Skip to content
  • Looking for Parts? Visit Trane Supply
  • Education Plattform

Select Your Language

Selecting a language changes the language and content on the Trane site.

  • United States English
  • Canada English
  • Argentina Spanish
  • Mexico Spanish
  • Brazil Portuguese Spanish
  • Aruba English
  • Bahamas English
  • Belize English
  • Bermuda English
  • Bolivia Spanish
  • Bonaire English
  • Cayman Islands English
  • Chile Spanish
  • Colombia Spanish
  • Costa Rica Spanish
  • Curacao English
  • Dominican Republic Spanish
  • Ecuador Spanish
  • El Salvador Spanish
  • Grenada English
  • Guadeloupe English
  • Guatemala Spanish
  • Guyana English
  • Haiti English
  • Jamaica English
  • Martinique English
  • Netherland Antilles English
  • Nicaragua Spanish
  • Panama Spanish
  • Paraguay Spanish
  • Peru Spanish
  • Puerto Rico Spanish
  • Saint Lucia English
  • St. Vincent & Grenadines English
  • Suriname English
  • Trinidad & Tobago English
  • Venezuela Spanish
  • Armenia English
  • Austria German
  • Belarus Russian
  • Belgium English
  • Croatia English
  • Czech Republic Czech
  • Denmark English
  • Estonia English
  • Finland English
  • France French
  • Georgia English
  • Germany German
  • Greece Greek
  • Hungary Hungarian
  • Israel English
  • Ireland English
  • Italy Italian
  • Kazakhstan Russian
  • Latvia English
  • Lithuania English
  • The Netherlands Dutch
  • Norway English
  • Poland English
  • Portugal Portuguese
  • Romania English
  • Russia Russian
  • Serbia Russian
  • Slovakia Czech
  • Slovenia English
  • Spain Spanish
  • Sweden English
  • Switzerland French German Italian
  • Turkey Turkish
  • Ukraine English
  • United Kingdom English
  • Azerbaijan Русский
  • Tajikistan Русский
  • Uzbekistan Русский
  • Turkmenistan Русский
  • United Arab Emirates English Arabic
  • Qatar English
  • Kuwait English
  • Egypt English
  • Lebanon English Arabic French
  • Iraq English
  • Jordan English
  • Mainland of China 选择语言
  • Korea, Republic of (South Korea) Korean
  • Vietnam Vietnamese
  • India English
  • Australia English
  • Japan Japanese
  • Guam English
  • Thailand Thai
  • Taiwan Traditional Chinese
  • Hong Kong SAR English
  • Indonesia English
  • Malaysia English
  • Philippines English
  • Singapore English
  • New Zealand English
  • Services
    • Services
    • Energy & Sustainability
      • Energy & Sustainability
      • Energy Monitoring & Analysis
      • Energy Supply
      • Active Energy Management
      • Renewable Energy & Distributed Energy Resources
      • Energy Conservation Measures (energy efficiency)
    • Operate, Maintain & Repair
      • Operate, Maintain & Repair
      • Connectivity & Cloud Services
      • HVAC System Management
      • HVAC System Repair
      • Rental
    • Upgrade & Modernize
      • Upgrade & Modernize
      • Building Systems
      • HVAC System Retrofits
      • HVAC Equipment Upgrades
      • Financing & Energy Services Contracting
      • Indoor Air Quality Assessment
      • Ready for now
  • Products
    • Products
    • VRF & Ductless Solutions
      • VRF & Ductless Solutions
      • N-Gen CITY MULTI VRF
      • P Series
      • Nv Series
      • VRF System Design
    • Chillers
      • Chillers
      • Water-Cooled Chillers
      • Air-Cooled Chillers
      • Cold Gen Scroll Chillers
    • Packaged Units & Split Systems
      • Packaged Units & Split Systems
      • Rooftop Units
      • Split Systems
      • Self-Contained Units
      • Water Source Heat Pumps
      • Dedicated Outdoor Air Units
    • Energy Management & Controls
      • Energy Management & Controls
      • Building Management Systems
      • Building Automation Systems
      • Trane® Air-Fi™ Wireless Systems
      • Controllers
      • Thermostats
      • Accessories
    • Air Handling
      • Air Handling
      • Terminals
      • Sensible-Cooling Terminal Unit
      • VAV (Variable Air Volume) Units
      • Performance Air Handlers
      • Air Handling Accessories & Controls
    • Energy Storage
      • Energy Storage
      • Energy Storage Systems
    • Precision Cooling
      • Precision Cooling
      • Precision Cooling
    • Residential Units
  • Industries
    • Industries
    • Higher Education
    • Indoor Agriculture
    • K-12
    • Data Centers
    • Restaurants
    • Commercial Real Estate
    • Healthcare
    • Local Government
    • Hospitality
      • Hospitality
    • Industrial
  • About
    • About
    • About Us
    • Contact Us
    • Customer Stories
    • Looking for Parts? Visit Trane Supply
    • Education Plattform
    • North America
      • North America

