• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 32 mins The Political Debacle: Brexit delayed
  • 2 hours Tidal Power Closer to Commercialisation
  • 16 mins New Rebate For EVs in Canada
  • 11 hours Oil-sands recovery by solvents has started on a trial basis; first loads now shipped.
  • 21 mins No Mercy: EU Fines Google $1.7 billion For Abusing Online Ads Market
  • 7 hours US-backed coup in Venezuela not so smooth
  • 4 hours Solar to Become World's Largest Power Source by 2050
  • 5 hours Read: OPEC THREATENED TO KILL US SHALE
  • 3 hours Will Trump Cave Again
  • 15 hours Biomass, Ethanol No Longer Green
  • 14 hours Malaysia Oil & Gas Updates
  • 10 hours Oil stocks are heating up again! What's on your Watchlist?
Alt Text

IEA Warns Of Looming Oil Market Deficit

The IEA has said that…

Alt Text

Big Oil Is Backing Methane Regulation

The oil industry appears to…

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

Trending Discussions

Russia Gets $41.5 Billion Boost From OPEC Deal

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:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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