Opec

A roundup of news and commentary from NGI’s LNG Insight

A modest uptick in the oil patch, and in the Permian Basin in particular, drove a three-rig increase in the U.S. rig count for the week ended Friday (March 6), according to the latest data from Baker Hughes Co. (BKR).

In another sign of the impact on energy demand from the worldwide coronavirus, the Organization of the Petroleum Exporting Countries (OPEC) on Thursday recommended that members reduce global crude output through the end of the year, with an additional adjustment through June.

The global oil cartel and its allies earlier this month agreed to increase their oil production cuts beginning with the new year, but those reductions are unlikely to resolve a massive oversupply, according to Rystad Energy.

The Organization of the Petroleum Exporting Countries, aka OPEC, and its allies on Friday agreed to reduce overall production levels by another 500,000 b/d from January through March.

As expected, OPEC, aka the Organization of the Petroleum Exporting Countries, and its Russian-led allies have agreed to extend crude production reductions to the end of next March to help balance a global market upended by massive U.S. supply.

Crude oil prices have taken a hit in recent weeks amid concerns over global economic growth prospects, just as U.S. production is on track to reach record levels and as recent data points to swelling domestic stockpiles, leaving the market to navigate “rising supply and demand uncertainties,” according to analysts.

The Organization of the Petroleum Exporting Countries, aka OPEC, and its Russian-led allies on Friday agreed to further reduce global oil output in an attempt to balance an overflowing market and stem falling prices.

Qatar announced Monday that it would withdraw from the Organization of the Petroleum Exporting Countries (OPEC) to keep its focus on liquefied natural gas (LNG), its main export product.