Market watch: OPEC leaves door open for possible quota cuts

By the OGJ Online Staff

HOUSTON, Dec. 18 -- Energy futures prices weakened Monday as traders ignored Norway's pledge to reduce its oil production by 150,000 b/d during the first 6 months of the new year.

However, officials of the Organization of Petroleum Exporting Countries said Tuesday that energy ministers from member countries would discuss "coordination of the implementation of the organization's decision to reduce output" at a Dec. 28 meeting in Cairo.

That seemed to indicate OPEC is considering implementing at least some of its proposed 1.5 million b/d rollback of production quotas, even if non-OPEC producers fall short of the 500,000 b/d production cut demanded by the cartel.

So far, Norway, Russia, Mexico, and Oman have pledged reductions totaling 425,000 b/d, or 85% of what OPEC demanded. The OPEC secretariat Monday acknowledged the "positive statements of support" by those producers.

OPEC officials said production quotas would be decided at the upcoming meeting "in light of pledges made so far by non-OPEC oil producers and after reviewing the current oil market situation."

The January contract for US benchmark sweet, light crudes slipped by 1¢ to $19.22/bbl Monday on the New York Mercantile Exchange, while the February contract gained 3¢ to $19.52/bbl. However, both declined in after-hours electronic trading to $19.15/bbl and $19.46/bbl, respectively.

Home heating oil for January delivery lost 0.44¢ to 53.81¢/gal on the NYMEX. Unleaded gasoline for the same month was down 0.48¢ to 54.55¢/gal. The January natural gas contract also declined by 16¢ to $2.69/Mcf.

In London, the market for North Sea Brent crude declined because of the lack of bullish factors to support a small rise in prices with the expiration Monday of the January contract. The February position closed at $19.06/bbl, down 9¢ for the day after trading in the range of $18.65-$19.38/bbl on the International Petroleum Exchange.

However, the January natural gas contract shot up 21.1¢ to the equivalent of $4.33/Mcf on the IPE.

The average price for OPEC's basket of crudes gained 17¢ to $17.47/bbl Monday.

However, that price averaged $16.84/bbl over all of last week, down from an average $17.93/bbl during the previous week.

So far this year, OPEC's basket price has averaged $23.34/bbl, down from an average $27.60/bbl during all of 2000.

Related Articles

Victoria extends drilling, fracing ban

01/30/2015 The new Victorian Labor government of premier Daniel Andrews has extended the coal seam gas (CSG) exploration and hydraulic fracturing ban in the s...

Oxy cuts capital budget by a third

01/30/2015 In the midst of falling oil prices, Occidental Petroleum Corp., Houston, expects to reduce its total capital spending for 2015 to $5.8 billion from...

Gas-turbine units in transit to Vostochno-Messoyakhskoye field

01/28/2015 JSC Gazprom Neft reported that six gas-turbine power units are in transit to Vostochno-Messoyakhskoye field in the Yamalo-Nenetsk Autonomous Region.

Eni lets $2.54-billion contract for Ghana FPSO

01/28/2015 Eni SPA unit Eni Ghana Exploration & Production Ltd. has let a $2.54-billion contract to Malaysia’s Yinson Holdings Bhd. for the chartering, op...

Chevron, BP, ConocoPhillips join to explore, appraise Gulf of Mexico leases

01/28/2015 Chevron Corp. subsidiary Chevron USA Inc., BP PLC unit BP Exploration & Production Inc., and ConocoPhillips Co. have pledged to work together t...

Carrizo cuts drilling, completion spending by 35%

01/27/2015 Carrizo Oil & Gas Inc., Houston, is cutting its drilling and completion capital expenditure plan for the year by 35% to $450-470 million, but e...

Stone Energy lets pipe supply, installation contracts for Amethyst field

01/27/2015 Stone Energy Corp., Lafayette, La., has let flexible pipe supply and installation contracts to Technip SA for Amethyst field on Mississippi Canyon ...

Hess cuts capital budget by 16% to $4.7 billion

01/27/2015 Hess Corp. has set a capital budget of $4.7 billion for 2015, down 16% from $5.6 billion spent last year. The company at the beginning of 2014 repo...

OGUK: Push to ban fracing in UK ‘ill-informed’

01/26/2015 The House of Commons Environmental Audit Committee’s proposed amendment to the infrastructure bill that would introduce a moratorium on hydraulic f...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected