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Last quote about OPEC

Tamas Varga
The EIA data suggest the U.S. oil market is becoming more balanced, with crude inventories falling. But the big jump in production was the focus.feedback
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Aug 17 2017
Multiple people spoke about OPEC in the news. We gather all their quotes on this page, an easy way to see all views about this topic at a glance. To go deeper, all quotes are redirected to the article from which they come. John Kilduff is the person who had the greatest number of quotes. The most recent one of them is: “People are taking a hard look at what the balance is. We had seen in the past few weeks that demand growth was robust, and this turned that on its head.”.
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All quotes about OPEC

Gene McGillian - Tradition Energy

Five weeks of crude draws is lending some credence to the idea that the Opec cut is beginning to impact the market. The market needs continuing signs of improvement in the inventory picture to really drive the prices higher.feedback

Keith R. Phillips

I think OPEC had more success in stabilizing prices than people thought at the end of last year. They have done pretty well in holding back production, but that means production in the U.S. can now be pretty significant in terms of how it affects oil prices.feedback

Jeffrey Halley

The coup de grace came from the American Petroleum Institute's (API) Crude Inventory release late in the New York session ... bringing an end to the last few weeks' trend of falling supplies in storage. Traders stampeded for the door to lock in profits from the last eight days' bull-run.feedback

John Driscoll

It's still sheikhs versus shale. I would put an average price for [the third quarter] at just under $50. In the past year it's like Brent was following the U.S. speed limit: 55 max.feedback

Giovanni Staunovo - UBS

While a single data point is not a trend, it may confirm that the low prices seen in recent weeks are not sustainable for U.S. shale producers.feedback

Johannes Benigni - JBC Energy

We see Brent prices sustained at or slightly above $50 per barrel over the next few months. However, this hinges on compliance not only in terms of reported production figures but also in terms of actual arrivals at consumer hubs ... otherwise the credibility of the deal and outright oil prices will suffer.feedback

Harry Tchilinguirian - BNP Paribas

Since oil inventories are the barometer by which the oil market judges OPEC's success in rebalancing the market, a decline in stocks will be positive for market sentiment and the oil price, which on a WTI basis, stands a good chance to once again trade above $50.feedback

Daniel Yergin

The price range seems to be shifted downwards because of greater efficiencies, new supply and demand not being strong enough to pick up all that extra supply.feedback

John Driscoll

Any perception that there will be 'leakage' will take air out of the balloon.feedback

Ole Hansen - Saxo Bank

U.S. producers are not prepared or able to keep up production at any price. These developments have left OPEC with a window of opportunity. If successful, the price of Brent crude oil is likely to rally back towards $55 during the coming months before renewed weakness sets in as the focus turns to 2018 and the potential risk of additional barrels hitting the market if OPEC and Russia fail to extend the production cut deal beyond Q1 2018.feedback

Brian Gilvary - BP

Global demand is looking pretty strong, and prices will firm around the levels seen today.feedback

Michael Tran - RBC Capital Markets

So many tankers out there are looking for work it would not be surprising for somebody to get a sweetheart deal to take it to Asia.feedback

Harry Tchilinguirian - BNP Paribas

The simple truth is that OPEC and Russia have to contend with the fact that there is output growth elsewhere diluting their efforts at reducing supply. Nigeria, Libya and U.S. shale oil feature prominently as an offset to OPEC's efforts.feedback

Abhishek Kumar - Interfax

OPEC's compliance is expected to remain under pressure over the coming months as scepticism grows over the pace of market rebalancing, despite actions taken by the cartel and some non-OPEC countries.feedback

Giorgos Beleris - Thomson Reuters

OPEC was swift to reaffirm its commitment in the production deal after Ecuador's announcement. The group vowed to tackle low compliance among its members, although it remains unclear how. Saudi Arabia continues to lift most of the weight of the cuts.feedback

Carsten Fritsch - Commerzbank

The longer prices remain low, the greater the risk is that some OPEC countries will no longer comply with the production cuts as strictly as they have been doing so far.feedback

Nicolas Maduro

We have stood strong during this global campaign and we have stood strong when dealing with the terrorist and criminal violence and here we are, a country at peace.feedback

Ignasius Jonan

This is all part of an effort to have a more open dialogue with our business partners.feedback

Ignasius Jonan

There is no option. It they don't, it's OK, but they cannot export.feedback

Ignasius Jonan

We would have to have a concession for not following cuts from time to time.feedback

Suhail bin Mohammed al-Mazroui

We are optimistic about ... compliance from OPEC and non-OPEC countries and we look forward to ... gradual improvements toward market balance. Saudi Arabia and Gulf states (have) an excellent track record of compliance to OPEC decisions and together with Iraq carry most of the cut.feedback

Alexander Novak

I think that these countries should join other responsible oil producers and contribute to the market stabilisation initiative, as they reach a stable level of output. We believe that once oil output in Libya and Nigeria stabilises, there will be less uncertainty on the market as to their future moves.feedback

Mouhammed Choukeir

Oil is behaving in a very atypical way if you like and that's largely because people are not convinced that OPEC is going to be able to comply and shale producers are going to continue producing.feedback

Mouhammed Choukeir

Oil price has a life of its own…. You can see that since the beginning of the year clearly OPEC has tried its best to keep that oil price going higher and higher (but) it has failed to do so for a number of reasons.feedback

Mike van Dulken - Accendo Markets

It may provide some clarity on the outlook for further rate hikes in light of recent poor inflation data, and investors are eager to know more about the timing of its balance sheet unwind, however, Yellen may again only offer crumbs with which we can ponder for the rest of the summer.feedback

Khalid al-Falih

We must acknowledge that the market has turned bearish with several key factors driving these sentiments. Some countries continue to lag [on compliance with cuts] which is a concern we must address head on. Exports have now become the key matrix to financial markets and we need to find a way to reconcile credible exports data with production data.feedback

Victor Shum - IHS

Various producers will try to comply, but I think compliance will slip versus what has happened in the first half of this year. It seems like OPEC really faces a mission impossible at this time, which is to try to tighten oil markets and to sustain oil prices.feedback

