Russian President Putin said that ahead of the OPEC+ meeting in Vienna that Russia and Saudi Arabia have agreed to extend the existing production cuts for another 6=9 months. The U.S. is near record productions and exports. The cuts promised are at 1.2 bpd by OPEC and Non-OPEC.
With world leaders heading to Japan and an OPEC meeting next week the WSJ reports Iran warned Thursday that if the 2015 nuclear agreement unravels, it would follow North Korea and quit a treaty aimed at stopping the spread of nuclear weapons.
The OPEC+ meeting in Vienna came at a critical time with oil prices down over 30% , a trade war in affect and Iran sanctions on. The POTUS has been brazenly telling Saudi Arabia to not cut, the U.S. has record productions and exports. The cut was promised at 1.2 bpd by OPEC and Non-OPEC.
Both the U.S. and Iran are in a tight spot with Iran’s imploding economy and impending isolation oil prices have soared to 4 year highs. Iran plans to use private companies to counter sanctions. With high oil a risk to the global economy the US is considering waivers.
The next OPEC+ meeting in Algiers on September 23 comes at a critical time with a trade war in affect, Iran sanctions about to come on and the U.S. sitting just under record productions and exports. All eyes are on Russia and Saudi Arabia and of course US Production.
Transportation of oil and gas from the Middle East can be disrupted if any of the routes are disrupted which can affect the price of crude oil in particular if they are choked off. The Strait of Hormuz is the major choke point.
Iran is in a tight spot. The U.S. pulled out of the Iran nuclear deal, its currency has fallen about 50% since and locals are protesting as they lose purchasing power. Now throw in Trump’s call to send oil exports to zero and have Saudi Arabia fill the gap. What to do, go private?
The Saudi Arabian economy recovered in the first quarter of 2018 of shrinking in 2017. With oil production set to raise 20% with King Salman bin Abdulaziz Al Saud intention to boost oil production by up to 2 million bpd. There are hopes this will boost the stagnant non-oil segments.
With the agressive trade tactics of the U.S. it is no surprise that China is ignoring the US demand that it stops importing oil. China is Iran’s biggest impoter and it has developed a friendly relationship with Iran it says.
U.S. President Trump speaking after meeting with French President Macron made comments that could prove devisive to the EU, France and America. He stated “Trade with France is complicated as EU has trade barriers that are unacceptable”