      • United States English
      • Canada English
    • Latin America
      • Latin America

      • Argentina Spanish
      • Mexico Spanish
      • Brazil Portuguese Spanish
      • Aruba English
      • Bahamas English
      • Belize English
      • Bermuda English
      • Bolivia Spanish
      • Bonaire English
      • Cayman Islands English
      • Chile Spanish
      • Colombia Spanish
      • Costa Rica Spanish
      • Curacao English
      • Dominican Republic Spanish
      • Ecuador Spanish
      • El Salvador Spanish
      • Grenada English
      • Guadeloupe English
      • Guatemala Spanish
      • Guyana English
      • Haiti English
      • Jamaica English
      • Martinique English
      • Netherland Antilles English
      • Nicaragua Spanish
      • Panama Spanish
      • Paraguay Spanish
      • Peru Spanish
      • Puerto Rico Spanish
      • Saint Lucia English
      • St. Vincent & Grenadines English
      • Suriname English
      • Trinidad & Tobago English
      • Venezuela Spanish
    • Europe
      • Europe

      • Armenia English
      • Austria German
      • Belarus Russian
      • Belgium English
      • Croatia English
      • Czech Republic Czech
      • Denmark English
      • Estonia English
      • Finland English
      • France French
      • Georgia English
      • Germany German
      • Greece Greek
      • Hungary Hungarian
      • Israel English
      • Ireland English
      • Italy Italian
      • Kazakhstan Russian
      • Latvia English
      • Lithuania English
      • The Netherlands Dutch
      • Norway English
      • Poland English
      • Portugal Portuguese
      • Romania English
      • Russia Russian
      • Serbia Russian
      • Slovakia Czech
      • Slovenia English
      • Spain Spanish
      • Sweden English
      • Switzerland French German Italian
      • Turkey Turkish
      • Ukraine English
      • United Kingdom English
      • Azerbaijan Русский
      • Tajikistan Русский
      • Uzbekistan Русский
      • Turkmenistan Русский
    • Middle East
      • Middle East

      • United Arab Emirates English Arabic
      • Qatar English
      • Kuwait English
      • Egypt English
      • Lebanon English Arabic French
      • Iraq English
      • Jordan English
    • Asia Pacific
      • Asia Pacific

      • Mainland of China 选择语言
      • Korea, Republic of (South Korea) Korean
      • Vietnam Vietnamese
      • India English
      • Australia English
      • Japan Japanese
      • Guam English
      • Thailand Thai
      • Taiwan Traditional Chinese
      • Hong Kong SAR English
      • Indonesia English
      • Malaysia English
      • Philippines English
      • Singapore English
      • New Zealand English
  • Energy & Sustainability
  • Operate, Maintain & Repair
  • Upgrade & Modernize
  • Energy Monitoring & Analysis
    Energy Monitoring & Analysis
  • Energy Supply
    Energy Supply
  • Active Energy Management
    Active Energy Management
  • Renewable Energy & Distributed Energy Resources
    Renewable Energy & Distributed Energy Resources
  • Energy Conservation Measures (energy efficiency)
    Energy Conservation Measures (energy efficiency)
More on Energy & Sustainability
  • Connectivity & Cloud Services
    Connectivity & Cloud Services
  • HVAC System Management
    HVAC System Management
  • HVAC System Repair
    HVAC System Repair
  • Rental
    Rental
More on Operate, Maintain & Repair
  • Building Systems
    Building Systems
  • HVAC System Retrofits
    HVAC System Retrofits
  • HVAC Equipment Upgrades
    HVAC Equipment Upgrades
  • Financing  & Energy Services Contracting
    Financing & Energy Services Contracting
  • Indoor Air Quality Assessment
    Indoor Air Quality Assessment
  • Ready for now.
    Ready for now
More on Upgrade & Modernize
  • VRF & Ductless Solutions
  • Chillers
  • Packaged Units & Split Systems
  • Energy Management & Controls
  • Air Handling
  • Energy Storage
  • Precision Cooling
  • Residential Units
  • N-Gen CITY MULTI VRF
    N-Gen CITY MULTI VRF
  • P Series
    P Series
  • Nv Series
    Nv Series
  • VRF System Design
    VRF System Design
More on VRF & Ductless Solutions
  • Water-Cooled Chillers
    Water-Cooled Chillers
  • Air-Cooled Chillers
    Air-Cooled Chillers
  • Cold Gen Scroll Chiller
    Cold Gen Scroll Chillers
More on Chillers
  • Rooftop Units
    Rooftop Units
  • Split Systems
    Split Systems
  • Self-Contained Units
    Self-Contained Units
  • Water Source Heat Pumps
    Water Source Heat Pumps
  • Dedicated Outdoor Air Units
    Dedicated Outdoor Air Units
More on Packaged Units & Split Systems
  • Building Management Systems
    Building Management Systems
  • Building Automation Systems
    Building Automation Systems
  • Trane® Air-Fi™ Wireless Systems
    Trane® Air-Fi™ Wireless Systems
  • Controllers
    Controllers
  • Thermostats
    Thermostats
  • Accessories
    Accessories
More on Energy Management & Controls
  • Terminal units
    Terminals
  • Sensible-Cooling Terminal Unit
    Sensible-Cooling Terminal Unit
  • VAV Units
    VAV (Variable Air Volume) Units
  • perf-CSAA
    Performance Air Handlers
  • Air Handling Accessories & Controls
    Air Handling Accessories & Controls
More on Air Handling
  • Energy Storage Systems
    Energy Storage Systems
More on Energy Storage
  • Precision Cooling
More on Precision Cooling
Read Customer Story