Robert McNally

I think the meeting revealed that there are some tensions starting to grow within the group.feedback

John Kilduff - Again Capital

I think we're set up for a 'buy the rumor, sell the news' type of market. The only surprise to the market would be if the Saudis stood up and cut more. But there doesn't appear to be much appetite for further cuts.feedback

Mohammad Barkindo - OPEC

We are pretty sure that the rebalancing process may be going at a slower pace than earlier projected, but it is on course. It is bound to accelerate in the second half.feedback

Kaname Gokon - Okato Shoji

The committee may issue a statement on cooperation in production cuts, but output cuts by Libya and Nigeria would be next to impossible considering Libya was just re-emerging from the civil war, for example.feedback

Frank Schallenberger - Landesbank Baden-Wuerttemberg

I don't really think the meeting will result in further output cuts. And Libya and Nigeria won't bee too enthusiastic to cap their production.feedback

Sukrit Vijayakar

Market participants seem to be convinced that the supply glut is here to stay and that the market is unlikely to rebalance anytime soon.feedback

John Kilduff - Again Capital

We're keying on everything ahead of the OPEC meeting; they can't add even a barrel right now.feedback

Francisco Blanch - Bank of America Merrill Lynch

They cannot get out of this one very easily. It's either fast death, slow death or death by a thousand cuts. If they decide to break up the deal and increase production, it's a fast death. If they keep the deal as it is, it's a slow death. If they cut production and give away market share to U.S. shale, it's a death by a thousand cuts.feedback

Francisco Blanch - Bank of America Merrill Lynch

There's been talk of a Saudi cut being thrown around. … I don't think it's very likely right now.feedback

Francisco Blanch - Bank of America Merrill Lynch

Clearly, OPEC has a lot of cracks. The cartel is certainly under a fair amount of pressure from members that feel they shouldn't be cutting production here. I think the meeting is going to be more routine than anything else. There will be some recommendations.feedback

Francisco Blanch - Bank of America Merrill Lynch

Ecuador wants to pull out, and then Iraq has been talking about increasing output by a half million barrels.feedback

Suhail bin Mohammed al-Mazroui

We have seen healthy demand and a flattening of rig counts in the United States. This is the beginning of the third quarter and demand picks up in the third quarter and I hope the agreement will have a significant impact in the third and fourth quarter. The UAE is committed to its cut. We have seen some increase in production in some of the countries that were not part of the agreement because of their special stance.feedback

John Kilduff - Again Capital

The report was squarely supportive with the across-the-board inventory declines.feedback

Daniel Gerber

OPEC-14 supply is expected to exceed 33 million bpd in July which represents an increase of 145,000 bpd over June, driven by higher supply in Saudi Arabia, UAE and Nigeria. July volumes represent an increase of more than 600,000 bpd over the first-half 2017 average.feedback

Essam al-Marzouq

We are in the first two weeks of the extension period. It is too early to say now what I will do in November.feedback

Elvira Nabiullina

Of course, I welcome all the normalization of monetary policy. I think monetary policy should be normal. We try to normalise our policy, but it's the opposite direction – we are now in the easing cycle – but other countries are in a different way.feedback

Fawad Razaqzada - Forex.com

Over the past 15 weeks, U.S. oil inventories have fallen ... 13 times, and in most cases, the falls were more pronounced than expected. Yet, U.S. crude oil inventories still remain near the upper half of the average for this time of the year.feedback

Andy Lipow - Lipow Oil Associates

The report was more good news for the oil industry as inventories declined across the board for crude and products by over 10 million barrels. Gasoline inventories are now nearly 5 per cent lower than this time last year. That is a reflection of good consumer demand.feedback

Tamar Essner - Corporate Solutions

Today's story was that the Saudis are merely considering further export cuts, but this hasn't materialized yet and what we do have hard data on shows that Nigerian and Libyan exports are up, in defiance of expectations.feedback

Mohammad Syed

The investment themes we set out at the beginning of the year have performed well, and we continue to see potential for growth in these areas. In the meantime we've added emerging market bonds to our portfolios and funds, to benefit from strengthening economies in the developing world. As ever there are risks on the horizon but uncertain times bring new opportunities into view.feedback

Abhishek Kumar - Interfax

U.S. crude output has maintained its upward trajectory despite oil prices remaining below $50 a barrel. This "poses serious questions on the effectiveness of the output cut deal agreed upon by OPEC and some non-OPEC countries.feedback

Carlos Perez

There's a need for funds for the fiscal treasury, hence we've taken the decision to gradually increase output. What Ecuador does or doesn't do has no major impact on OPEC output.feedback

Joseph McMonigle

Ecuador's exit from the Opec deal is like a rounding error due to its low production cut target. But Ecuador's exit combined with Kazakhstan's intended 'soft exit' from the deal undermine Opec market narrative and could potentially prompt others in the deal to look for the doors.feedback

Joseph McMonigle

Crude draws in the US now are critical to Opec's plan and can't come soon enough with production increases in Libya and continued expansion in US shale. Ecuador's decision just increases the pressure on Opec.feedback

Carlos Perez

Unfortunately, we are currently at a reduction of around 16,000 barrels per day. We are not meeting the quota imposed on us because of the obvious needs the country has. We need funds for the fiscal treasury and for that reason we've taken the decision to gradually increase production, although not to the country's full potential, because of OPEC's output restrictions and the ceiling that we have as a result. There is an unwritten agreement with OPEC to have some kind of flexibility regarding Ecuador's needs.feedback

Stacey Gilbert - Susquehanna

It really has to do with oil; once you get oil above $50 [per barrel], it's obviously a very different story. What I would say from the options perspective on the oil market, $40 to $50 seems to be the range we've obviously seen it trade there pretty tightly. The options seem to suggest that it will continue to trade in that type of range, which means that these stocks probably just continue to kind of hover around these lows where they are.feedback

