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Saudi Arabia, Gulf OPEC ready to cut oil output by 4 percent

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Saudi Arabia and its Gulf OPEC allies are willing to cut 4 percent from their peak oil output, energy ministers from the Gulf countries told their Russian counterpart this week, sources familiar with the matter told Reuters.

The offer was made at a closed-door meeting in Riyadh, where the ministers met on Sunday. But Russian Energy Minister Alexander Novak told the officials that Moscow would not cut output, but rather freeze it at current levels, the sources said.

The 4 percent offer is likely to be made at a meeting of OPEC experts and officials from other oil producers such as Russia on Oct. 28-29 in Vienna, to nail down the details of last month’s OPEC production-cap agreement in Algeria.

Iraq, OPEC’s No. 2 producer, said this week that it would not cut output and should be exempted from any curbs as it needs funds to fight Islamic State. Baghdad’s stance is likely to face opposition from Riyadh and its Gulf allies, OPEC sources said.

“If there is a cut, then everyone must cut. No exemptions,” one OPEC source said, commenting on Iraq’s demands.

There is a general understanding that only Libya, Nigeria and Iran should be exempt as their output had been hit by wars and sanctions, three OPEC sources said.



8 Comments on "Saudi Arabia, Gulf OPEC ready to cut oil output by 4 percent"

  1. rockman on Thu, 27th Oct 2016 1:09 pm 

    OK…later OPEC production: 35.37 mm bopd. A 4% cut = 33.96 mm bopd. According to the EIA current global production: 96.6 mm bopd. So less the OPEC cut = 95.19 mm bopd.

    Last time the world produced 95.2 mm bopd was the period from 4Q 2014 thru 1Q 2015. Oil prices during that period was WTI sold for an average of $53/bbl and Brent about $56/bbl.

  2. Apneaman on Thu, 27th Oct 2016 3:26 pm 

    Warning: ExxonMobil may be in irreversible decline

    “ExxonMobil, like the rest of Big Oil, is in the midst of a serious slump.
    Exxon stock is down 17% from its 2014 peak amid the crash in oil prices. The oil giant’s profits have plunged to 17-year lows and its once-perfect AAA credit rating has evaporated.”

  3. rockman on Thu, 27th Oct 2016 4:43 pm 

    “Standard and Poor’s downgraded ExxonMobil’s credit rating from AAA to AA+ on Tuesday because of expectations of continuing low oil prices. S&P told CNBC that it has had a AAA rating on Exxon since July 5, 1949. The move leaves only Microsoft and Johnson & Johnson with AAA ratings from S&P.”

    So XOM has as good or better credit rating then all the other companies listed by S&P except for two. Oh my! LOL.

  4. GregT on Thu, 27th Oct 2016 4:56 pm 

    Standard and Poor’s Credit Rating Agency Charged With Fraud in Sub-Prime Mortgage Ratings

    The US Department of Justice on Monday filed a civil suit in Los Angeles charging Standard & Poor’s Ratings Services, the world’s biggest credit rating agency, with defrauding investors and the public by inflating the credit ratings it gave to subprime mortgage-backed securities in the run-up to the 2008 financial crisis.

  5. Anonymous on Thu, 27th Oct 2016 5:23 pm 

    Rockman cant help reflexively defending his greasy masters. I get that, don’t bite the hand that cancers you and all that.

    As Greg points out, ‘credit ratings’ are an ‘industry’? field? that is every bit as corrupt, and ultimately useless, as the rest of the amerikan financial system. Put differently, ‘credit ratings’ outfits are faith-based entities, not at all credible. Read tea-leaves or chicken entrails rockman, pick numbers out of a hat etc, if you want to determine EM’s ‘credit-worthiness.

    Mind you EM is a bit of a ‘special case’ here, as oil corporations are in the top tier of entities that control the uS gov’t. So, yea, their credit rating, is more a function of their control over the formal gov’t, and their cartel-like attributes, than of sound business practices.

  6. makati1 on Thu, 27th Oct 2016 7:55 pm 

    Anon, you said it better than I could. Some still deny that their lives hang by a thread and the Deep State holds the scissors.

  7. Apneaman on Thu, 27th Oct 2016 8:15 pm 

    Anonymous, rockman and those like him defend most authority. It’s a trait that is inherent in conservation type people, but has been amplified to pathological levels in the american conservative due to the full court press propaganda and indoctrination since childhood. Being one of the more fortunate beneficiaries of empire makes his loyalty all the stronger. Last year he was actually defending citizens united, Seriously! He also like to use the the other standard conservative responses like, “personal responsibility” and “free will” (myth) to defend all corporate and authoritarian malfeasance. It’s also a way for criminals like him to soothe any guilty feelings that might pop up. He got every neo liberal think tank response memorized. Biggest, self deluded, self aggrandizing piece of shit on this site if you ask me. Was pretty quite when Houston was getting hammered by AGW jacked rain bombs this year and his beloved oily mess was polluting the Texas waters. The oily PTB used their influence to try and cover that up. They were somewhat successful as it did not make the MSM news and that’s good enough for the oil overlords.

    Flooding sweeps oil, chemicals into rivers

    “Scores of photographs taken by state emergency-management officials show that when floodwaters rise in Texas, they inundate oil wells and fracking sites, sweeping crude and noxious chemicals into rivers throughout the Lone Star State.

    Most recently, rainbow sheens and caramel plumes can be seen radiating from tipped tanks and flooded production pads during the March flood of the Sabine River, which forms much of the state’s boundary with Louisiana. Similar scenes are visible in photos from last year’s floods of the Trinity, Red, and Colorado rivers.”

    “Despite the many photos of apparent spills in the past three years, Nye did not provide any examples of enforcement actions taken against energy producers whose sites leaked during severe floods.”

    These fracking fucks don’t give a fuck. Like rockman has said (more than once) as to their thoughts about anyone who gets ripped off or externalized “we’re not your mommy” lol lol lol lol lol lol. That is the one thing they say that is the truth. They don’t give a fuck about anything but themselves – consequences be damned. And the lot of them are protected by the texass RR commission, most of the corporate state and their full time PR denial campaign. Typical behaviour and attitude for the ruling classes and their managerial class throughout history. Pointing all this out is meaningless and will change nothing, but the asshole/joker in me just loves to expose and mock cunts like the mighty rockman while he tries to hold court here at

  8. rockman on Fri, 28th Oct 2016 7:32 am 

    Anon – “…credit ratings’…that is every bit as corrupt, and ultimately useless…”. Don’t bitch at me. Apeman is the one that thought the credit rating story was important…not me. You two are free to argue amongst yourselves. LOL.

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