• 7 minutes Does S Arabia Have 2 Mln Barrels in Spare Capacity?
  • 11 minutes Oil prices going down
  • 19 minutes Venezuela, the largest oil reserve in the world, faces deep shortages of motor oil
  • 8 mins 67.50 was the low for now, $70 - $76+ back in play
  • 23 hours EU And Japan Sign Historic Free Trade Deal
  • 16 hours Chile Becomes The Latest Country To Commit To 100% Renewables
  • 3 hours Daimler and BMW Will Beat Tesla in EV Race
  • 22 hours Where 3 Million Electric Vehicle Batteries Will Go When They Retire?
  • 1 min Google, Hit With Record $5 billion EU Antitrust fine, To Appeal
  • 1 day Germany: We Can No Longer Fully Rely On U.S. White House
  • 2 days Well from $74 we hit 67.xx now what?
  • 23 hours China’s Technology Sector Takes On Silicon Valley
  • 1 day Chartist predicting a $1 fall, after WTI drops $10
  • 2 days Trade War of 1930s, Extended the Great Depression
  • 1 day Trump-Putin Helsinki Summit And Oil Prices
  • 2 days Rio Tinto Says $4-Million Goodbye to Coal
  • 2 days Total Trade War: U.S. Threatens Tariffs On $200 BN of China Goods
Alt Text

Saudi Arabia's Solution To Rising U.S. Gas Prices

The first U.S.-bound gasoline cargo…

Alt Text

The Permian Banks On These Key Pipelines

Analysts believe that the WTI…

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

Saudi/Russia-Led Oil Supergroup In The Making

OPEC oil production

OPEC and the non-OPEC producers’ part of the production cuts deal will have a plan for long-term cooperation drafted by the end of 2018, as they seek to institutionalize their current collaboration into a supergroup of oil producers led by Saudi Arabia and Russia, the UAE’s Energy Minister Suhail Al Mazrouei told The National in an interview published on Thursday.

The producers aim “together with the secretary general [of OPEC, Mohammad Barkindo], to put together a draft agreement for this group [of 24] to stay together for a longer time”, Al Mazrouei said.

Putting together a draft charter and discussing it during the year is one of the UAE’s aspirations, said the minister whose country is currently holding OPEC’s presidency.

“If we achieve the market balance, I think we can see significant amount of investments coming to the E&P business and we can see that many of the 24 countries who have signed the Declaration of Cooperation can benefit from it,” Al Mazrouei told The National.

The idea to follow up on the current OPEC/non-OPEC cooperation came originally from OPEC’s Secretary General Mohammad Barkindo, who said as early as in October last year that the partnership could be institutionalized.

Last month, Khalid al-Falih, the energy minister of OPEC’s de facto leader and largest producer Saudi Arabia, said that “There is a readiness to continue cooperation beyond 2018...The mechanism hasn’t been determined yet, but there is a consensus to continue.”

Al-Falih, as well as Russia’s Energy Minister Alexander Novak, has hinted several times that the cooperation could continue in some form—although not necessarily in oil market management—even after the end of 2018, when the current pact to curtail oil production expires.

In an interview with S&P Global Platts published earlier this week, Novak said that Russia wanted to build a long-term relationship with Saudi Arabia and the broad OPEC alliance once their agreement expires.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Mamdouh G Salameh on February 15 2018 said:
    This gives the lie to those who have been talking about Russia wanting to quit the OPEC/non-OPEC production cut agreement. As I have been saying, the agreement will continue beyond 2018 but in a format which will reflect the changing market conditions such as a re-balanced global oil market and higher oil prices.

    It makes a lot of sense for Russia to have a permanent arrangement with OPEC for the purpose of stabilizing the oil prices well into the future. Saudi Arabia and Russia who between them account for 26% of global oil production and 25% of oil exports are already cementing their strategic partnership with Russia hoping to invest in Saudi Aramco's projects and Saudi Arabia investing in gas production projects in the Russian sector of the Arctic.

    All in all, it amounts to Russia being invited to become a member of OPEC.

    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