Stacey Gilbert - Susquehanna

I think it's the contrarian way to go, so I actually like travelling a bit in XLE calls here. Technically, if there is any sort of rally in oil, I think that these names really have the potential to turn and really rip higher in a lot of ways. You could miss that rally.feedback

Elvira Nabiullina

We observed that the reaction of oil markets to this prolongation of the OPEC agreement is a bit different to what markets expected, and the oil price is a bit lower than many expected as a result of this OPEC agreement. We see many medium-term factors that are absolutely unclear about oil markets. That's why we think we should be conservative in our forecast of oil markets. We think these factors are so changeable that oil markets could stay quite volatile.feedback

Neil Beveridge

We are definitely seeing robust demand growth (in China), driven by low oil prices and growth in SUVs. The very strong import growth is partly being helped by declining domestic production.feedback

Erik Wemple

In addition to covering Russia, Russia, Russia and President Trump, CNN - an organization of nearly 4, 000 “news professionals” - finds the organizational wherewithal to provide some topical variety on CNN.com. “Look out, OPEC! U.S. to become top 10 oil exporter by 2020, ” says the headline on a Tuesday story by Ivana Kottasová on CNN.com. Based on data from PIRA Energy Group, the story says that exports of U.S. crude will increase fourfold from 2016 to 2020.feedback

Emmanuel Ibe Kachikwu - OPEC

Hopefully, in the next two to three months we can see how predictable the production return has been and then can say we feel stabilized and need to make the corresponding cuts.feedback

Mohammad Barkindo - OPEC

We remain very optimistic ... (about) helping the market to rebalance itself. We are fully satisfied that member countries are maintaining a very high level of conformity.feedback

Lukman Otunuga

While further upside could be expected in the short term amid the speculations of a cut in U.S production, gains may be limited by the firm oversupply dynamics of the markets.feedback

Scott Shelton - Icap

That tells you demand globally is a lot stronger than people thought it was going to be and that is having a net positive effect on heating and gasoline prices.feedback

Michael Cohen

(U.S. producers) were able to add more volume in 2016 than they were in 2012 at half the price. So even though we expect some cost inflation over the course of this coming year, it won't be enough to limit them and to handicap them just because of the productivity gains and efficiency gains that they've been showing.feedback

Daniel Yergin

We still see U.S. shale continuing to grow and being an important part of the supply but I think this year you've got this really powerful rebound and it's baked in for the rest of the year.feedback

Alexander Novak

When the first agreement was signed for six months, people immediately started asking me, what's going to happen in six months? And then as soon as we extended it for another nine months everyone is interested in what will happen in nine months. It's an endless and eternal question.feedback

Alexander Novak

If necessary, we can extend the agreement. If necessary, we can increase the amounts that need to be reduced or on the contrary, we can move to reduce them.feedback

Lorenzo Simonelli - GE Oil & Gas

When you look at the energy requirements, the increasing population, we feel there's going to be a necessity from an oil and gas perspective as we go forward. LNG (Liquefied natural gas) continues to grow at 3 to 4 percent, oil continues to grow at about 1 percent, you've got natural gas growing at 2 percent, as you look long term that supply demand balance is going to be there. What we've got to focus on is making sure that we drive productivity through that value chain to let the investments go forward.feedback

Lorenzo Simonelli - GE Oil & Gas

Clearly we look at the price of oil, At the same time, it's only one of the data points we look at. What we're focused on right now is really driving the costs of synergy and revenue synergies.feedback

Lorenzo Simonelli - GE Oil & Gas

I think right now there's still a sense of optimism with regards to the direction of energy, there's optimism with regards to the aspect of tax and if we can get some of these reforms through, you'll actually see the economy continue to grow.feedback

Lorenzo Simonelli - GE Oil & Gas

We're still early on in the actual presidency. You've got a number of initiatives that have been started, you mentioned the energy policy, you've got tax reform, health care, we've got to see how those come through over the course of the next few months.feedback

Loh Chin Hua

We are watching carefully … As far as we are concerned, the bulk of it is done.feedback

Matt Smith

The stream of relentless supply continues. We've seen exports last month from OPEC much stronger than they were in April and May, seemingly indifferent to the OPEC production cut deal.feedback

Daniel Yergin

It looked like the world was making progress toward rebalancing, but (these) two things have really pushed out rebalancing.feedback

Herman Wang - S&P Global

There are plausible scenarios where you could see, perhaps not $120 a barrel, but an elevated oil price, say $70 to $80 on some of these geopolitical and some of the supply concerns. Venezuela certainly is a mess right now.feedback

Neil Dwane - Allianz Global Investors

Venezuela's 2 million barrels of oil a day could literally go any day. Mexico looks poor. Azerbaijan's in trouble. China's own production is collapsing rapidly.feedback

Spencer Welch

This plus the U.S. effect is neutralizing the impact of the supply cuts and keeping a firm lid on crude prices. This is a worry for the supply cutting coalition.feedback

Neil Dwane - Allianz Global Investors

One only has to have one mistake and the only thing you'll be talking about all morning is oil at $120.feedback

Spencer Welch

Libya and Nigeria were given a free pass when the deal started in Jan 2017 because civil unrest meant their production was significantly down on what they have historically achieved. Both were also given a free pass for the roll-over of the deal through to end 1Q 2018, it was always a big risk that either or both would find a way of increasing production.feedback

Ole Hansen - Saxo Bank

We're seeing some head scratching today. Following a sharp rally, which was mostly driven by short-covering, the failure of Brent to break back above US$50 earlier in the week has once again given sellers appetite for sending it lower.feedback

Francisco Blanch - Bank of America Merrill Lynch

If they hedge production at the current price point, and now calendar prices for next year, are below $50, they are locking in a loss.feedback

Francisco Blanch - Bank of America Merrill Lynch

The bottom line is if oil falls below $40 per barrel on average, which is why I don't see a lot of downside, we start to lose shale. In the context of OPEC not waging a price war, we need prices high enough to encourage some amount of shale drilling. If prices are $55, we think shale supply grows by 1.1 million barrels a day.feedback

