• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 57 mins Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 7 hours China's Blueprint For Global Power
  • 2 hours IMO 2020:
  • 4 hours World Stocks Drop And Futures Tread Water After China Reports Worst GDP Growth In 30 Years
  • 8 hours Why did Aramco Delay IPO again ? It's Not Always What It Seems.
  • 12 hours National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 12 hours ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 12 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 5 hours Deepwater GOM Project Claims Industry First
  • 13 hours PETROLEUM for humanity 
  • 12 hours Idiotic Environmental Predictions
  • 6 hours Brexit agreement
Alt Text

Oil Prices Tank On Global Recession Fears

Oil prices fell once again,…

Alt Text

Trump’s Latest Trade War Move Sends Oil Tanking

Oil markets reacted today to…

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 Ups Oil Price Forecast For 2018

Russia’s Economy Ministry will increase its forecast for the price of the country’s Urals oil blend for 2018, following the extension of the OPEC/non-OPEC production cut agreement extension, announced yesterday in Vienna.

Economy Minister Maxim Oreshkin said the new price level the ministry will work with will be above US$50. Previously, it was US$43.80 a barrel. Oreshkin recently warned the production cut agreement was harmful for the Russian economy as it discouraged oil companies from making new investments.

Yesterday, OPEC and its partners from the Vienna Club, which last year agreed to reduce crude oil production by a combined 1.8 million bpd to relieve the global supply glut and improve prices, extended the cuts until the end of next year, with a review of the latest deal planned for June 2018.

The decision was expected, despite some last-minute worry that Russia might be reluctant to sign up for a nine-month extension, and prices did not change in any significant way. In fact, Russia kind of got what it wanted: a six-month extension, seeing as the new deal will officially start in January, as per the agreement.

According to observers, this targeted a psychological effect: a 12-month extension sounds longer than a nine-month one, if it was counted from March 2018, when the first extension agreed earlier this year was set to expire. Related: BREAKING: OPEC Agrees To 9-Month Extension Of Oil Production Deal

Yet there are already differences of opinion between the leaders of the Vienna Club pack: Russia’s Alexander Novak said the biggest question to answer now was how the deal would be unwound once global supply balance was restored. "It's clear that in any event, this process will not go on forever and that at some time it will all come to an end. Therefore, we need to prepare ourselves for this. Today, we understand that we need to see this process to its conclusion," he said as quoted by CNBC earlier today.

However, Saudi Arabia’s Khalid al-Falih seems carefree when it comes to the unwinding bit. "It’s way premature to design the exit strategy," he said, as quoted by Bloomberg. "As I mentioned we have upwards of 150 million barrels of inventories to draw."

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