• 2 days Court rules DOE to implement Obama efficiency rules
  • 20 hours DOA to invest $6.5M in coal industry
  • 20 hours US to hold largest oil and gas lease sale in its history
  • 2 days Tillerson Seeks A Deal With Erdogan On Syria
  • 2 days White House considering steel and aluminum tariffs
  • 3 days Iraq Seeks $100 Bln to Rebuild Economy
  • 3 days Allegedly the Search For Aliens is Struggling Thanks to Cryptocurrency Mania
  • 19 hours New Rules to Phase Out Coal and Reduce Natural Gas in Canada
  • 2 days Amazon reaches $1.2 million settlement with EPA over illegal pesticide sales
  • 20 hours White House Not Even Close to Regulating Bitcoin Yet
  • 2 days U.S. Bancorp hit with $613M in penalties
  • 20 hours Experts said US losing ground to China on AI
  • 3 days Australia's solar power boom to double in a year
  • 3 days US intelligence warn against Chinese phones
  • 3 days Electric Buses to Reach Half of World Fleet by 2025
  • 3 days How Good Is Putin's Word?
Alt Text

Dollar Remains Strong In Spite Of Petro-Yuan Threat

As China’s much-delayed oil futures…

Alt Text

BP Has Its Most Successful Year This Decade

Higher oil prices and increased…

Alt Text

Is This The End Of The Oil Rally?

The crash in financial markets…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Russia Gets $41.5 Billion Boost From OPEC Deal

oil industry

Since the start of the OPEC-Russia production cut deal, Russia’s oil companies and government have received the equivalent of around US$41.5 billion more in proceeds, thanks to the higher oil prices, Russian Energy Minister Alexander Novak said on Tuesday.

Due to the higher oil prices as a result of the pact, Russia’s federal budget has received so far US$29.41 billion (1.7 trillion rubles) more, while the oil companies—a combined US$12.11 billion (700 billion rubles) more since the beginning of 2017, Novak said.

The higher revenues are the result of the $15-$20 increase in oil prices, compared to the price of oil before the deal between OPEC and a dozen non-OPEC nations led by Russia was signed, the minister said.

Russia is cutting 300,000 bpd as part of the pact with OPEC, and although there have been voices and speculation that some Russian companies are unhappy with the agreement that hampers their production expansion plans, Moscow has been keeping its end of the deal so far.

Russia’s crude oil production in January was basically flat compared to December 2017, after rising production at foreign firm-led projects compensated for small declines at the two major Russian oil producers, Rosneft and Lukoil. Related: Oil Majors Optimistic Despite Price Plunge

The oil price rally earlier this year has posed caused many to wonder whether Russia and/or some OPEC members could ditch the deal because they wouldn’t want oil prices too high—a scenario that could incentivize U.S. shale production too much.

U.S. production is beating previous growth expectations, while minister Novak said in an interview with Russian news agency Interfax published on Monday that the goal of the OPEC-Russia deal in bringing the oil market back to balance had been two-thirds achieved.

Asked how the cartel and allies will exit the deal, Novak said that it should be gradual and will likely take several months—between two and five months—to avoid a sharp increase in production that could again result in oversupply.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News