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OPEC Hinting At Oil Production Cutback: Oil Prices Rise

Oil Production Critical to States’ Economy: Offshore and River Worker’s Jobs

Oil prices rose on Monday, reversing earlier losses. This is after sources said OPEC and its partners were considering extending their existing supply deal possibly into next year. This means that production from OPEC producing companies will be limited, by agreement, keeping supplies lower. While bad for gasoline prices, this is good news to the U.S. oil market, including Louisiana, whose job base and tax structure is tied to oil production.,

On Monday, Brent crude was up 34 cents at $49.44 a barrel at 1410 GMT, having recovered from a session low of $48.65. U.S. light crude was up 35 cents at $46.57 a barrel, up from an intraday low of $45.83.

What the rumor is, and according to some sources, including some in OPEC, the group and its non-OPEC partners were considering an extension to the current deal, which comprises an output cut of 1.8 million barrels per day (bpd), for nine months or more. Anytime OPEC countries cut production, or at least agree to limiting production, it is generally a good sign for the U.S. Oil industry.

The efforts of the Organization of the Petroleum Exporting Countries to reduce global oil inventories have been undermined by a surge in U.S. drilling, which has knocked more than 10 percent off the price of oil in the last month. OPEC meets on May 25, when it is expected to discuss prolonging the cuts to the end of 2017, although analysts say a further extension may not be enough. See story here.

Jack-Up Rigs, Semi-Submersible Rigs, drilling ships, supply vessels, deckhands, toolpushers, floorhands, captains, the list is endless for jobs and devices used both inland and offshore to drill for oil in Louisiana.

The injuredGo.com Law Firm wants to help you if you sustain a personal injury offshore or on the river.  Attorney Ed Kramer has over 26 years representing many offshore workers and Jones Act seamen. Call (225) 933-1500 or visit injuredGo.com for a free consultation.