Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Why OPEC’s new supply deal will add little crude oil to markets

    Why OPEC’s new supply deal will add little crude oil to markets

    June 24, 2018
    Share
    Facebook Twitter LinkedIn WhatsApp
    OPEC headquarters in Vienna, Austria

    24 June 2018, London — The Organization of the Petroleum Exporting Countries agreed in principle on Friday to raise output enough to match a production target it introduced at the beginning of 2017, but which it has undershot ever since.

    Based on compliance in May, only Saudi Arabia has any real scope to add barrels and this would be to the tune of just 60,000 barrels per day, far less than it has said the market requires.

    OPEC will need to find a way to allow producers with spare capacity like Saudi to compensate for countries like Venezuela that do not, something Iran, for example, has opposed.

    The group gathered in Vienna against a backdrop of calls from the United States, China and India to cool down the price of crude and prevent an oil deficit that would hurt the global economy.

    OPEC and partners including Russia and Oman have since last year cut output by 1.8 million bpd. The measure has helped rebalance the market in the past 18 months and lifted oil to around $74 per barrel from as low as $27 in 2016. 

    The organisation, which agreed to restrict output by 1.2 million bpd, has consistently over-complied, largely thanks to involuntary declines in the likes of Venezuela and Angola, but also to Saudi Arabia, which has cut crude output by more than it had pledged to in order to make up for any members that failed to meet their targets.

    Most in the group are now either pumping close to capacity, or are losing barrels involuntarily on a daily basis.

    – Reuters

    Related News

    NNPC raises alarm over sabotage campaign targeting leadership, reforms

    WTO hails Nigeria Customs as continental model for trade facilitation

    Renaissance Africa Energy unites 500 CEOs to advance Nigeria’s oil & gas growth

    E-book
    Resilience Exhibition

    Latest News

    Akwa Ibom, REA partner to expand rural electrification access

    June 29, 2025

    Genesis Energy and Desert Technologies sign Strategic Collaboration Agreement

    June 29, 2025

    Genesis Energy, Desert Technologies sign strategic collaboration agreement to accelerate renewable energy access in Afric

    June 28, 2025

    Akwa Ibom, REA partner to expand rural electrification access 

    June 28, 2025

    NLNG boosts healthcare access, launches laboratory in Bauchi hospital 

    June 28, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.