• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 2 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 18 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 2 days Indonesia Stands Up to China. Will Japan Help?
  • 1 day US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 15 mins Let’s take a Historical walk around the Rig
  • 17 hours Beijing Must Face Reality That Taiwan is Independent
  • 1 hour Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 2 hours Trump has changed into a World Leader
  • 1 day Might be Time for NG Producers to Find New Career
  • 2 days Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 2 days Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 3 days Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
Alt Text

Germany Looks To Renew Scrapped Bolivian Lithium Deal

A lithium deal between Germany…

Alt Text

Why $40 Oil Is A Real Possibility

Oil prices have fallen significantly…

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

Russia Will Stick To The OPEC Deal

Russia will continue to comply with the OPEC oil production cut deal until the deadline set in the extension agreement last November and even into 2019 if need be, Russia’s Energy Minister Alexander Novak said.

Novak added, however, that Russia is also on board with an earlier end to the deal, should its partners decide it was the best course of action to follow.

In an interview with Bloomberg, the official also reiterated that the best approach to ending the deal would be a gradual withdrawal, which could begin in the second half of this year, so discussions of the exit strategy of the partners in the deal could take place at their meeting in June.

For the umpteenth time, Novak said he was not bothered by the growing shale oil production in the United States, or the increasingly likely possibility that the United States would become the largest oil producer in the world, overtaking Russia.

Novak’s remarks come amid growing doubts that OPEC will have the patience to see the deal through its original end in December this year. With U.S. production consistently rising and predictions that it will hit 11 million bpd before the year’s end, it must be hard for rival producers to see a growing portion of this production go into markets where they hold a significant share.

Related: Heavy Sweet Crude Is Heading For A Supply Crisis

Yet some short-term analyses see a possibility that the oil market could slip into a deficit despite the growing U.S. production. Notably, the International Energy Agency said in its latest monthly report on oil that Venezuela’s production decline rate could accelerate this year and “without any compensatory change from other producers it is possible that the Latin American country could be the final element that tips the market decisively into deficit.”

This should be good news for OPEC and its partners in the deal, or maybe a mixed blessing as prices would certainly jump and boost U.S drillers’ motivation to continue expanding production. On the other hand, higher oil prices would help smooth out the exit strategy of the pact.

By Irina Slav 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