Francisco Blanch - Bank of America Merrill Lynch

I don't see a lot of downside below $40/$45 range. Maybe we get a little bit of a dip below but I just think the market is pretty oversupplied. Inventories are finally declining but the real issue is we need to have forward prices low enough to discourage shale. We need to see a slowdown in the fracking industry, and we just added 12 rigs which doesn't help at all.feedback

Daniel Yergin

We are seeing that people can operate in the $45 range when people thought it was going to be in the $50s, because people keep figuring out how to push down the cost.feedback

Daniel Yergin

It shows you there is so much supply, the focus is on the inventories, the focus is on how U.S. production keeps coming up, so something that in other circumstances would've sent shudders to the oil market doesn't happen.feedback

Daniel Yergin

Forget that world of $100 – that was not the new normal; that was an aberration.feedback

Sukrit Vijayakar

Prices have managed to recover ever so slightly after API released its inventory data which showed U.S. crude inventories falling.feedback

Ole Hansen - Saxo Bank

OPEC's ability to maintain exports should be tempered by the need to keep more oil at home to meet increased domestic demand during the peak summer months.feedback

Carsten Fritsch - Commerzbank

The air is getting thin for oil prices. The price increase just ran out of steam, which is not very surprising, given the news flow of rising OPEC supplies.feedback

Kathy Bostjancic

The minutes from the June 13-14 FOMC meeting underscore that the start of the balance sheet reduction is on course for this year. On the interest rate front, we believe rising concerns that the slowdown in the inflation rate could be long-lasting will lead policymakers to forgo additional rate hikes this year and to only raise rates twice (total 50 basis points) in 2018.feedback

Yoshihiro Okumura

Investors were picking up cyclical stocks, particularly automakers as they have laggard behind the rises of the overall market.feedback

Phil Smith

The Italian services economy has seen its strongest quarterly performance for almost ten years in the three months to June, despite the upturn losing some momentum in the past couple of months. The latest survey data also confirmed the absence of any serious inflationary pressures, with prices charged for goods and services rising at the slowest rate for four months in June.feedback

Andrew Harker - Markit

The Spanish service sector ended the first half of 2017 with a flourish, with PMI data for June signalling the strongest increases in output and new orders for almost two years and employment growth picking up as well. Firms also took advantage of strong demand conditions to raise their selling prices and provide a welcome boost to profit margins. Companies see little reason to doubt the sustainability of the upturn at present, reflected in our business confidence data remaining around the highest seen over the past two years.feedback

Andrew Harker - Markit

Combining this release with Monday's manufacturing PMI, the data suggest output rose more quickly in the second quarter of the year than in the first, boding well for the Q2 GDP outturn.feedback

Carsten Fritsch - Commerzbank

It's all about market sentiment. These ... (temporary) factors outweigh the sharp increase in OPEC oil production in June ... and the continued increase in Libyan and Nigerian output, at least at the moment.feedback

Jacques Rousseau - Clearview

What that means is this is OPEC's big chance. As long as they can keep oil supply relatively constant, this higher demand is going to draw down inventories.feedback

Helima Croft - BC Capital

We thought this market was actually a bit oversold. We think the fundamentals are better than where the price was earlier.feedback

Stephen Schork

Given that all these bearish headlines have been priced into the market, if you're going to have any sort of risk of a large outside move, I think it would be to the upside at this point.feedback

Dennis Gartman

...It WILL, the effects of which are obviously long term very, very bearish.feedback

William Baruch - iiTrader

I am long-term bearish oil, but I'm staying out of the way until $47 to $48 [per barrel]. At that point, we could see a good sell opportunity.feedback

David Thompson

Typically June/July represents the seasonal peak in refinery demand for crude. It gets tougher to use up all that crude as refinery utilization starts to ease off as we move past the peak of summer driving season.feedback

Carsten Fritsch - Commerzbank

The rise in OPEC production will further delay the point at which balance is restored on the oil market.feedback

David Fyfe - International Energy Agency

That arithmetic ought to persuade Opec and Russia of the value of sticking with it, maybe cutting sufficient extra barrels to offset Libya and Nigeria increases and reaping the reward of higher overall 2017 revenues. But the politics of apportioning further cuts will get messy.feedback

David Fyfe - International Energy Agency

I think the extent to which Saudi Arabia bled revenue during 2014-2016 forced them back to the Opec table before the job of really turning the screw on US shale and other non-Opec supply was completed. However, the production deal has at least staunched the cash hemorrhage for now.feedback

Tim Dove - Pioneer

I personally believe (the oil price) where we are right now is not sustainable. It comes in the form of two words: Saudi Arabia. They cannot have a scenario, which is $43 or $44 (per barrel) oil, and sustain their national budgets.feedback

Tim Dove - Pioneer

We're not going to not drill because this very well may be the time where the well costs are as low as they're ever going to be. We can pare away and still be profitable even in a $45 (per barrel) environment. We may just dial back at the margin in that scenario and not be a significant over-spender.feedback

Tamar Essner - Corporate Solutions

We are not yet at the highest level of short positions on record, but nearing it, which means we could start to move higher in the back half of the year.feedback

Andrew Lebow

I think in the market, over the last four weeks or so, every news item has been uniformly bearish, even the technical situation has been bearish and a lot of the entrenched bulls were really throwing in the towel. The downside momentum was clear and today it just got to a level where it's been arrested for the time being.feedback

Matt Smith

We're seeing a fairly widespread rebound in the June numbers. That's been the trend of OPEC loadings all year: move to compliance and move out of it from an export perspective.feedback

Matt Smith

None of those three are showing signs of a materially tightening market. I think the global market is showing signs of strain simply because you've got floating storage off Singapore and Malaysia close to the highest levels of the year. They're not dropping. In fact, they're tipping higher.feedback

John Kilduff - Again Capital

What the market is in the process of doing is trying to draw out a response from the industry. Until they get it, they're going to keep grinding it lower and lower.feedback

