Oil rises 1% on settlement amid fears of supply shortages

[Adam Montana]

The writing is on the wallllllll!!!

[yota691]

Iraq Is Giving OPEC a Headache

By 

Anthony Dipaola

 and 

Grant Smith

November 20, 2017, 7:01 PM EST Updated on November 21, 2017, 9:10 AM EST

OPEC has an Iraq problem: the group’s second-biggest exporter is lurching between quota busting and production-crimping crisis, clouding the policy-making picture as ministers decide how long they need to extend output curbs.

 

Exports from Iraq’s northern fields plunged by about 40 percent in the first half of November after clashes between the federal army and fighters from the semi-autonomous Kurdish region disrupted fields in the disputed Kirkuk province. After consistently exceeding its output quota all year, Iraqi production dropped in October when the fighting started.

 

The Organization of Petroleum Exporting Countries, due to meet next week in Vienna, is already grappling with volatile production in Nigeria and Libya, and Iraq adds another layer of unpredictability. For policy makers, the short-term disruption risks masking a longer-term truth: Iraq, which only got a production quota last year after decades of exemptions, has never felt comfortable with constraints and wants to maximize the country’s potential output.

 

“Production will remain volatile,” said Issam Chalabi, a consultant and former Iraqi oil minister. While it will be difficult for Iraq to replace barrels lost in the north quickly, Iraq’s “real intention is to reach the 5 million-barrel mark by year-end. Politics is the name of the game.”

 

The uncertainty makes it more difficult for OPEC to judge the global balance of supply and demand next year and make a decision about how long to extend supply curbs. The producers’ group is seeking to build consensus with non-members including Russia on whether to extend beyond March output cuts aimed at mopping up a supply glut.

 

While supplies from Libya and Nigeria -- which don’t have formal production limits under the current OPEC deal -- show some signs of stabilizing, Iraq is becoming more erratic. The country’s output fell last month by 120,000 barrels a day -- the most since January -- as the central government clashed with the Kurds, according to data compiled by Bloomberg. That meant Iraq pumped 4.35 million barrels a day in October, below its OPEC target for the first time this year.

Still, international companies producing in Iraq are pursuing plans to raise production capacity, Oil Minister Jabbar al-Luaibi said in September at a conference in the United Arab Emirates. The government was curtailing output at fields it operates on its own to meet its OPEC quota, he said.

OPEC’s strategy of cuts is showing signs of success in bolstering prices, with Brent trading above $60 a barrel this month after dropping to less than $30 a barrel last year. The benchmark grade gained 8 cents to $62.30 a barrel at 2 p.m. in London.

Fighting over Kirkuk and other regional tensions contributed to the increase in prices, according to Daniel Yergin, vice chairman of IHS Markit.

“This is the first time that we’ve seen regional geopolitics start to flow back into the price of oil” in several years, Yergin said in an interview in Abu Dhabi Nov. 14. “It’s something that OPEC will have to grapple with.”

It’s unclear when flows will resume from oil fields around the northern city of Kirkuk, which still require use of a pipeline held by the Kurds to reach international markets. The pipeline exported 320,000 barrels a day in the first half of November, compared with 565,000 barrels daily on average during the first nine months of the year, according to Bloomberg data.

“The disruptions involving the Kurds could last another six months,” said Jaafar Altaie, managing director of consultant Manaar Group, which operates in Iraq. “Iraq will still be cheating, but the cheating will be intermittent and it will be disruptive.”

Nigeria’s production, which tumbled to the lowest in almost three years last August following a series of militant attacks, has recovered to the point that the country has said it would join the OPEC accord after six months of stability. That calm may yet unravel after militants in the Niger River delta ended their cease-fire earlier this month.

Volatility in Iraq’s output is unlikely to match that of Libya’s, where rival armed factions still compete for control of the country more than six years after the fall of dictator Muammar Al Qaddafi, according to Standard Chartered Plc.

Nonetheless, Iraq is now among the wild cards OPEC needs to take into account, according to Ed Morse, head of commodities research at Citigroup Inc. in New York. “Iraq has now joined them as itinerant, non-dependable supply to the market,” Morse said by phone.

