• 2 days Iraq Begins To Rebuild Largest Refinery
  • 3 days Canadian Producers Struggle To Find Transport Oil Cargo
  • 3 days Venezuela’s PDVSA Makes $539M Interest Payments On Bonds
  • 3 days China's CNPC Considers Taking Over South Pars Gas Field
  • 3 days BP To Invest $200 Million In Solar
  • 3 days Tesla Opens New Showroom In NYC
  • 3 days Petrobras CEO Hints At New Partner In Oil-Rich Campos Basin
  • 3 days Venezuela Sells Oil Refinery Stake To Cuba
  • 3 days Tesla Is “Headed For A Brick Wall”
  • 3 days Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 4 days IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 4 days Goldman Bullish On Oil Markets
  • 4 days OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 4 days Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 4 days Syria Aims To Begin Offshore Gas Exploration In 2019
  • 4 days Australian Watchdog Blocks BP Fuel Station Acquisition
  • 4 days Colombia Boosts Oil & Gas Investment
  • 4 days Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 5 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 5 days Aramco On The Hunt For IPO Global Coordinators
  • 5 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 5 days India Feels the Pinch As Oil Prices Rise
  • 5 days Aramco Announces $40 Billion Investment Program
  • 5 days Top Insurer Axa To Exit Oil Sands
  • 6 days API Reports Huge Crude Draw
  • 6 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 6 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 6 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 6 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 6 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 6 days Exxon To Start Reporting On Climate Change Effect
  • 6 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 7 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 7 days Forties Pipeline Could Remain Shuttered For Weeks
  • 7 days Desjardins Ends Energy Loan Moratorium
  • 7 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 7 days Russia May Turn To Cryptocurrencies For Oil Trade
  • 7 days Iraq-Iran Oil Swap Deal To Run For 1 Year
  • 9 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
  • 10 days Mexico Blames Brazil For Failing Auction

Breaking News:

Iraq Begins To Rebuild Largest Refinery

The Uncertain Future Of Natural Gas

The Uncertain Future Of Natural Gas

Natural gas has played a…

The Best Long-Term Buy In Lithium

The Best Long-Term Buy In Lithium

While well-publicized companies could be…

Gazprom Speaks Out Against OPEC Production Cut Extension

Gazprom

While OPEC is said to be mostly leaning toward a 9-month extension of the production cuts, Russia’s Energy Minister Alexander Novak and major Russian oil companies discussed last week a six-month extension after March 2018, and all but one company said they were ready to extend, Russia’s TASS news agency reported on Tuesday, quoting two sources who had attended the meeting.

A possible six-month extension proposal from Russia is shorter than the market is largely expecting—nine months through the end of 2018. It could also put Russia on a collision course with Saudi Arabia, its key partner in the OPEC/non-OPEC deal to curb production to erase the glut and prop up oil prices.

In early October, Russia’s President Vladimir Putin said that Russia was open to extending the production cut deal, but echoed other officials’ comments at that time that it was too early to decide.

“If we speak about a possible extension, then of course, it should be at least until the end of 2018,” Bloomberg quoted Putin as saying at an energy forum in Russia.

But a month and a half later, with Brent trading above $60 for more than three weeks, there is growing talk and speculation that Russia might walk away from the deal, or try to stall either the taking and/or the announcement of the decision, because it doesn’t see such announcement as urgent as possibly many of OPEC’s producers.

“Extending the deal was discussed. Everyone except Gazprom Neft agreed, because the company will launch new projects in 2018,” one of TASS sources said, adding that Rosneft—the biggest Russian oil producer led by Putin’s close ally Igor Sechin—did not voice disagreement over extending the cuts.

Related: Is The LNG Glut Real?

Last month, a senior Gazprom Neft executive said that the company was ‘holding its nose’ to the production cut deal because it had made the company cut its production growth targets.

Novak is due to meet Russian oil producers again today, and said yesterday that Russia would decide later this month what its position for the Vienna meeting on November 30 would be.

Russian oil firms are said to be balking at a further extension, arguing that their production restrictions are only benefiting others while Russian companies have to cut back from new projects in which they have heavily invested. 

Even though there are consultations with oil companies, Russia’s final decision “will still be made by senior officials” and “it might be completely different”, one of TASS’ sources said.  

Almost all countries part of the deal have expressed readiness to extend the pact, so the only remaining question is when the decision should be taken—at the meeting next week, or at an extraordinary meeting early next year, a TASS source in OPEC said. 

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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