Tom Kloza - Oil Price Information Service

I don't want to call [Tuesday's price rise] a dead cat bounce. But it's a nominal bounce. It's certainly nothing that proves that the bear market is over. I think it's the notion that the next $7 will be a move up as opposed to a move down.feedback

Patrick DeHaan - GasBuddy Organization

So many Americans love to hold onto that myth that gas prices go up for the holiday, and yet, here we are. Gas prices down 15 cents a gallon in the last few weeks.feedback

John Kilduff - Again Capital

We've fallen a long way. If you're initiating a short position now, you missed a lot of the ride down.feedback

John Kilduff - Again Capital

The hedge fund community has clearly lost their faith in OPEC and the Saudis to be able to achieve balance, which was a much ballyhooed position over the last couple of months.feedback

Phillip Streible - R.J. O'Brien & Associates

The drawdown we'll expect is just right around 1 million barrels for crude oil, so data coming out of course is going to be quite bearish for oil going forward.feedback

Miswin Mahesh - Barclays

(The falling price) reflects ample supplies of light sweet crude in the Atlantic. Higher output from Libya, Nigeria; and offers of North Sea crude from floating storage are looming on the market.feedback

Nannette Hechler-Fayd

Since the coming up of shale oil in the U.S., (oil) has been caught up in this broad range between $40 and $60 and we are again testing this lower bound. Whether one likes it or not, there are a number of shale producers that are really not going to look very profitable at this moment. So production is likely at this point to react a bit more than what we have all been expecting in the last half year, Also the inventories are starting to be drawn.feedback

James Williams

It's not surprising the rig count has been rising in the Bakken because producers there will not see the full extent of the crude price drop we've had over the past month. They just got access to a new pipeline, which will reduce the cost of transporting their crude by train.feedback

James Williams

The higher rig count this week reflects decisions made a couple of months ago when oil prices were higher.feedback

Ashok Sharma

There might be a slow creep up towards 60 (on the Worldscale measure). W60 is at least on the horizon. Rates from West Africa to China are already at W56. The storage play has gained traction. If oil prices head lower, floating storage will get more traction. If prices go to $20 a barrel it will be great for shipping – good for oil tankers.feedback

Ian Reid

I think that's going to be a very hard ask to be honest. We actually see this OPEC agreement breaking up towards the middle of next year. In that case, we're going to see a huge amount of extra oil on the market next year.feedback

Bijan Namdar Zanganeh

We are in discussions with OPEC members to prepare ourselves for a new decision. But making decisions in this organisation is very difficult because any decision will mean production cuts for the members.feedback

Jabar al-Luaibi

Iraq supports the agreement that we reached; if developments happen contrary to OPEC's interests, the (OPEC) ministers will hold an extraordinary meeting.feedback

Jabar al-Luaibi

We are now in talks with Exxon Mobil, if we don't reach an agreement, we have other options.feedback

Ian Reid

I think that's going to be a very hard ask to be honest. They can't get the price up to a level where they can keep the shale guys out of the game so unfortunately they're just chasing their tail at the moment.feedback

Beat Wittmann

Net-net lower prices are positive for G-7 countries and certainly for emerging markets where it's an important input factor…It takes off some pressure, of course, from interest rates and inflation rates as well, so I don't see that as negative as long as we don't go really much lower. Low oil prices - as long as we have orderly markets - is quite positive.feedback

Greg McKenna

A deeper cut could arrest the price decline but OPEC needs to actually do it rather than just talk about it.feedback

Oystein Berentsen - OPEC

Global supply outages have fallen to a new low not seen in years. U.S. shale is returning at full force ... (and there are) high storage levels afloat and on land.feedback

Robert McNally

You cannot fight the Federal Reserve but you can fight OPEC. Somebody at OPEC has to cut further but no one is willing.feedback

Mike van Dulken - Accendo Markets

What didn't help were those conflicting comments from OPEC ... and Iran. They need to be singing from the same hymn sheet if we are to believe that there's positivity to be taken from these cuts while the U.S. continues to produce more and the rig-count goes up. As we saw yesterday, even a drawdown in stockpiles offered absolutely no help because it just added to the murky outlook.feedback

Amrita Sen

This is like a falling knife right now, I genuinely haven't seen sentiment this bad ever. We have had clients emailing saying they have been trading this for 20 or 30 years and they have never seen something like this.feedback

Jenna Delaney - S&P Global

We definitely have seen U.S. production take a lot of players by surprise. People are really watching to see whether U.S. production is going to grow, taper off or skyrocket.feedback

Robert McNally

The so-called 'cuts' implemented in January were off of record high levels producers reached in October last year.feedback

Philippe Crouzet - Vallourec

All this means that in terms of volumes, we are, if not back to the volumes of 2014, at least not far from that level.feedback

Philippe Crouzet - Vallourec

The rigs are much more efficient today than three years ago. They run much faster, drill more wells, and each well is longer than in the past.feedback

Philippe Crouzet - Vallourec

We have kept contacts with people even if they were laid off. We are calling back those former employees and training new ones. There is a race to reduce costs. This has been extremely successful. This was not calculated by oil producing countries that thought that letting the price fall from $100 to $70 a barrel would kill the activity of shale oil and gas in North America. They were completely wrong.feedback

Edward Yardeni

OPEC oil producers continue to put a lid on their output in an effort to prop up prices. Yet the price of a barrel of Brent crude oil is back down.feedback

Fawad Razaqzada - Forex.com

The lack of a positive response in oil prices clearly suggests market participants are not convinced that the OPEC's efforts will help shore up prices in a meaningful way in the short-term as shale supply continues to rise in the U.S. Unless we see a marked reduction in crude stockpiles, the possibility of further short term falls in the price of oil cannot be ruled out.feedback

Junichi Ishikawa - IG Securities

Lower crude prices weaken inflationary pressures and in turn arrest the rise in U.S. yields. U.S. inflation indicators have not been strong to start with. Now that oil is falling, it could add further pressure to the dollar by weakening sentiment towards the U.S. energy sector.feedback

