NEWS
Oil  

Russia Signals OPEC, Allies Should Raise Output

One of the key Russian officials to foster a supply pact with OPEC, Kirill Dmitriev, signaled on Monday Russia wanted to raise oil output when it meets with OPEC in June because of improving market conditions and falling stockpiles.

Dmitriev, head of the Russian state’s direct investment fund, was the first Russian official to predict a deal with OPEC in 2016 and since then became a key defender of the pact despite pressure from domestic oil firms to drop the agreement, Reuters reported. 

Dmitriev, an envoy for Moscow in the Middle East in general and Saudi Arabia in particular, had in recent months said it was still too early to terminate output cuts, echoing the position of OPEC’s de-facto leader, Saudi Arabia. 

But in an apparent change of position, Dmitriev said on Monday supply cuts may not be required after June. 

“It is quite possible that given the improving market situation and falling stocks, OPEC and its allies could decide in June this year to abandon supply cuts and subsequently increase output,” he added. 

“This decision will not mean the end of the deal but a confirmation that participants continue their coordinating efforts when it is important not only to cut but to increase output depending on market conditions,” he said.

Key Meeting 

The Saudi energy minister, Khalid al-Falih, said on Monday it was premature to say whether a consensus existed among OPEC and its allies to extend oil supply cuts, but a meeting next month would be key. 

A joint OPEC and non-OPEC ministerial committee known as the JMMC is due to meet in May. Saudi Arabia and Russia are members of the panel, which includes other major oil producers that took part in a global supply-cutting agreement last year, such as Iraq, the United Arab Emirates, Kuwait, Nigeria and Kazakhstan. 

“JMMC will be a key decision point because we will certainly by then know where the consensus view is and, more importantly, before we ask for consensus, we will know where the fundamentals are pointing,” al-Falih, said.

News No: 4271
Date: 2019/04/09 - 14:15
News Source: Financial Tribune

Russia  OPEC  Kirill Dmitriev  Saudi Arabia  Middle East 

Comments:

Leave a Comment:

   
   
   
 

US Buying More Russia Oil

The United States is increasing its oil imports from Russia, according to a Bloomberg source, as US refineries clamor for more oil now that refineries oil supplies have dried up.
 

Oil Up on Escalating Tensions

Oil prices rose on Tuesday on escalating US-Iran tensions and amid expectations that producer club OPEC will continue to withhold supply this year.
 

Minister Says Russia Open to Relaxing OPEC+ Cuts

From easing the limits to ending the extreme throttling-back that has seen some countries exceed original cutback targets, Russia sees a range of options that would allow OPEC+ to continue output cooperation until the yearend.
 

Iran to Offer Petrochemical Products, 10,000T Naphtha on Energy Bourse

Iran is due to offer 10,000 tons of light naphtha, 2,000 tons of heavy naphtha and large cargoes of petrochemical products to domestic buyers through its energy bourse on Sunday, in a direct sale to bypass the US unilateral sanctions.
 

Russia Cuts Oil Production Below OPEC+ Cap

Amonth before OPEC and allies are set to discuss the future of their production cut deal, the leader of the non-OPEC group, Russia, appears to have finally fallen in line with its share of the cuts, producing below its OPEC+ quota for the month of May.
 

Total Declares Force Majeure on German Refinery

France’s Total has halted some of the units at its 230,000-barrel-per-day Leuna refinery in Germany to conduct technical checks after contaminated Russian crude oil was found to have flown via an oil pipeline from Russia to European customers.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners