’s state oil company, Aramco.

Crude prices jumped 4.2% in New York on Wednesday, the biggest gain since September, as speculation swirled that a deeper OPEC+ cut was coming. West Texas Intermediate crude traded 0.8% higher at $58.91 a barrel as of 9:44 a.m. local time on Thursday.

Prince Abdulaziz has offered little clarity about his intentions. He declined to answer specific questions when he arrived in Vienna on Wednesday, saying simply that the market outlook was “sunny” like the weather. On Thursday, he told reporters he felt good about the meeting. Ministers from the United Arab Emirates and Kuwait, the kingdom’s closest allies, also had little to say.

On Thursday, Nigeria’s Minister of State for Petroleum Resources Timipre Sylva said OPEC would discuss the possibility of further cuts and it would be a “tough decision.” Iran, which is exempt from making cuts because of U.S. sanctions, will support any decision by the other members of the group, Oil Minister Bijan Namdar Zanganeh told reporters.

Source: www.worldoil.com

Please leave comments and feedback below


OpEC Oil and Gas Oil and Gas Tankers, Iran Oil and Gas, OPEC Oil and Gas News, Oil and Gas News

Oil and Gas News Archive

Latest Oil & Gas News

Featured Companies

  • View All JobsOMPA

    Offshore Marine People & Academy (OMPA) is a global provider of personnel and training to the renewables, oil & gas, telecommunications and marine industries.

    With over 15 years' industry experience, we work with candidates to match them to the right roles and equip them with the skills and knowledge needed to succeed. Our job is to exceed your expectations.

    Visit us online: offshorempa.com

  • View All JobsChronos Oil and Gas

    Chronos Oil and Gas is one of the fastest growing and best placed recruitment agencies in the sector.

    With over 300,000 candidates on our database and an international team of specialist recruiters we work with clients to staff major projects around the world.

    Register your CV at www.chronosoilandgas.com

  • View All JobsNatural Resources

    Natural Resources is a UK based recruitment company providing personnel of all disciplines and nationalities worldwide.

    We represent clients and candidates at all levels who operate globally within oil & gas, renewables, nuclear, power, mining, marine, drilling, construction and petrochemicals. Our client base includes energy and construction.

    Visit Natural Resources at natural-resources.com