Helima Croft - BC Capital

They have some time to deal with this downtrend in prices as long as they can get prices on a better path in 2018 so I think they can sit tight, let the cuts play out, let the inventories draw down and I don't think they're worried about the next couple of weeks. I think they're playing for 2018.feedback

Amrita Sen

Even if foreign policy were to remain aggressive, we don't see any change in oil policy yet. If anything, with the initial public offering (IPO) the center stage, the Kingdom needs higher prices.feedback

Paul Stevens - Chatham House

The problem is he is unpredictable, and it is not clear who he is relying on for advice.feedback

Kyle Cooper

Quite honestly OPEC is done in terms of being able to support the price. They can still prevent a collapse but they can't support the price they want because the price they want is far above what U.S. oil needs, to be able to produce.feedback

Paul Ciana - Bank of America

It just keeps going down, breaking supports and failing at lower resistance levels. It's the absolute definition of a downtrend.feedback

Paul Ciana - Bank of America

Bond prices have risen to exceed the peak of [that double bottom this year, confirming] that the U.S. 10-year yield will likely fall to 1.97 percent this summer, if not sooner.feedback

John Kilduff - Again Capital

Just like when we hit that level, it caused OPEC to respond. Unless and until they do, we're going to grind lower. Gasoline season turned out to be a bust and with fourth of July just around the corner, it's not going to get any better.feedback

Daniel Yergin

$43 is not very far from $39. What we can guess is we're going to see another summer of cratering.feedback

Dan Pickering

I don't think we're in the zone where people are ready to call this a sustainable number, but they're going to be a little bit nervous and wondering if this is an official double dip. It feels like the market is sending a message to the U.S. to stop, and until the U.S. gets that message, I don't know if there's going to be a change.feedback

Kyle Cooper

If you continue to see that, oil production will start to slow. The companies have locked in for 2017, they're hedged, but this might affect 2018.feedback

Tamas Varga

The increasing August export programme in Nigeria and the jump in Libyan oil output should pressure oil prices further in the short term. If we get bearish U.S. oil statistics this week, we could see a test of $45 on Brent.feedback

Jonathan Roy

What we are starting to see is the enthusiasm in the oil price that was bred by the OPEC cuts ... diminish, and as that diminishes, people are once more paying attention (to) the fundamentals and the heavy oversupply that we're seeing on the oil market, and that's really causing some downside pressure. Investors across Europe are taking cue from the downside we're seeing in London and, looking at the quite heavily overbought conditions that we're seeing in Europe, are taking that as a cue to take some money off the table.feedback

Greg McKenna

That's 22 weeks in a row that oil rigs have been added, a record run.feedback

Khalid al-Falih

In my opinion, market fundamentals are going in the right direction, but in light of the large surplus in stockpiles over the past years, the cut needs time to take effect, . Current expectations indicate the market will rebalance in the fourth quarter of this year, taking into account an increase in shale oil production. Markets determine prices but are themselves driven by unpredictable variables beyond the control of producing nations. Short-term volatility is mostly a reaction to short-term factors ... as well as the role of speculators in stock markets that increase market volatility.feedback

Khalid al-Falih

Most day to day fluxes in the market are automatic reactions to a number of short-term factors such as news headlines [and] forecasts of production from some sources that may not eventually materialize. In my opinion, market fundamentals are going in the right direction, but in light of the large surplus in stockpiles over the past years, the [OPEC-led] cut needs time to take effect.feedback

Khalid al-Falih

The market often tends to ignore these criteria and focused on the drop in U.S. inventories that came below expectations.feedback

Colin Davies

In terms of the time horizon, the economics of the Permian are so good they are going to keep on drilling.feedback

Daniel Yergin

Those are the two things that are defining the market right now.feedback

Daniel Yergin

For both sides, there has been one twist in the road after another.feedback

Badr Jafar

It remains to be seen if drilling can continue at the same pace in a sub-$50 environment once price hedges expire. But if it does, I believe OPEC producers will have no choice but to revert to preservation of market share once again, which could see prices nose-dive. And the cycle will continue.feedback

Badr Jafar

The unexpected resilience and revival of US shale production is already frustrating Opec's efforts to draw down global stocks, and threatening its market share at the same time. But if it does, I believe Opec producers will have no choice but to revert to preservation of market share once again, which could see prices nose-dive. And the cycle will continue.feedback

Fadel Gheit - Oppenheimer Holdings

Nobody wants to come to grips with the fact the days of $70 and $80 oil are over. The shale producers continue to cut costs, and that gives them the hope to survive. But if oil prices don't rise significantly from the current level, 50 per cent of the shale producers will go out of business.feedback

Gary Bradshaw - Hodges Capital Management

We'll have to see if these U.S. producers have the discipline to not go crazy and keep prices where they keep making money.feedback

Michael Roomberg

Margins will continue to be squeezed by a 15 to 20 percent increase in service costs in the Permian basin.feedback

David Stubbs

Numbers showing the supply-demand imbalance are pushing commodities to the downside. OPEC has been unable to control global production, and the situation in Qatar is showing it is not very united. If retail sales are weak then the pie is contracting and someone is going to get hammered. Those that are unable to deal with that are going to see a much weaker bottom line.feedback

Dave Tyrer

Today's latest move shows that Asda is once again leading the way in reducing the price at the pumps to help the millions of motorists across the UK. Our new national price cap of 111.7p per litre on both unleaded and diesel will be welcomed by the millions of drivers who will be starting to plan their summer holidays.feedback

Luke Bosdet

Cheaper fuel at 4p a litre below than the national average has paid dividends for the supermarkets by maintaining their sales volumes while others' have dropped. This may pull back the customers who have been going to non-supermarket forecourts for top-up shopping combined with a fuel stop.feedback

Jim Cramer

Second, while it's true that the OPEC production cuts haven't done enough to stem the glut – in fact U.S. production, barrel for barrel, is making up for whatever's been taken out – the demand for oil is not declining as the bears would have you believe.feedback

Oystein Berentsen - OPEC

Chinese demand is slow … so we have a build-up of crude in Asia where demand seems to have slowed for now.feedback

Brandon Michael - Robert W. Baird & Co.

