• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 2 hours Shale Oil Fiasco
  • 9 hours USA v China. Which is 'best'?
  • 3 hours Everything you think you know about economics is WRONG!
  • 8 hours Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 4 hours My interview on PDVSA Petrocaribe and corruption
  • 18 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 9 hours Quotes from the Widowmaker
  • 1 day True Confessions of a Billionaire
  • 8 hours Global Debt Worries. How Will This End?
  • 15 hours Petroleum Industry Domain Names
Alt Text

Oil Up On OPEC Optimism

While broader financial markets struggle…

Alt Text

The World’s 10 Biggest Polluters

As carbon dioxide emissions become…

Alt Text

The Next Major Middle East Oil IPO

Oman Oil Company could become…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Putin Determined To Strengthen Ties With OPEC

Russia is in favor of a continued partnership with OPEC that does not need to be limited to oil production control, Russia’s President Vladimir Putin said after the BRICS summit that took place in Brazil this week.

"A constructive dialogue has been established with OPEC. We understand where this tough position [on cutting output] comes from, including the position of our friends in Saudi Arabia on Saudi Aramco IPO," the Russian President said, as quoted by TASS.

"They have their own interests, and we should respect that, which is what we are doing. When it comes to prospects for cooperation, it will not be limited to regulating output."

"The system of relations between Russia, OPEC and non-OPEC countries represents an effective instrument of maintaining the balance on the global energy market that is important for everyone, both consumers and producers," Putin added.

Russia has become instrumental for OPEC’s success in propping up prices by placing caps on production. The world’s second-largest oil producer after the United States had just the right amount of clout and direct influence on oil markets to help quench concerns about an oversupply. In fact, Russia’s role in the cuts led some analysts to argue that it is now the de facto leader of OPEC even if it is not a member and has no plans for membership. Related: Top U.S. Gas Producer Looks To Ditch Major Shale Assets

Russia’s leverage lies in the fact it can function better than OPEC members at lower oil prices. In other words, for Russia, the production cuts are not a question of life and budget deficit. Yet by joining OPEC in its production control drive, Moscow has put itself into a position where it can ask for favors in return, notably from Saudi Arabia, which has already pledged sizeable investments in Russian energy projects, including in oil and LNG.

OPEC and Russia are meeting next month to discuss the next steps in their partnership and the production cut agreement.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Mamdouh Salameh on November 15 2019 said:
    President Putin who is the brightest statesman on the international scene today knows how to enhance Russia’s global influence and interests by playing his strategic cards with impeccable timing and shrewdness. His ties with OPEC are no exception.

    Russia’s alliance with Saudi Arabia and its cooperation with OPEC in support of oil prices are enabling Russia to have a very influential impact on the global oil market and also on OPEC’s oil policies.

    Russia’s leverage lies in the fact it can function better than OPEC members at lower oil prices. Russia is an energy superpower capable of living with an oil price of $40 or less whilst compared with OPEC members needing an oil price ranging from $85-$100 a barrel to balance their budgets. Yet by joining OPEC in its production control drive, Moscow has put itself into a position where it can ask for favours in return, notably from Saudi Arabia, which has already pledged sizeable investments in Russian energy projects, including in oil and LNG.

    Last but not least let me correct an inaccuracy in your article. Despite excessive hype by the US Energy Information Administration (EIA) in cahoots with the International Energy Agency (IEA), Rystad Energy and BP Statistical Review of World Energy, the United States is not the world’s largest crude oil producer. Russia is at 11.24 million barrels a day (mbd) in 2019 followed by the US at 11 mbd and not the EIA’s hyped figure of 12.5 mbd.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




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