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[Vanillalite]

Reuters/CNBC

Oil prices slipped on Tuesday as crude output rose in virtually every major export region despite plans by OPEC and Russia to cut production, triggering fears that a fuel glut that has dogged markets for more than two years might last well into 2017.

Analysts said the boon from last week's Organization of the Petroleum Exporting Countries decision has faded as they now look to factors that may undermine the cartel's promise such as record production, Russia's plans and the reaction of U.S. shale producers.

"Adherence to assigned OPEC quotas is apt to be limited and enforcement of such nearly impossible," Jim Ritterbusch, president of Chicago-based energy advisory firm Ritterbusch & Associates, said in a note.

"With most of the planned reduction falling on the shoulders of the Persian Gulf producers, we look for other OPEC members to virtually ignore assigned quotas," Ritterbusch said.

OPEC's oil output set another record high in November, rising to 34.19 million barrels per day (bpd) from 33.82 million bpd in October, according to a Reuters survey based on shipping data and information from industry sources.

Russia reported average oil production in November of 11.21 million bpd, its highest in nearly 30 years. That means OPEC and Russia alone produced enough to cover almost half of global oil demand, which is just above 95 million bpd.

 

[Tal Shiar Agent]

Good. There is no evidence that low oil prices slow down the wider adoption and innovation in renewables (maybe some slowdown in electric vehicles) and low oil prices deincentivize oil companies from drilling in new locations and destroying and contaminating more land.

 

[LucidMomentum]

Good. There is no evidence that low oil prices slow down the wider adoption and innovation in renewables (maybe some slowdown in electric vehicles) and low oil prices deincentivize oil companies from drilling in new locations and destroying and contaminating more land.

Part of me agrees, but the part of me that works at an oil company as an engineer where the forecast for late 2015 / 2016 was $60 a barrel is looking forward to the reorganization meeting my department is having next week.*

*I'm an EE, but we're shutting in half of our cogeneration facilities next year.