OPEC+ Kingpins Try to Sell Obedience

(The views and opinions expressed in this article are those of the attributed sources and do not necessarily reflect the position of Rigzone or the author.)

Saudi Arabia and Russia, de factor leaders of the OPEC+ alliance of oil-producing countries, have been urging fellow members of the group to comply with agreed-upon output levels for the benefit of oil market stability. How successful the OPEC+ kingpins’ efforts will be should become clearer this week after an OPEC+ panel meets to discuss the matter. In this installment of what to watch in the oil market, two of Rigzone’s regular panelists offer their perspectives on the OPEC+ issue. Keep reading for their insights, along with other views on near-term oil market trends.

Tom McNulty, Houston-based Principal and Energy Practice leader with Valuescope, Inc.: The Saudis and the Russians will continue to cajole all oil-producing countries to keep to the OPEC+ agreement to maintain production levels where they are so that prices do not fall further. They will not succeed.

Tom Seng, Director – School of Energy Economics, Policy and Commerce, University of Tulsa’s Collins College of Business: Will anything of substance come out of OPEC’s Compliance Committee meeting on Monday that would change the global supply/demand balance? Will $40 hold and, if so, could that support level lead to a rally?

Andrew Goldstein, President, Atlas commodities LLC: Consolidation within the oil and gas industry has started, dating back to last year with Occidental’s purchase of Anadarko. More recently the merger of Devon Energy and WPX Energy, and talks of ConocoPhillips’ potential acquisition of Concho Resources, have started the long-anticipated consolidation within the shale patch.

Barani Krishnan, Senior Commodities Analyst, Investing.com: More gross distortions caused by Hurricane Delta, as some of these numbers wash out. (EDITOR’S NOTE: To put Krishnan’s comment into context, read this past Friday’s installment of oil market hits and misses.)

To contact the author, email mveazey@rigzone.com.