• 4 minutes China goes against US natural gas
  • 12 minutes WTI @ 67.50, charts show $62.50 next
  • 15 minutes Saudi Fund Wants to Take Tesla Private?
  • 1 hour Downloadable 3D Printed Gun Designs, Yay or Nay?
  • 18 mins Peak Oil is Now!
  • 12 hours Rattling With Weapons: Iran Must Develop Military To Guard Against Other Powers
  • 41 mins Russians hacking vs U.S., Microsoft President: Russians Targeting All Political Sides
  • 56 mins Corporations Are Buying More Renewables Than Ever
  • 7 hours VW Receives Massive Order Of 1,600 All-Electric Trucks
  • 15 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 19 hours CO2 Emissions Hit 67-Year Low In USA, As Rest-Of-World Rises
  • 22 hours The EU Loses The Principles On Which It Was Built
  • 12 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 22 hours Film on Venezuela's staggering collapse
  • 21 hours Saudi PIF In Talks To Invest In Tesla Rival Lucid
  • 18 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations

Russia Delays Meeting With Oil Producers On Cuts

Alexander Novak

The meeting between Russia’s largest oil producers and the energy commission, expected to discuss the implementation of the 300,000-bpd production cut on December 19, has been postponed, Reuters reported on Monday, quoting an industry source.

The meeting was expected to be chaired by Russian President Vladimir Putin, and the reason for the postponement is not yet clear.

Rosneft’s chief executive and close Putin ally, Igor Sechin, serves as secretary at that energy commission. Sechin is known for his anti-OPEC position and has claimed that the cartel has lost its influence over global oil after the U.S. shale revolution.

Russia and 10 other non-OPEC producers agreed on Saturday to cut total oil production by 558,000 bpd as part of a wider deal with OPEC, but the details as to how Russia is going to execute such a cut have not yet been hammered out.

Russia has been pledging 300,000 bpd since OPEC-only nations agreed to curtail output by 1.2 million bpd. The Russian energy ministry had first said that it would announce a production-cut schedule for its oil companies after this weekend’s meeting.

Last week, Energy Minister Alexander Novak held a meeting with oil producers, after which Kremlin spokesman Dmitry Peskov said that Russian companies would not receive compensation for the production cuts.

Related: Having Outmaneuvered OPEC, Can Iran Handle Trump?

On Saturday, following the deal between OPEC and non-OPEC producers, Novak said in a statement that as part of the agreement Russia would lower its oil production by 200,000 bpd in the first quarter of 2017. According to Novak, the non-OPEC nations would cut output from October levels.

In order to monitor the compliance with the terms of the deal within Russia, the country would create a monitoring group consisting of representatives of the oil companies, Novak noted.

According to Reuters, Russia’s second-biggest producer Lukoil has said it would be willing to cut output, and Tatneft would be ready to cut its production by 20,000 bpd.

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