OPEC cutting production

[ModelNforNerd]

Guess the cost of oil was down too much, so it looks as if they're going to tweak supplies to try and bump it up.....

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[SageBrush]

I'm at a loss to explain why it took so long and why they are not cutting production more.
This time around production is dropping ~ 3% and prices are already spiking 10%.

They can easily drive oil up to $60/barrel before shale oil becomes profitable, not to mention holding a sword over the shale producers that they can bankrupt them at any time. Again.

 

[rw86347]

I hope we bankrupt the Middle East!

 

[Sharkbait]

Let's face it; I think OPEC is no longer significant. The world is awash with oil. The bigger problem isn't cheap or expensive oil. It's carbon emissions. Solving all the problems with carbon emissions is like solving problems with the weather. Like Charles Warner said; "Everybody complains about the weather, but nobody does anything about it."

 

[kort677]

that will have about a few days effect on price as the africans, and venezuelans continue to ignore their permitted quotas. in addition the US is a net exporter now and could easily ramp up production to take advantage of higher prices.

 

[Sharkbait]

in addition the US is a net exporter now and could easily ramp up production to take advantage of higher prices.

North American oilsands projects require a higher price per barrel to expand but existing projects do not. Sixty dollars a barrel might be the sweet spot for OPEC but I wonder if it can be supported, even if you discard the constant fighting amongst themselves.

 

[ModelNforNerd]

North American oilsands projects require a higher price per barrel to expand but existing projects do not. Sixty dollars a barrel might be the sweet spot for OPEC but I wonder if it can be supported, even if you discard the constant fighting amongst themselves.

Long gone are the days of triple digit barrel prices.

But OPEC countries have never really been known for being frugal. I'm sure they just assumed the cash would keep rolling in forever.

 

[kort677]

North American oilsands projects require a higher price per barrel to expand but existing projects do not. Sixty dollars a barrel might be the sweet spot for OPEC but I wonder if it can be supported, even if you discard the constant fighting amongst themselves.

I wonder how they are pumping a few million barrels a day current with the price below $50 a barrel, do you really think that they're taking such a big hit on what they're producing? the real generic number for pulling it out of the sands is closer to $35 bbl.

 

[Sharkbait]

the real generic number for pulling it out of the sands is closer to $35 bbl.

As you say, there are existing projects making money at $35 but for expansion and new projects the cost is higher, more like $50-$60/barrel depending on the source of information:

Oil sands breakeven prices major projects U.S. and Canada 2015 | Statistic
Production cost and the Canadian oil sands in a lower price environment | IHS Blogs