Creating a comfortable and inviting atmosphere for 1177 West Hastings

Higher Education K-12 Restaurants Healthcare Hospitality Industrial
Indoor Agriculture Data Centers Commercial Real Estate Local Government
Read Blog Post

4 Questions to Determine Your Equipment Upgrade Strategy

About Us Customer Stories
Contact Us

CONTACT A TRANE EXPERT

Puerto Rico Sales & Service Office

Despite Curtailment Compliance, Crude Prices Continue to Struggle

By: Beau Walker

August 11, 2017

crude oil prices

In November 2016, the Organization of the Petroleum Exporting Countries, or OPEC, announced that it would start to curtail its crude oil production in January 2017 for the first time in nine years.  Aimed at lowering global inventory levels and pushing crude pricing above $60 per barrel, the curtailment saw OPEC cut its production levels by 1.2 million barrels per day (MMbpd), or approximately 3.6 percent of OPEC’s November production levels.  Non-OPEC producers led by Russia also agreed to reduce output by up to 0.6 MMbpd.  The cut was originally set for six months (through June 2017) but was extended in late May to last through March 2018 at the same levels.  Initially, the cuts appeared to be working as the price of Brent crude oil, the international benchmark price, surged from a low of $43.58 per barrel in mid-November to $58.37 per barrel on January 3.

Yet, despite a surprisingly high level of compliance for the initial six month period from both OPEC and non-OPEC partners, crude prices couldn’t push any higher than those seen in early January.  So what halted crude’s rally?  Let’s start with what has occurred in the United States.  While OPEC and non-OPEC producers were lowering production, U.S. crude output has been growing.  On January 6, U.S. production was 8.95 MMbpd.  As of July 28, crude production had risen to 9.43 MMbpd, nearly 0.5 MMbpd of growth since the beginning of 2017.  Going back to the last week of July 2016, crude production was 8.46 MMbpd, almost 1.0 MMbpd lower than current levels.

In addition to rising production, U.S. crude oil drilling activity, which can be seen as a measure of potential production growth in the coming 6-12 months, has been steadily increasing.  Since bottoming out at 316 crude-directed rigs in May 2016, the number of rigs has soared to 766 as of July 28.  Due to the nature of the drilling cycle, the addition of rigs doesn’t immediately equate to new production, but it does point toward continued growth in the coming months.  Advancements in technology and improved efficiencies have allowed producers to reduce their well-completion times and remain profitable at lower and lower crude prices.  In short, unless prices fall back to early 2016 levels, ongoing growth in U.S. crude production is likely.

OPEC, after curtailing as much as 1.28 MMbpd in May, only cut 1.1 MMbpd of production in June.   Non-OPEC compliance continues to rise, but analysts are still not convinced that the current levels of compliance will remain.  Crude oil is the economic lifeblood of many of the countries that agreed to cut production, and surplus global inventories have allowed some of these nations to reduce output without taking a major financial hit.  But with global inventory levels now falling without prices reaching the desired $60-per-barrel level and U.S. production rising, analysts wonder if high compliance levels can remain.  For example, Iraq, the third largest producer that agreed to a production cut behind Saudi Arabia and Russia, dropped its compliance level to just 28 percent in June.  It had been as high as 86 percent in April.  Kazakhstan is currently producing 145% of it’s agreed upon level while Nigeria and Libya, both OPEC members but exempt from cuts, have increased their production levels, offsetting much of the OPEC and non-OPEC declines.

Crude prices could still rally, however.  A larger-than-expected decline in U.S. stockpiles over the past month coupled with the political crisis in Venezuela has helped push Brent crude back above $50 per barrel, an increase of more than 18 percent from its 2017 low seen in June.  But as U.S. production continues to increase and compliance within OPEC becomes more difficult, global crude prices may struggle to reach the levels that OPEC had hoped for when the initial compliance deal was struck in November 2016.

Looking For Parts?

Visit Trane Supply

For General and Corporate Questions:

Contact Us
  • About Trane
  • Customer Stories
  • Locate a Sales Office
  • Careers
  • Contact Us
  • Environmental Compliance
  • Quality
  • Ethical Business Conduct
  • Supplier Terms
  • Facebook
  • LinkedIn
  • YouTube
  • Instagram

Privacy Policy  |   Terms of Use

Trane Technologies