[10 YEARS LATER]

Iraq Is Giving OPEC a Headache : More Headaches coming up !

Take some Excedrin Migraine for that Headache why don't ya. OPEC deserves a couple more headaches.  

[newbieDA]

[Wiljor]

State-owned oil company received no bids last month for Basrah light crude

Iraq, November 27, 2017  Iraq’s hitting a couple of speed bumps as it gears up for 2018 oil sales, after Opec's second-largest producer made unprecedented moves to sell one-off cargoes this year in addition to supplies under long-term contracts. The nation’s state-owned oil marketing company, known as Somo, didn’t award two offers of spot shipments to Asian and European customers over the past month, with traders saying it was probably expecting more than what buyers were willing to pay. That’s a setback for the producer, which has sought to revamp the way it sells crude amid a global glut, weaker prices and increased competition from other Middle East producers as well as US supplies. Iraq began auctioning off some cargoes on the Dubai Mercantile Exchange this year for the first time in a bid to get better value for its supply while also curbing output as part of a deal with other producers. After considering implementing a new pricing methodology from January that would have broken away from the benchmark that top Opec member Saudi Arabia uses, it walked back saying more time was needed to study the proposal. “Somo has to walk a tight rope between trying to capture the maximum value for its oil and its sales,” said Nevyn Nah, a Singapore-based analyst at industry consultant Energy Aspects Ltd. “The only concern is that term holders may reduce their volumes if official prices are too high.” In October, Somo was said to receive no bids in its auction for November supplies of its flagship Basrah Light grade. Only bids at a premium to the oil’s official selling price — set by Iraq for its long-term supply — were permitted, while buyers were valuing the crude at a discount, according to traders who asked not to be identified. The company also failed to award its first ever sell tender via S&P Global Platts this month, after receiving a top bid that was 7 cents a barrel below the crude’s OSP. thenational   http://iraqdailyjournal.com/story-z16277245

[yota691]

Abreihi: Iraq's economy and balance adapted to the low price of oil

29/11/2017 12:00 am

 

BAGHDAD / Shukran al-Fatlawi,

warned and accompanied by fear of the outcome of the meeting of the Organization of Petroleum Exporting Countries (OPEC) in Vienna at the end of this month amid the wishes of Russia not to convince the continuation of the reduction of production, which was held to predict the reality of crude prices in world markets, despite the ambition of most producing countries To acceptable prices for all parties. Economic expert d. "The price of oil is still above $ 60 and oil is on the rise," Ahmed Abrehi told Sabah. "In a month, the price of $ 13 has been rising steadily since mid-year and there are no signs of going down." Budget adjustment  OPEC members are likely to meet with other producers on Nov. 30 to discuss the possibility of continuing cuts after agreeing in January to cut supply by 1.8 million bpd.

 

Abreihi said: "I do not expect only the improvement in the oil market and I do not think there is reason to be pessimistic because prices are still above 60 and the surplus in the oil market has been greatly reduced, but whether there has been new developments in this meeting or otherwise can be addressed for Iraq, Iraq's economy and budget have adapted to a low oil price. " Defeat terrorism , said Abrihi the possibility to benefit from the peace that prevail in Iraq after the defeat of the "Daesh" criminal for the beginning of a new economic policy can promote economic resources and development projects. The Times, for its part, published a report entitled "Warning (OPEC) on the price of oil." Saying that one of the leading oil companies warned that crude oil prices may fall sharply this week if oil ministers of the Organization of Petroleum Exporting Countries (OPEC), Russia and other countries to extend the agreement cuts in global oil production quotas.

 

The report quoted Ian Taylor, chief executive of Vitol, one of the world's largest independent oil companies, as saying that officials in the 14-nation OPEC, which pumps about a third of world oil production and a few other oil exporters, In the world oil production for nine months until the end of 2018. Suspicion, according to experts that a nine-month extension to reduce production by 1.8 million barrels per day, which was agreed last year will end in March next, is the likely outcome of the meeting of Austria next Thursday to those responsible for drawing policy  (OPEC). While the Financial Times published an analysis of the same issue in which doubts were raised ahead of a meeting of oil exporting countries, where the recovery in oil prices began to push the wedge between two of the world's largest oil producers: Saudi Arabia

 

And Russia. The analysis of the newspaper that the recovery of crude oil prices and reach more than $ 60 a barrel this month, has wedged a wedge between Moscow and Riyadh, as Russia expressed its fears that the oil assembly unleashed competitive oil equipment in the global market. At a time when Russian producers believe that the agreement has restricted their production.

