Iran, Iraq reluctance emerges as a hurdle to OPEC output deal

http://www.marketwatch.com ^ | Nov 23, 2016 7:41 a.m. ET | By Benoit Faucon -- The Wall Street Journal

[Ernest_at_the_Beach]

Iran and Iraq emerged as major stumbling blocks to an OPEC agreement on reducing crude-oil output, as cartel members gathered ahead of their official meeting to tackle the thorny puzzle of how to share the pain of reducing their production

Officials of the Organization of the Petroleum Exporting Countries who met for midlevel talks aimed at nailing down terms ahead of a formal Nov. 30 meeting made progress by outlining cuts of as much as 4.5% for most countries, and by providing specific targets to each country, people familiar with the matter said.

A cut of 4.5% would reduce OPEC’s output faster than the group envisioned in September when its members agreed in principle to production cuts.

[AU72]

Once Trump gets in to ratchet up our oil spigots we can tell OPEC to pound sand.

[Alberta's Child]

There's not much Trump can do about this. U.S. production has declined because oil prices have come down in recent years. U.S. oil will be even less competitive on the world market as the U.S. dollar strengthens, too.

One of the most important trends in the oil market over the last 25 years has been the growth of production among non-OPEC nations. Non-OPEC countries now make up four of the seven largest oil producers in the world -- including Russia, the U.S., Canada and China.

[gr8eman]

Hopefully, we’ll have so much cheap oil, coal, and gas that the term “OPEC” will be archaic in the next 8 years.

[allendale]

These cash starved countries will cheat on each other before the ink is dry on any OPEC agreement. Face it, There is a worldwide glut of oil due to increased US production and decreased demand due to world wide recession. Almost all OPEC countries desperately need hard currency or their economies will crack and there will be social and political instability. The vile decadent Saudis top the list. When they and the perverse jihadist spawning, Wahhabi they protect and support collapse, the world will be a much better place.

[lacrew]

OPEC reduction = open the valve on wells in North Dakota and Texas. They can’t control the world supply anymore.

[Gen.Blather]

“OPEC reduction = open the valve on wells in North Dakota and Texas. They can’t control the world supply anymore.”

Liberal hysteria about the damage pipelines will do has nothing to do with the environment. It has to do with limiting the United State’s power in the world. More oil, more money, more political power. These groups are funded by foreign interests. The people protesting in the streets are just useful idiots who actually believe they are saving the environment.

Incidentally, the cost difference multiplier between pipelines and rail is 47. It costs 47 times more to ship a barrel by rail.

[lacrew]

“The people protesting in the streets are just useful idiots who actually believe they are saving the environment.”

Around ten years ago, a group wanted to build a new coal power plant in Kansas. It got very political and we were barraged with ads telling us how bad it would be for the environment.

So, who was this ‘green’ group that paid for these ads, and supported the local greenies? Turns out it was OneOk, a large natural gas company from Oklahoma.

[Gen.Blather]

“Around ten years ago, a group wanted to build a new coal power plant in Kansas.”

Tallahassee was going to invest in a coal plant and get a cut-rate for its users. There was a referendum on it. The anticoal hysteria was astonishing. (The scrubbers were half the cost of the plant.) The referendum failed and the stupid people have some of the highest electric rates in the state. (I wouldn’t have been surprised if the protestors doused themselves in gasoline and burned to death to “save the planet”. They probably didn’t because it would make their carbon footprint too large.)