Showing posts from November 26, 2023

Oil prices: why the production cuts failed to do the magic - this time?

  Estimated oil production cuts in 2024 by country The OPEC+ meeting that took place yesterday, having been rescheduled for inexplicable reasons after four days, did not live up to the hype created by certain media about deepening production cuts. Nor did it achieve its intended goal, judging by the unusual market response in the aftermath of the meeting; the prices did not skyrocket this time! The price of oil in the international markets on Friday, on the contrary,  continued its downward trend, instead. Then, there are misgivings about the official communique , which at best, is vague in detail and at worst, leaves the analysists in a state of nausea, if they keep dissecting the material, phrase for phrase, in extracting the potential, exact numbers.  The markets expected additional cut of 1 million barrels; not only are the numbers announced far below that, but also voluntary; that means, the individual member of the OPEC+ has the freedom to choose - perhaps, not cutting any output

Laughing in Quotas, Dancing to Baselines: trials and tribulations of OPEC+ in verse!

  Trials and tribulations of the OPEC+ All eyes are on the rescheduled meeting of the OPEC+ that is going to take place tomorrow online, if they have overcome the stumbling blocks that led to the unexpected impasse.  It is the 187th OPEC conference, 51st JMMC meeting and 36th ONOMM combined. Undoubtedly, the meeting is going to be crucial for the cartel in light of price slump and failure of the existing production cuts to boost the prices. Weekly oil prices It's no secret three are disagreements over the production quotas involving three African producers for 2024. Analysts say Angola, Nigeria and Congo want new production quotas, if implemented,  could potentially derail the plan of Saudi Arabia and Russia in keeping the production low. In the presence of rising inflation and its inevitable impact on the cost of living, the African countries may have tried their best to change the status quo.  The success/failure of their collective effort may be laid bare during the forthcoming

Oil Prices Tumble as OPEC+ Postpones Meeting; OPEC+ and IEA lock horns over renewables and peak oil demand!

OPEC+ and IEA lock horns... On November 22, 2023, the Organization of the Petroleum Exporting Countries (OPEC) and Russia, collectively known as the OPEC+, surprised the energy markets by announcing that their upcoming meeting, scheduled for November 26, would be postponed. The meeting had been scheduled to discuss the production levels for the next year, 2024. Not only did the bad news shock the market, but also pushed the price of oil down  by more than 5%, as analysts sensed that something has sprung into existence that was not conducive for the anticipated, further production cuts. Hourly Oil prices -  Monday A bone of contention, according to some analysts, appears to be over the collective output: is it going to be maintained at the current level or going to be deepened further? The OPEC+, however, implied that the cartel wanted more time to gauge the global economic outlook before making a decision, despite a space of one week being not enough to embark on a serious study on

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