Saudi Arabia and Russia, OPEC's biggest oil producer, are poised to agree to extend a deal to cut output in 2018, which economists believe is necessary to continue depleting oil reserves and consuming consumer prices.

[yota691]

Iraq supports extension of production cuts .. Al-Allaibi: 3 options will be discussed at the meeting of OPEC

Jabbar al-Allaibi, Iraq's oil minister,

 

 28 November 2017 11:00 pm

Mubasher: The Iraqi oil minister said he supports the extension of a global agreement to reduce oil production, but did not indicate the preferred duration of the extension .

"We will see tomorrow, but we will agree with all OPEC members, whatever the agreement we will be with, but certainly we are with the extension," Jabbar al-Allaibi told reporters after arriving in Vienna on Tuesday.

Al-Allaibi pointed to three options that will be discussed with the meeting expected tomorrow, six months or nine months or a year to extend the cut production .

"The general principle is that the cuts continue," he said .

Increased  exports of Iraqi crude oil during the last October  by 6.7% on a monthly basis, rising with revenues by 11.9%, according to statistics issued by the "oil Somo ".

According to the Iraqi oil statement, crude oil exports reached 103.73 million barrels last month, with revenues of 5.46 billion dollars, compared with exports of 97.2 million barrels, with revenues of 4.88 million dollars last September . 

On the other hand, Kuwaiti Oil Minister Essam al-Marzouq said on Tuesday that no agreement has yet been reached on the possible extension of oil production cuts .

Two sources told Reuters Reuters early on Tuesday that an Opec committee and independent producers had recommended extending global oil supply cuts until the end of next year with an option to review the deal in June 2018 .

The Organization of Petroleum Exporting Countries (OPEC), Russia and nine other non-OPEC producers cut oil production by 1.8 million bpd by the end of March 2018.

OPEC is due to discuss extending the agreement during its meeting in Vienna on Thursday.

[yota691]

 OPEC ministers and independent producers recommend a 9-month extension of production cuts

 

OPEC

Economy News Baghdad: A ministerial committee of OPEC members and independent producers, including Russia and Saudi Arabia, on Wednesday recommended that OPEC and its non-OPEC allies extend oil production cuts by nine months at a meeting on Thursday. "This is one of the recommendations," Kuwaiti Oil Minister Essam al-Marzouq told reporters when asked if the committee had agreed to extend the extension by nine months. Oil Minister Jabbar al-Luaibi said Wednesday that Iraq strongly supports the decisions of the Organization of the Petroleum Exporting Countries (OPEC), adding that the issue of extension of production cuts is very important during the OPEC ministerial meeting to be held at the headquarters of the Organization on Thursday. "Iraq as a founding member of OPEC will continue to abide by the decision to reduce oil production," Al-Allaibi said in a press statement. "The reduction period will be subject to discussion by ministers tomorrow to take appropriate action." "The country is satisfied with the current price levels and is very keen on the stability of the global oil market, pointing out that the market is currently moving towards stability, although not entirely."     Views 22   Date Added 29/11/2017

[SnowGlobe7]

I think this article is referring to the  deal of "everyone cuts oil production but Iraq "......when does that expire???

[justchecking123]

Looking good.

[10 YEARS LATER]

On 5/19/2017 at 8:58 AM, jeepguy said:

Would be very nice to see value, right before they go to Ramadan 

 

Shiite !!!  Clean forgot-when's the next Ramadan ? F*^K All gets done when that rolls around.

[yota691]

Al Mazrouei in OPEC meetings: We aim at stability of the market and investments

Oil countries extend cuts until the end of 2018

Source:

• Vienna-Agencies

Date:01 December 2017

 

ABU DHABI (Reuters) - Twenty-four OPEC oil and oil nations agreed on Monday to extend oil production cuts until the end of 2018 as they seek to clear up an oversupply of crude and hint that they could come out of the deal sooner if a sharp rise in prices occurs.