It was a bloodbath today. No matter what OPEC is doing, these shale producers are just proving to be very persistent and keep on pumping oil out.feedback

Michael Tran - RBC Capital Markets

A lot of producers held back on locking in hedges in the first quarter because Opec cut their historic deal and they thought there would be a linear shift higher in prices. But then, we saw several pullbacks.feedback

Greg McKenna

It's the only statistical proof the market can get to confirm or deny OPEC's claim the market is heading back toward balance.feedback

Lynn Helms

The markets are watching to see if U.S. shale production offsets OPEC cuts keeping crude oil inventories high.feedback

Rob Thummel

Producers are working in an environment where they see service cost increases on the horizon. They see their expenses going up, but their revenues are not going up correspondingly, which is why they do not want to hedge and compress their margins.feedback

Bill Costello - Westwood Holdings Group

I think companies are a little bit nervous that they are underhedged right now and they will try to take advantage of any hedging opportunity they get at about US$50 per barrel.feedback

Stephen Brennock

With the typically tighter second half of the year fast approaching, rumors of oil prices having found their bottom are doing the rounds. Yet such claims are premature as lingering doubts that prolonged OPEC curbs will drain the oil glut along with the simultaneous uptick in the US, Libyan and Nigerian output make for a bearish cocktail.feedback

Olivier Jakob - Petromatrix

When you start to approach $45 a barrel in WTI, you are in an area where you do find some price support and I think there has been some evidence last week of investment flows coming back into crude oil. You have to be careful not to be too optimistic for now. Physical differentials are still under pressure and the time structure is still under pressure in Brent. It is a bit premature to call for much higher oil prices.feedback

Alexander Novak

As of today, (oil) supply is exceeding demand, and we see that global inventory is dropping, but to ensure a true market balance, it is required that the inventory drops down to the five-year average, and we are sure that it will happen in the next few quarters, probably, by the end of the first quarter of the next year.feedback

Alexander Novak

Therefore, these shale production increases, we foresaw that. Today we have to monitor the situation, and analyze the current developments. In my opinion, the deal is highly effective, and as for shale production recovery, we have to monitor it.feedback

Alexander Novak

We believe that this conflict should be resolved via political means, and we do hope that this conflict in the Middle East will be reconciled, because, really, for the sake of the market and further cooperation expansion on the part of the Persian Gulf a stable and normalized situation is required.feedback

John Kilduff - Again Capital

Our market seems to be getting some support from this situation even though we're obviously not a big exporter of LNG, it does seem to be a rally in sympathy of what's going on in that market and in Europe. It only highlights a real bright spot for U.S. natural gas producers as we ramp up our export capacity. U.S. shale producers of natural gas are getting ready to do to the global gas market what U.S. shale oil producers have done to OPEC.feedback

Matt Smith

I think we get too much buying interest coming in because there's demand coming through.feedback

Bassam Fattouh

In terms of Opec, Qatar is a very small player. Opec has had worse conflicts in past.feedback

Andy Lipow - Lipow Oil Associates

The market is catching its breath after the inventory report which, as far as the oil market was concerned, stunk. The market continues to be impatient with the OPEC and non OPEC cuts and is looking for more data world wide that inventories are indeed falling.feedback

Philip Petursson

It sheds light on the challenge that the oil markets are facing. OPEC can cut, but it is having very little impact on the overall price as the U.S. is offsetting production cuts out of the Middle East with production increases of its own. When we look ahead into Q2 and Q3 earnings growth, they look very robust.feedback

David Madden - IG Asia

The oil market has been in decline since the OPEC announcement last month, and now that U.S. stockpiles are rising, we may see a continuation of the decline.feedback

Michael Hewson - CMC Markets

This appears to have raised concerns that this could cause the current OPEC deal to fracture, and while Middle East tensions are never a good thing, in the grand scheme of things a fracture seems unlikely given how small Qatar's oil output per day actually is, around 730k a day.feedback

Chad Morganlander

We believe oil will continue to hit lower lows because of not only global growth issues, but also the deal with OPEC. We don't believe it's going to solve the problem.feedback

Jameel Ahmad

It would be premature at this stage to suggest that this development could have an impact on the Opec deal, but a potential risk to monitor might be that Qatar will view this as being provided with less encouragement to comply with the agreed production quota. However, this is completely hypothetical however at this stage. In the instance that this did occur, or if other producers included in the Opec agreement diverted away from the production quota,then this would be seen as having negative connotations on the price of oil.feedback

Olivier Jakob - Petromatrix

I think it's still going to be a bit of a debate on the true impact it can have on the oil market. In terms of oil flows it doesn't change very much, but there is a wider geopolitical impact one needs to consider.feedback

Daniel Hynes

On the face of it, it could present a risk, but I don't think there is too much in the Qatar situation. Geopolitical risks haven't really been that influential in recent times and I don't think that will change too much.feedback

Daniel Hynes

The extension of Opec cuts has provided a fairly solid support level for Brent around US$50 a barrel, so anytime it dips below that, I think we'll see buying come back fairly quickly.feedback

Virendra Chauhan

There is not much geopolitical risk premium priced into oil right now, (but) if tensions do ratchet higher between the key members of the Organization of the Petroleum Exporting Countries (Opec), like Saudi Arabia, Iran and Iraq, then the market will start paying attention to this.feedback

Igor Sechin - Rosneft

Well, if the question is how OPEC is going to exit from these arrangements abruptly, we will also be prepared. If something goes wrong, we will not let them occupy our markets. We'll defend ourselves.feedback

Jim Cramer

Crude's come under pressure any time we get a big jump in rigs. Why does it matter so much? Because each rig can produce a ton of oil and whatever OPEC tries to keep off the market has been more than made up by our own oil companies in shales like the Permian in Texas, SCOOP and STACK in Oklahoma and the Bakken in North Dakota.feedback

