Last week was a tumultuous week for traders in oil markets as lingering doubts over the effectiveness that a production cut led by the nations of the Organization of Petroleum Exporting Countries (OPEC) was achieving the desired result of reducing global oil supply. The market has been saturated for over two years and some producers… Keep reading →
Oil Prices
Persistently High Supplies of Oil Leads to Market Woes
By Michael McDonaldSign up and get Breaking Energy news in your inbox.
We will never sell or share your information without your consent. See our privacy policy.Keeping Oil Down: Weak Demand for Gas Combines with Libyan Pipelines
By Michael McDonaldOil prices fell again this week as lower than expected demand for gasoline combined with two major oil fields in Libya resuming production to further depress crude prices. The combination of lower than expected demand and increased production stoked concerns that despite the efforts of major oil producers the global inventory surplus would remain unaffected.… Keep reading →
Broken Contract Brings BP and Monroe Energy to Court
By Michael McDonaldBritish Petroleum one of the largest energy companies in the world has accused Monroe Energy of wrongfully terminating a crude supply contract in 2016. According to the federal court filings by the oil company BP claims Monroe’s actions cost BP at least $59 million in damages. In a lawsuit filed in the U.S. District Court… Keep reading →
Breakeven oil prices have fallen below $40 per barrel as of late – a trend that some analysts believe on applies to shale companies, such as Devon Energy and EOG Resources. However, new data shows that even the big players, the major oil companies, have reached the same breakeven levels. These shale companies (also known… Keep reading →
Is Oil About to Stabilize?
By Michael VinciThe International Energy Agency (IEA) has released a statement that they believe the oil market is soon approaching equilibrium, mostly due to the success of the OPEC production deal. The agency’s data shows that demand is growing at a constant and regular pace in the oil market. “The numbers are there to support it,” according… Keep reading →
The decision by the Trump Administration to launch missile strikes against Syria may affect oil markets. The Middle Eastern country broke international law established by the United Nations and the Geneva Conventions when it decided to use chemical weapons on rebels in the country – a banned form of artillery. The true outcome hinges on… Keep reading →
The Permian Basin has been one of the largest producers of oil in the United States since December 2016. Spurred by the profit incentives of high oil prices due to OPEC supply cutbacks, these Western Texas rigs are some of the fastest growing in the country, and as a result, analysts are issuing recommendations to… Keep reading →
OPEC Cutback Extension Called into Question
By Michael VinciThe agreement between OPEC and non-OPEC countries around the world to limit supplies has been called into review by a joint committee of ministers from the oil producers. Prior statements from these countries has hinted at the possibility of an extension, always citing the high levels of conformity between the members of the pact. Previously,… Keep reading →
Repsol, a Spanish energy company with drilling operations in Alaska, claims to have found an oil reserve containing 1.2 billion barrels of oil. The find in Alaska’s North Slope is the largest onshore discover in the United States in the last 30 years.
Danielle Izzo, Breaking Energy Staff
For the past two years oil prices have suffered because of excess supply. To respond to this slump, OPEC, in conjunction with other oil producing countries, came to an agreement that would ensure a reduction in the production of crude oil. As of January 2017, the agreement has gone into effect with strong support from participating countries.
According to the International Energy Agency reported that 90% of the countries in accord with the agreement have maintained support and participation. The price of the OPEC Reference Basket rose from $25 per barrel in 2016, to $52.40 per barrel in 2017 largely thanks to OPEC’s supply cut.
