Energy Report: OPEC And Beyond

OPEC plus may be raising production, but "Big Oil" is still cutting back. OPEC plus Russia finally agreed to a 500,000 barrel per day production increase, lowering its cut from 7.7 million barrels per day to 7.2 million barrels per day beginning in January in what Saudi Energy Minister Abdulaziz bin Salman said was a very excruciating, very tiring, very frustrating, OPEC Plus meeting. This comes as Chevron Corp. joined other 'big oil" companies in cutting capital spending and jobs. We may get more oil from OPEC, but we assuredly are getting less oil from U.S. energy companies. That may cheer some in government that feel guilty about American success. Still, they can feel better about themselves if they rejoin the Paris Climate Accord and allow China to pollute at our expense.

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Yet if you like soap operas, there is none better than "As the Cartel Turns”. It had drama backstabbing, pouting, and redemption. It sort of went like this. Saudi Arabia leaves its post as lead, leaving Russia to chair the meeting on their own. It seems that some members, mainly the UAE, suggested to Saudi Arabia that they were tired of them dictating policy to the rest of the cartel, and the Saudis basically said, Ok, you do it. The Saudi oil minister Prince Abdulaziz bin Salman Oil minister stepped down. Still, the UEA did not step up, leaving it to Russian Deputy Prime Minister Alexander Novak to chair the group independently. So Russia is now leading OPEC at least for a day.

As Marketwatch reported, "OPEC+ announced that it reached an agreement to pare current production cuts of 7.7 million barrels per day to 7.2 million barrels per day beginning in January. That essentially raises their collective production by 500,000 barrels a day. The group said it would hold monthly OPEC and non-OPEC ministerial meetings starting in January to "assess market conditions and decide on further production adjustments for the following month, with further monthly adjustments being no more than 0.5 mb/d." 

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