Is a half decent club hit early this year for Afrojack & Fais.
OPEC used to have it all, but now it is just another face in the crowd. Not only the market is demanding a continuation of the oil production cuts, the market demands more steeper cuts.
Why is this so, you might ask? Well to anwser that question, you will have to look how Saudi Arabia F Up in trying to kill shale oil.
First when the prices were high , the Saudi's flooded the oil market in the hopes of killing shàle, but the strategy failed, coz the price was still good enough for shale to book a profit and learn to be cost effective in order to fight yet again.
And then when the prices were down, the Saudi's cut production, and yet again gave shale a lifeline by bringing the prices above their cost.
Market Watch, has this sad oil story. Read Below :
Oil ends lower as crude producers fail to ease global supply angst
U.S. rig count rises; OPEC meeting fails to impress
Oil prices finished lower Monday, pressured by another weekly rise in the U.S. oil-rig count and uncertainty over whether OPEC will extend its production cuts into the second half of the year.
May West Texas Intermediate crudeCLK7, +0.17% fell 24 cents, or 0.5%, to settle at $47.73 a barrel on the New York Mercantile Exchange—giving back nearly all of th e nearly 0.6% gain it saw Friday. May Brent crude LCOK7, -0.02% on the ICE Futures exchange in London eased by 5 cents, or 0.1%, to $50.75 a barrel.
On Friday, WTI oil rose 0.5%, while Brent gained 0.5%, but each saw weekly losses of 1.7% and 1.9%, respectively.
Five representatives of countries that signed up to the Organization of the Petroleum Exporting Countries output agreement—Kuwait, Algeria, Venezuela and non-OPEC nations Russia and Oman—met in Kuwait on Sunday to review the current levels of compliance.
OPEC officials urged members to cut oil production in line with last year’s agreement, and said the compliance committee will meet again in late April to recommend to the cartel whether cuts need to be extended another six months.
The gathering “provided only a lackluster statement that stops short of the commitment to rolling over the cuts that many investors hoped to see,” said Enrico Chiorando, a U.K.-based analyst at energy consultancy Love Energy.
Oil prices, however, settled off their worst levels of the session after Mohammed Saleh al-Sada, Qatar’s energy minister, speaking at an event in London Monday, said the agreement should be extended beyond the third quarter of this year, according to a report from the International Business Times.
“OPEC members increasingly indicated support for extending the cut beyond the current end date in June,” said Chiorando. “While an extension remains uncertain, OPEC members appear to be largely in favour and will be keen to press ahead if they can secure support from the 11 nonmembers who have aligned themselves with the drive.”
Meanwhile, “growth in U.S. shale production continues to offset OPEC’s efforts,” said Chiorando.
A report from Baker Hughes released Friday showed the number of active U.S. oil rigsBHI, -1.56% rose 21 to 652 rigs last week—suggesting the likelihood of a rise in domestic production to come.
“With U.S. stockpiles at record levels and new rigs being added every week this year except one, OPEC’s cuts would need to offset this growth as well as further reduce global supply to have the impact on price they are looking for,” said Chiorando