The current agreement for producers, under which supply is reduced by about 1.8 million barrels a day in a bid to boost prices, ends in March.

The organization also decided to set production ceilings for both Nigeria and Libya at 2017 levels without specifying figures. Both countries are excluded from production cuts due to disturbances and lower production than normal levels.

The 14-member OPEC met with 10 non-OPEC producers, led by Russia, to approve the extension of joint production cuts.

Russia, a major off-OPEC producer, is pushing for a first-time production cut with the organization, with a clear message on how to get out of the cuts so that the market does not turn into an impending supply shortfall or a sharp rise in prices or US rock oil companies increase production. Oil prices rose yesterday with the start of the Vienna meeting. Brent crude rose more than 1% yesterday, exceeding $ 64 a barrel.

The Minister of Energy and Industry, Suhail bin Mohammed Al Mazrouei, told reporters: "Today's meeting is supposed to be easier than its predecessor to improve the situation in the markets." The UAE is part of this alliance between producers both inside and outside the organization, It is always keen to support the stability of the market and has already supported all previous decisions of the Organization, which would have balanced the market, we are not targeting a specific price, but we target the stability of the market and investments. Regarding the market situation, Al Mazrouei said he believes the situation in the market today is better than before.

"The oil outlook for 2018 is very optimistic, we will not rush to press the trigger to respond to fluctuations in the production of rock oil," said Saudi Energy Minister Khalid al-Faleh. "It is too early to talk about getting out of the production cuts agreement for at least six months. He added that OPEC would assess progress during its next periodic meeting in June. "We need to continue coordinated action to restore balance to the oil market," Russian Energy Minister Alexander Novak said.

[yota691]

The Minister of Oil met with his Saudi counterpart and Prince Abdul Aziz bin Salman

By

 rami

 -

December 2, 2017

8

0

 

 

 

The Minister of Oil stressed the importance of strengthening bilateral relations and broadening the horizons of cooperation between Iraq and the brothers in Saudi Arabia, during a meeting with his Saudi counterpart Khaled Al-Faleh and Prince Abdul Aziz Bin Salman in the Austrian capital Vienna on the sidelines of OPEC meetings.
Oil Minister Jabbar Ali Al-Luaibi said the meeting included key axes aimed at boosting bilateral relations and unifying the views and positions of the Organization of Petroleum Exporting Countries in order to achieve common interests, stabilize the oil market and support oil prices. The balance of the global oil market.
He stressed that Iraq has played a pivotal role in previous meetings in order to achieve common goals and unify the visions among the producers.
Al-Allaibi revealed that the meeting with Al-Faleh and Prince Abdul Aziz discussed the importance of opening the Saudi consulate in the province of Basra and resuming commercial, industrial and investment activity between the two countries. He pointed out that Zubair district in the province of Basra was an important axis in trade between the two countries over the past decades, For families and tribes between brothers and this is what helps in building a solid base for the establishment of joint projects in all fields.

[10 YEARS LATER]

THE ONE INDICATOR OPEC MUST WATCH - from OilPrice.com 

 

https://oilprice.com/Energy/Crude-Oil/The-One-Indicator-OPEC-Must-Watch.html

[Butifldrm]

Putin makes an offer to Saudi Arabia

SECTION: ECONOMICDECEMBER 8, 2017 | 8:14 PM

Putin makes an offer to Saudi Arabia

 

Russian President Vladimir Putin on Friday offered Saudi Energy Minister Khalid Al-Falih cooperation in the field of liquefied natural gas (LNG).

"Buy our liquefied natural gas and save your oil," Putin told Faleh, who is involved in the launch of the Yamal LNG project.

"That's why I'm here."

"If we continue to work in the future in this way, we will move from competitors to partners, and from our joint work, we will have an inevitable outcome, And good for all. "

In turn, the Saudi minister welcomed cooperation with Russia, saying it would change the global energy market.

"Moscow and Riyadh are working in the oil field, and since oil and gas are closely linked, we hope to strengthen cooperation between Russia and Saudi Arabia as well as our companies from both countries," he said.

This comes after Putin issued an order to start the launch of the first tanker loaded with liquefied gas produced in the project "Yamal LNG" led by "Novatik" in the Arctic of Russia.

 

http://www.albaghdadiyanews.com/?p=83857

 

 

[DinarThug]

http://www.almaalomah.com/2017.....12/263455/

Oil jumps to its highest level since mid-2015

10:14 - 12/12/2017  

Brent crude jumped 1.5 percent on Tuesday to its highest level since mid-2015 after the closure of the North Sea pipeline, which in turn halted large supplies from a market already scarce due to OPEC-led production cuts.

Brent crude was $ 65.63 a barrel at 0556 GMT, up 94 cents, or 1.5 percent, from the previous close.

This is the first time Brent has exceeded $ 65 since June 2015.

West Texas Intermediate crude <LCOc1> was up $ 58.41 a barrel, up 42 cents, or 0.7 percent of the last settlement.

The pipeline, which transports Fortis, Britain's largest oil pipeline with a capacity of 450,000 bpd, was closed on Monday after cracks were detected. 

[tigergorzow]

DT Thanks,  DV,  What the heck is the GOI, CBI waiting on.  Almost $66 a barrel it is time to RV / RI the IQD.

 

GO HCL

 

GO RV / RI

[DinarThug]

 

http://www.almaalomah.com/2017.....12/263455/

Oil jumps to its highest level since mid-2015

10:14 - 12/12/2017  

 

Brent crude jumped 1.5 percent on Tuesday to its highest level since mid-2015 after the closure of the North Sea pipeline, which in turn halted large supplies from a market already scarce due to OPEC-led production cuts.

Brent crude was $ 65.63 a barrel at 0556 GMT, up 94 cents, or 1.5 percent, from the previous close.

This is the first time Brent has exceeded $ 65 since June 2015.

 

6 minutes ago, NEPatriotsFan1 said:

Didn't Uncle Adam say we needed to be over $60 a barrel for this thing to lift off? 

 

Houston - We Have Lift Off !  

 

     

[yota691]

Expectations of a new strategy out of the reduction of oil production

13/12/2017 12:00 am   Studied «OPEC» with independent producers  Baghdad / follow - up Shokran Fatlawi   at the time revealed the Minister of Energy of the UAE, Suhail bin Mohammed Al Mazroui, yesterday Monday that "OPEC" organization is studying with independent producers, how to get out of the cut crude oil production agreement, warned an expert Economist that any new strategy must take into account the acceptable price acceptable to all  parties.  "OPEC and independent producers plan to put an exit strategy out of production cuts in June," he told reporters in Abu Dhabi.  "It is too early to talk about the shape of this strategy before June, which is the date for the meeting of OPEC and Russia and other producers involved in the agreement," al-Mazroui, whose country heads OPEC, said in 2018. In the meantime, the economic expert in the name of Antoine that "the oil market is on its way to a gradual recovery and access to acceptable rates of producers and consumers, and that all oil-producing countries affected by the decline of prices during the past three years and lived stages of austerity embarrassed economic reality, and unreasonable and acceptable to think Neglecting the agreement to cut  oil production  . "  He pointed out that "any new strategy is to work to take into account the reality of prices within the acceptable rates for all parties."  "We will announce a strategy at the June meeting, but that does not mean that we will get out of the agreement in the same month, but only will put the exit strategy," Mazroui was quoted as saying by Reuters. Novak said: "Russia cut last November production of crude oil by 304 thousand barrels per day compared to the levels of October 2016 commitment to the agreement   (OPEC)."  The Organization of the Petroleum Exporting Countries (OPEC) and a number of independent oil producers agreed at the end of 2016 in Vienna to cut oil production by a total of 1.8 million barrels per day from the level of October 2016, of which 300 thousand barrels a day Russia's share of the reduction.  The agreement, reached in Vienna last year, contributed to rebalancing the oil market, with prices rising to between $ 50 and $ 60 a barrel after severe shocks to the market in 2014.  The agreement was concluded in the first half of 2017, Extended in May until the end of March 2018, and then all agreed to extend it also last Thursday until the end of  next year  . The agreement reached in Vienna last year rebalanced the oil market, with prices rising to between $ 50 and $ 60 a barrel after severe shocks to the market in   2014.  OPEC and independent producers, led by Russia, Have announced at their previous meeting extension of the agreement to reduce production until the end of 2018.

