• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 2 hours Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 7 mins Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 2 hours Instagram Now Banning Photos Of People At Gun Ranges, Claiming They Promote "Violence"
  • 14 hours Let's shut down dissent like The Conversation in Australia
  • 8 hours Famous Manufacturer of Anti-Ethanol Additives Proves Ethanol's Safety and Benefits
  • 13 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 20 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 20 hours Hong Kong protesters appeal to Trump for support.
  • 5 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 10 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 10 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 13 hours Iran in the world market
Alt Text

Oil Rises At End Of Wild Week

Following the wildest week oil…

Alt Text

Wealthy Saudis Are Being Bullied Into Buying Aramco

Saudi Arabia is pressuring wealthy…

Alt Text

The Biggest Week In 50 Years For Oil

Oil markets saw the biggest…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

OPEC+ Will Not Be Formalized

OPEC and Russia-led non-OPEC oil producers are highly unlikely to create some kind of a formal joint organization for managing the oil market, due to the additional bureaucracy and to the risk of falling prey to a proposed U.S. legislation that could open the cartel and allies to antitrust lawsuits, Russia’s Energy Minister Alexander Novak said on Thursday.

Although Russia and OPEC have been touting in the past the idea of “institutionalizing” their cooperation in the oil market by forming some kind of organization, Novak said the idea had now been discarded.

“There is a consensus that there will be no such organisation. That’s because it requires additional bureaucratic brouhaha in relation to financing, cartel, with the U.S. side,” Reuters quoted Novak as saying at a briefing with reporters.

It’s not only Russia that has been concerned with the possibility that the U.S. could pass this time around the so-called No Oil Producing and Exporting Cartels (NOPEC) Act that could pave the way to antitrust lawsuits in the U.S. against the cartel and its national oil companies. According to analysts, the NOPEC Act has been a big concern for OPEC members lately.

Forms of antitrust legislation aimed at OPEC were discussed at various times under Presidents George W. Bush and Barack Obama, but they both threatened to veto such legislation. President Donald Trump, however, has been openly critical of OPEC’s market-management efforts over the past year.

Speaking to reporters on Thursday, Russia’s Novak said “I think, non-OPEC (countries) will not agree as they don’t want to be hit by sanctions.”

Related: Looking Back On A Wild Year For Oil Prices

Yet, Novak insists that Russia’s cooperation with OPEC and its largest producer Saudi Arabia will continue, “one way or another”, even without a formal institution or organization.

Referring to the cooperation with OPEC, the Russian energy minister said that “This won’t be an organisation, this is some mechanism of cooperation: to convene, to discuss, adopt some memorandums, joint resolutions.”

Commenting on oil prices, Novak said today that the unpredictability of the U.S. Administration, as well as protectionism and trade wars, have contributed a lot to the oil market volatility over the past two years.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play