Should U.S. Shale Producers Resist Increasing Output?

Following a tumultuous 2020, U.S. shale producers face a new dilemma of ramping up production in the face of global oil supply uncertainty. With West Texas Intermediate (WTI) trading above $50/barrel, there is significant temptation for shale producers to surge their output, however, the constant growth strategy of previous years may prove to be costly […]

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Production Cuts Start Early for These Two

OPEC+ came to an agreement earlier this month to institute record-breaking production cuts of nearly 10 million barrels per day. The production cuts were set to take effect on May 1st, but some members have taken it upon themselves to start earlier. Kuwait and Saudi Arabia have both made the decision to start scaling back […]

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Russia Considers Cutting Production

In an attempt to curtail the downward plunge of global oil prices, Russia is considering supporting cuts among OPEC and its partners.  On Thursday, Sergey Lavrov, Russia’s top diplomat, confirmed Russia’s support for production cuts following a conversation between President Putin and the King of Saudi Arabia.  However, Energy Minister Alexander Novak said on Friday […]

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Global travel restrictions encourage global fuel glut

With global chatter circling around the latest mass scale respiratory ailment, the coronavirus, there is global glut of petroleum fuels.  Like SARS, in 2003, the coronavirus is thought to spread through respiratory droplets being transmitted form one person to another (i.e., sneeze or cough).  With the potential for person to person transmission being so high, […]

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OPEC Deepens Output Cuts

The OPEC meeting that concluded today in Vienna ended with ministers approving productions cuts for the first quarter of 2020. The cuts for OPEC+ will be increased from 1.2 million bpd to 1.7 million bpd.  A 500,000 bpd cut should be painless for the organization as they are currently at  over-compliance with the cuts as […]

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