[yota691]

OPEC oil basket prices rise to 62.75 dollars

Readers

 

 

OPEC oil basket prices rise to 62.75 dollars

 

13-12-2017 06:46 PM

 

The Euphrates -

 

The price of OPEC's oil basket jumped after a series of slow and fluctuating rises during the week to record today's 62.75 dollars. 

"The price of OPEC basket oil reached 62.75 dollars per barrel, compared to 61.94 dollars the previous day," the Organization of the Petroleum Exporting Countries (OPEC) said in a statement. 

The OPEC basket is made up of desert mix (Algeria), Gerasol (Angola), Orient (Ecuador), Minas (Indonesia), Iran Heavy, Basra Light (Iraq), Kuwait Export (Kuwait) Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Marban (United Arab Emirates) and Miri (Venezuela).

[skeetdog]

On 12/12/2017 at 12:27 PM, DinarThug said:

 

http://www.almaalomah.com/2017.....12/263455/

Oil jumps to its highest level since mid-2015

10:14 - 12/12/2017  

 

Brent crude jumped 1.5 percent on Tuesday to its highest level since mid-2015 after the closure of the North Sea pipeline, which in turn halted large supplies from a market already scarce due to OPEC-led production cuts.

Brent crude was $ 65.63 a barrel at 0556 GMT, up 94 cents, or 1.5 percent, from the previous close.

This is the first time Brent has exceeded $ 65 since June 2015.

 

 

Houston - We Have Lift Off !

 

     

................

[skeetdog]

On 12/12/2017 at 12:11 PM, tigergorzow said:

DT Thanks,  DV,  What the heck is the GOI, CBI waiting on.  Almost $66 a barrel it is time to RV / RI the IQD.

 

GO HCL

 

GO RV / RI

.............

[yota691]

Oil is on the rise due to a drop in inventories but growing production is holding back

 

Oil field

Economy News Baghdad:   Oil markets rose on Thursday, supported by a drop in US crude inventories for the fourth week in a row, but the rise in output has cut price gains to stay well below the 2015 highs reached earlier this week.   At 0545 GMT, US crude futures rose 9 cents, or 0.2 percent, to $ 56.69 a barrel from the previous settlement.   Brent crude for the year was $ 62.79 a barrel, up 35 cents, or 0.6 percent, from a previous close.   US crude oil inventories fell 5.1 million barrels over the week ending Dec. 8 , continuing their fourth straight decline, hitting 442.99 million barrels, the lowest level since October 2015.   Despite the high price, Brent is well below the $ 65.83 a barrel peak of the 2015 peak touched earlier this week. Crude touched that level after the Fortis pipeline - which transfers large quantities of North Sea crude used in Brent pricing - was closed due to cracks.   The International Energy Agency (IEA) said it saw no immediate need to take steps such as releasing strategic stocks because markets were still receiving good supplies.       Views 12   Date Added 14/12/2017

[yota691]

