Mexican Media Brands
OPEC Moves toward Extending Production Quotas on Oil
Saudi Arabia’s energy ministry says the Organization of the Petroleum Exporting Countries is likely to continue the cartel’s oil production quota into the second half of 2017 when the cartel meets next month.
#economics
Share
Saudi Arabia’s energy ministry says the Organization of the Petroleum Exporting Countries is likely to continue the cartel’s oil production quota into the second half of 2017 when the cartel meets next month.
Last November OPEC agreed to begin reducing its combined petroleum production by 1.2 million barrels per day, or 3%, in January. The group also coaxed several other producers, including Russia, to pledge a combined 558,000 pbd in additional cuts.
Minister Khalid al-Falih predicts the agreements will be extended for 3-6 months, Bloomberg News reports. He says OPEC has reached a consensus but has not yet finalized an agreement.
The quotas are aimed at shrinking record-high reserves of stored petroleum, thereby giving OPEC more clout in managing oil prices. Current crude prices are around $53 per barrel compared with about $100 between 2011 and 2014.
Compliance to the quotas has been uneven, and some participant began lowering their output only a few weeks ago. Falih concedes that the OPEC cutbacks haven not yet sufficiently drawn down inventories of stored oil.
RELATED CONTENT
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.