OPEC Runs Out Of Options -- Bid To Boost Oil Prize Fizzles -- Bloomberg -- May 6, 2017 - Hallo friendsMY LIVE MY WAY, In the article you read this time with the title OPEC Runs Out Of Options -- Bid To Boost Oil Prize Fizzles -- Bloomberg -- May 6, 2017, We have prepared this article for you to read and retrieve information therein. Hopefully the contents of postings Article my style, Article my way, Article New ways, Article their way, We write this you can understand. Alright, good read.

Title : OPEC Runs Out Of Options -- Bid To Boost Oil Prize Fizzles -- Bloomberg -- May 6, 2017
link : OPEC Runs Out Of Options -- Bid To Boost Oil Prize Fizzles -- Bloomberg -- May 6, 2017

OPEC Runs Out Of Options -- Bid To Boost Oil Prize Fizzles -- Bloomberg -- May 6, 2017

Link here.

I'm only interested if there is anything new in the story -- something new that hasn't been posted on the blog in the past four weeks. Let's see:

• a rebound in US shale output and stubbornly-high stockpiles show the world's three-year glut isn't shifting (nothing new)
• meeting in Vienna, May 25; most likely OPEC will "keep the course"; the alternatives look even worse (nothing new)
• if OPEC cuts more, it is likely even more shale supplies might come along (not particularly new)
• "with OPEC already showing near-perfect compliance in delivering its pledged 1.2 million bopd production cut" -- same old tune -- in fact;
• OPEC based cuts on run-up in production
• some countries exempt from any cut and any ceiling
• Saudi Arabia caught siphoning off crude oil in storage to more than make up any production cut (wink, wink)
• IEA still predicts a rapid reduction in the supply glut in 2H17; in fact, at the rate of the US drawdown this past week, it will take 200 weeks for US storage to get back to historical levels
• global fuel stockpiles have actually increased during the first quarter, the IEA estimates (is this new? maybe)
• "in the US, crude inventories are dropping, but remain near record levels" -- the drop has been trivial; a rounding error
• "meanwhile, American production has roared back, growing by 523,000 bopd to the highest level in almost two years" -- EIA
• it seems like EIA and IEA are on different pages (nothing new)

Bullets #9, #10, and #11 -- most noteworthy.

Meanwhile, elsewhere Russia is "crowing" about cutting more than it agreed upon. Regardless of agreements, does this really matter:

• Under the deal, Russia pledged to reduce its average daily production gradually by 300,000 barrels to 10.947 million bpd from the October level of 11.247 million bpd.

Cutting from 11.247 million bopd to 10.947 bopd -- even before proposed cuts there was that much variation month-to-month. But I"m sure Russia is doing the same thing Saudi Arabia is doing: making up for cuts by taking crude oil out of storage. The whole thing is a shell game. 

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