woensdag 21 juni 2017

Oil Shrugs As Iran Hints At More OPEC Cuts, Admits Surprise At US Shale Production

If at first you don't succeed, try again and if that fails, start jawboning about more production cuts again. Iranian Oil Minister Bijan Namdar Zanganeh says on state radio that "we are consulting with OPEC member states to have them prepared to make a decision to make further cuts [to production]." As is clear from the chart below the reaction is anything but exuberant...

Zanganeh went to say;
*“The US oil production increase was unpredictable and this increase is more than what OPEC members had foreseen”
*“OPEC should wait a while and see how the market forms”
*"But making a decision in this organization is very difficult because any decision will mean an output cut by the members."
Somehow they saw US shale increasing production amid higher prices as "unpredictable"? Perhaps that's why the market is unimpressed....