• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 12 hours Shale Oil Fiasco
  • 5 hours Might be Time for NG Producers to Find New Career
  • 46 mins We're freezing! Isn't it great? The carbon tax must be working!
  • 2 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 4 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 4 hours Indonesia Stands Up to China. Will Japan Help?
  • 1 day Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 1 day Wind Turbine Blades Not Recyclable
  • 4 hours Beijing Must Face Reality That Taiwan is Independent
  • 12 hours US Shale: Technology
  • 1 day Denmark gets 47% of its electricity from wind in 2019
  • 1 day Prototype Haliade X 12MW turbine starts operating in Rotterdam
Alt Text

Asian Oil Buyers Unfazed By Iran Crisis

Oil prices rose and fell…

Alt Text

Oil Poised For Steepest Weekly Decline Since July

Oil prices were heading for…

Alt Text

Bad News For Oil: Refinery Profits Are Sliding

Oil prices are falling back…

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