Tag Archives: oil markets

Oil prices rise on OPEC and Russia’s deal to cut production (en/fr)


According to Reuters, the Organization of the Petroleum Exporting Countries (OPEC) said Wednesday that it would cut production by 1.2 million barrels a day from 33.6 million barrels and said it expects producers from outside the group, including Russia, to join with additional cuts totaling 600,000 barrels a day. On Thursday, 12/1, Azerbaijan said it was also willing to engage in talks on cuts while Indonesia suspended its membership. 

Continue reading Oil prices rise on OPEC and Russia’s deal to cut production (en/fr)

Monday 18 April, 2016 Update: Doha Fails To Mend Oil Markets


The key point of disagreement arose between Iran and Saudi Arabia. Riyadh refuses to make any concessions to its regional archrival, who seek to increase their oil output to pre-sanction levels.

According to Global Risk Insights, The Doha failure reflects long-standing disagreements between the two Persian Gulf powers over regional supremacy and conflicts in Syria and Yemen. It also confirms the fact that Opec, and Saudi Arabia, lost their ability to act as a global swing producer, which puts the 56 year old Cartel’s existence and purpose into question.

In practice however, the meeting would not change much in terms of global demand and supply. The participating countries were discussing capping oil production at their current almost record high levels, which still leaves the markets well oversupplied.

Oil prices rose more than 3% today, the 20th of April, after a smaller-than-expected US crude build offset glut worries stirred by the end of a Kuwaiti strike and on speculation that major oil producers were meeting in Russia in May for another attempt at curtailing output.

Moscow, however, denied media reports of such an impending meeting.

crude oil prices 20th april 2016 graph
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Over the weekend, talks in Doha between the world’s largest oil producers ended without an agreement to limit production and supplies. Oil ministers from 16 nations came together in an effort to stabilize the global market. The roadblock in the discussions was Saudi Arabia and other Gulf nations refusal to agree on a deal unless all OPEC members joined in agreement.  The Saudis have stated that they will not restrain production until there are commitments from the other major producing nations. This statement was aimed directly at Iran, which did not attend the meeting and has ruled out limiting its oil production until the levels return to what they had been before Western sanctions were imposed. It is obvious that the chances for a deal have fallen victim to the geopolitical conflict between Saudi Arabia and Iran.

While the Doha talks have failed to bring about a path towards ending…

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Russian Oil Companies Ready To Compete With OPEC, Energy Minister Says// La Russie prête à councourir l’OPEP selon son ministre d’Energie


Russian oil companies are ready to compete with the Organization of the Petroleum Exporting Countries (OPEC) regardless of quotas and redistribution within the oil cartel, Russian Energy Minister Alexander Novak said during an interview with Russia’s Rossiya-24 TV news channel on Friday, TASS News Agency reports.

“OPEC’s self-established quota of 30 million barrels per day (bpd) is fully used by OPEC countries. Subsequently, if a member exceeds its quota, OPEC should redistribute its production among other members,“ Novak told Rossiya-24 TV Channel.

“It’s very important whether OPEC will rebalance or if there will be extra output. There is a lot of uncertainty, but in general we are ready for it. And our oil companies are ready for this competition,” added the minister.

OPEC continues to exceed its own quota of 30 million bpd for the 16th consecutive month trying to protect its share of the world oil market. OPEC’s biggest producer, Saudi Arabia, has been cutting prices to secure new markets like Poland, according to Rosneft CEO Igor Sechin.

The cartel is meeting on December 4 in Vienna to announce its output strategy, but Iranian Oil Minister Bijan Namdar Zanganeh says OPEC is unlikely to cut its output. Brent crude, a global benchmark, has slumped 42 percent over the last 12 months and is trading at $48.38 as of 8:36am GMT on Friday.

Novak, who just returned from a two-day visit to Tehran, also said Iran’s return to the natural gas market won’t affect Russian gas major Gazprom’s position.

“I am sure that the volumes and share Gazprom and Russia hold in Europe, are absolutely competitive. We are unlikely to lose the niche,” he said.

Links:
Saudi Arabia Oil Update 2015: Russia Beats OPEC Giant In Crude Sales To China
No Agreement To Cut Oil Output At Russia’s Meeting With OPEC

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  • Français:

Les compagnies pétrolières russes sont prêts à rivaliser avec l’Organisation des pays exportateurs de pétrole (OPEP), indépendamment des quotas et de la redistribution au sein du cartel pétrolier,le ministre russe de l’énergie Alexander Novak a déclaré lors d’une interview sur Rossiya-24 nouvelles TV, une chaîne en Russie le vendredi 23 Octobre 2015, comme l’agence russe TASS nous reporte.

“Le quota fixé – de 30 millions de barils par jour – est entièrement repris par les pays membres de l’OPEP. Ainsi, si l’un des pays soulève son quota et si OPEP veut garder ce quota les volumes de production devraient être redistribués au sein de l’organisation. Beaucoup dépendra aussi – si l’OPEP redistribue à l’intérieur ou si l’organisation va engager des volumes supplémentaires. Bien qu’il y ait beaucoup d’incertitudes sur ce sujet, nous sommes prêts à cela. Et les compagnies pétrolières russes sont prêtes à concourir “, a ajouté M. Novak.

Les répresentants de l’OPEP et d’autres producteurs de pétrole extérieurs au “cartel” (y compris la Russie) ont tenu une réunion le mercredi dernier, mais ils n’ont pas discuté les restrictions sur la production de pétrole brut ou le réglage d’une fourchette cible de maîtrise pour les prix, un fonctionnaire russe qui a assisté aux discussions a déclaré à l’agence Bloomberg.

Lors de la réunion, les pays de l’OPEP et non-membres ont discuté le risque que les prix bas du pétrole (qu’on observe actuellement aux marchés) devraient réduire les investissements dans de nouveaux gisement et explorations, pourtant ils n’ont pas trouvé un accord sur des mesures concrètes pour stimuler le marché,comme des responsables à la suite des pourparlers ont indiqué aux médias.

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Liens:
Opep et non-Opep n’ont pas parlé d’une baisse de production

EMerging Equity

Russia Oil FlagRussian oil companies are ready to compete with the Organization of the Petroleum Exporting Countries (OPEC) regardless of quotas and redistribution within the oil cartel, Russian Energy Minister Alexander Novak said during an interview with Russia’s Rossiya-24 TV news channel on Friday, TASS News Agency reports.

“The fixed quota — 30 mln barrels per day — is fully taken up by the OPEC member-countries. Thus, if any of the countries raises its quota and in case OPEC wants to keep this quota production volumes should be redistributed within the organization. Much will depend on this as well — whether OPEC will redistribute inside it or whether it will engage additional volumes. Though there’s much uncertainty here in total we’re ready to it. And Russian oil companies are ready to compete,” Novak said.

Officials from OPEC and oil producers outside the cartel (including Russia) held a meeting on Wednesday, but did not discuss the restrictions on crude output…

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