OPEC's oil reserves are increasing

18/12/2017 12:00 am  Affect the price policy Baghdad / Emad Al-Amara The existence of proven oil reserves plays a certain role in the international crude prices because the policy of extracting oil in each country is affected by the size of the recoverable oil reserves over a period of time - according to an academic economist, under the growing international demand for energy on a yearly basis, Of the total conventional energy consumed internationally during the last decades of the last century. "The proven oil reserves of the last three decades are increasing," said Abdul Sattar Abdul Jabbar Musa, an economist at Al-Sabah. "The increase in international consumption, with the discovery of alternative sources of energy and competition in the cost, International consumption of energy ", but" this situation will not continue in this century. " Oil reserves and continued Moses "Despite the scientific developments that are expected to determine the final size of the total oil reserves in the ground, but the oil reserves of the countries outside the Organization of " OPEC "will decline , and will increase the importance of reserves of OECD countries, especially countries in the Middle East , which represented all of the " Kingdom Saudi Arabia, Iraq, the United Arab Emirates, Kuwait and  Iran. " According to Moussa, "the oil reserve is one of the factors affecting the prices of international crude oil, at the regional level, the amount extracted indicate the size of proven reserves, and therefore the policy of extraction of crude in each country affected by the size of oil reserves recoverable within a period of time. Extraction costs  The recoverable oil reserve means that the price of crude oil in the market covers the cost of extraction. There are non-economic oil reserves that are not included in the oil reserves within a certain period of time and at a certain price. Thus, the production becomes a function of both the size of the proven oil reserve and the price. . "On the international level, the changes in the size of the proven international oil reserves affect the changes in the overall supply of crude oil in the international market." He explained that "the oil reserve in general means the amount of oil wealth buried under the ground and scientifically discovered and estimated quantities in the light of information available from operations in the area subject exploitation or research, with the possibility of extraction of this wealth inherent in the ground with the means and equipment available.  The quantities of oil and pointed out that "oil reserves classified - as defined by the American Petroleum Institute - as crude oil quantities of engineering and geological data available is not possible doubt refer to the possibility to extract the future of the field, assuming the continuation of the technological and economic conditions  present."  "The probable reserve is the amounts of crude oil known and scientifically discovered but not estimated accurately and final quantities and types of crude oil," pointing out that "the proven oil reserve is influential in relation to the overall international offer, but that reserve is subject to continuous changes, And is associated with the opposite relationship with the volume of production, the size of oil reserves decreases as much as is extracted from crude oil annually.  New layers  and between that " the appreciation of the process of oil wells take place as a result of increased geological and engineering information more accurately, and that technological developments may add new oil reserves , through access to new layers or by reducing the costs of extraction." He concluded by saying that "high oil prices make some potential reserves proven and enter within the reserves can be extracted economically after that was not possible, and vice versa, the decline in oil prices make reserves with marginal extraction costs that exceed the new prices emerge from the accounts of the proven reserve and thus decrease the volume  Total international reserve

[yota691]

First Published: 2017-12-21

OPEC is considering several options including ending the cut-off deal

The General Secretariat of the Organization is working on plans for a strategy of exit from the agreement with the attainment of oil prices higher than the minimum was not hoped.

Middle East Online

Going out is certain if the supply is overshadowed LONDON (Reuters) - The Organization of the Petroleum Exporting Countries (OPEC) has begun work on plans for an exit strategy from its agreement to cut oil production with two independent producers, a sign that the end of the deal looms for producers at least in theory. Opec, Russia and other producers agreed on Nov. 30 to extend the cut-off agreement until the end of 2018 to absorb the oil market's stigma, but the market is increasingly interested in how producers exit the deal if it is dented. The sources said the OPEC Secretariat in Vienna was working on a plan with multiple options, and it was too early to say what the plan would look like. "It's a continuity strategy and not an exit," one said. Oil has risen this year and is trading near $ 64 a barrel, nearing its highest level since 2015 with support from OPEC-led efforts. This is higher than the $ 60 minimum, which sources say Opec wants to see in 2018. OPEC ministers say publicly it is too early to talk about an exit strategy, but the group said producers wanted to continue working together after the end of 2018, including supply management. While oil prices have risen to levels favored by Opec, the goal set out in the cut-off agreement is to cut stocks in advanced economies built after the supply crunch in 2014 showed an average of five years. The Organization of Petroleum Exporting Countries (OPEC) has made progress and said in October that stockpiles in OECD countries were 137 million barrels higher than the five-year average. Since the cut in production in January, stocks of over-five-year stocks have fallen by 200 million barrels, the country's oil minister said on Wednesday. Discussions on exit from the agreement may be needed before December 2018, as OPEC expects the market to regain its balance by late next year. The Organization and its allies are holding their next full ministerial meeting in June, which will be an opportunity to review the progress made. Russia, the biggest contributor to non-Opec production cuts, has proposed reviewing the deal in June. However, Russia's biggest crude producer Rosneft said this week the cut could continue in 2019.