Ole Hansen - Saxo Bank

Why start talking about 'exit strategy' nine months ahead? That is clearly what they are counting on. That the data will start to provide the support that they've been looking for the past two years.feedback

Sukrit Vijayakar

We may or may not see more huge draws. But crude production is slowly but surely going to neutralize the (OPEC-led) production cut.feedback

Jeffrey Halley

This could lead to a drilling free for all in the U.S. and also see other signatories waver in their commitments, . This outcome could increase the supply-side equation from the United States and complicate OPEC's forward projections. A scenario that would not be favourable to oil prices.feedback

Jonathan Barratt

I see the little connection between oil markets and the Paris accord. I think the market is looking for swing factors like an increase in demand from China.feedback

Sabine Schels - Bank of America Merrill Lynch

People will come back into the market and we may also see availability of mine sand go up later this year or in early 2018. So there will be cost inflation, but not that much.feedback

Michele Della Vigna - Goldman Sachs Group

We think it's a broad renaissance of shale led by incredibly cheap credit, with even sub-investment grade [exploration and production] companies today borrowing at just 7 percent on the high yield market.feedback

Daniel Yergin

I think that's the kind of viewpoint OPEC took, that they've got to run this thing into next year.feedback

António Guterres - United Nations

Climate change is undeniable. I urge all the governments around the world to stay the course, to remain committed to the implementation of the Paris Agreement to the benefit of all of us. And in relation to U.S. society, I am deeply convinced that states, cities, the business community, the civil society, will also remain engaged, will bet on the green economy.feedback

Doug King - RCMA Asset Management

In my opinion, they should have done a deeper cut for a shorter period of time to ensure the inventory decline happened right now. The trouble with drawing it out is there are too many unknowns. It was the wrong deal, but can still ultimately work. The key is to see how quickly crude inventories in particular will decline over the next few months.feedback

Alan Gelder - Wood Mackenzie

There needs to be evidence the drain is taking place, which we think will become increasingly apparent as we go through this year. The challenge then becomes: do you keep volumes off and then how do you return them? If there is a sudden return, that would have all the negative pricing consequences of a large jump in supply and psychology.feedback

Paul Horsnell - Standard Chartered

OPEC went out of their way to ensure no one was surprised and then you get a market that wanted to be surprised. It is highly dependent on what happens in the next nine months. U.S. shale isn't going to fill in the gaps forever, but going directly on the (market) response to the meeting, is it enough? You always have to add a second bit – which is 'enough to do what?' And for that you have to do the balances.feedback

Scott Shelton - Icap

This was a bullish report. It's what the market needs to get a little more excited about prices. I don't think this is going to be the end of it, I see the draws increasing from here.feedback

Andy Lipow - Lipow Oil Associates

I expect we're going to see new records set over the next six months as U.S. production continues to ramp up ... OPEC has become the swing producer of the world because other producers have figured out how to lower their costs and increase their efficiency and get more oil out of the ground profitably at $50 ... OPEC needs to just grit their teeth and wait for world oil demand to soak up the oversupply. They're going everywhere, they're going to Europe. They're going to Asia.feedback

Andy Lipow - Lipow Oil Associates

What we've seen is that a lot of the increase in domestic production has been accommodated by an increase in refining capacity, making the U.S. a major gasoline and diesel supplier to world markets. U.S. refiners have added over 800,000 barrels a day of capacity since January 2015 and they're using it.feedback

John Kilduff - Again Capital

We know anecdotally that Asian buyers have been procuring supply deals with U.S. suppliers over the last several months. There's actually been worries among Asian buyers that the OPEC deal would impact them and they've been picking up these purchases. That includes China, India and to a lesser extent South Korea.feedback

Matt Smith

We didn't see that high a volume. We're not sure the methodology of the EIA. We saw it a little bit lower. We saw it at 850,000. We track the Gulf Coast cargoes and some flows by pipeline as well. We're seeing it at about 850,000, all told. the EIA export number is fairly good when it's averaged out. On a week-to-week basis it is extremely volatile. It's potentially due to an extra cargo or two that bumped up that number.feedback

John Kilduff - Again Capital

U.S. producers are stepping up to fill the gap left by OPEC and other non-OPEC producers. It's going to a number of locations but increasingly Asia, where the real global battle for market share is on.feedback

Gene McGillian - Tradition Energy

There are signs that the 1.8 million barrel cut is not really what the market is feeling because of rising production in the U.S., Libya, Nigeria and even the North Sea. The worry is that you have rising output in the U.S. and that's going to offset cuts.feedback

Mohammed Barkindo

It (the volatility) is largely I understand due to some automated trading models and some expectations on what we should do or should not do but we will not be disrupted because we firmly believe that the extension of the declaration of cooperation to the first quarter of next year is in the best interest of all producers and consumers and you can see that the fundamentals are gradually but steadily improving. The oil price has not been our focus, as you know – as a matter of policy. We focus on fundamentals and we do not want to be distracted from that in order to stay on course.feedback

Mohammed Barkindo

We are continuously reviewing market fundamentals and you cannot at this moment rule out any further policy decisions. The level of volatility in the market has been of concern not only to us in OPEC but also to the non-OPEC as well as the consuming countries … I think going forward we are on course - along the way, you may have some bumps here and there as a result of other factors that may not necessarily be related to the fundamentals – but in general we are on course to achieving our objectives.feedback

Alexander Novak

If minister Al Falih says something, I know it will be done. It is necessary to work out new framework principles for continued cooperation between Opec and non-OPEC even after the expiration of the Vienna agreements.feedback

Alexei Texler

My forecast for next year - 547-551 million tonnes - depends on how smooth the exit from the agreement is.feedback

Alexei Texler

Thanks to the profit-based tax, we expect that the fields covered will see an increase in production of up to 20 percent over the next five years.feedback

Nick Coleman - S&P Global

OPEC is competing internally for the Asian market and they are seeing a lot of oil coming from new sources into Asia from the U.S., from the North Sea, from Kazakhstan. Can these individual OPEC countries really maintain their oil production constraint at the risk of losing market share in Asia?feedback