• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 3 hours Joe Biden's Presidency
  • 1 day https://www.prageru.com/video/whats-wrong-with-wind-and-solar/
  • 9 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 1 day Is the Chinese CCP Following the Left's Leadership, or the Left Following the CCP's?
  • 1 day Here it is, the actual Complaint filed by Dominion Voting Machines against Sydney Powell
  • 3 hours An exciting development in EV Aviation: Volocopter
  • 6 hours Did I Miss Something?
  • 3 hours The Debate Starts : Remake Republican Party vs. Third Party
  • 11 hours Minerals, Mining and Industrial Ecology
  • 1 day CNN's Jake Tapper questions double amputee purple heart recipient GOP Rep's commitment to democracy. Tapper is a disgrace.
  • 8 hours A Message from President Donald J. Trump - 5 minutes from The White House directly
  • 1 day 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
  • 2 days Do Republicans like Liz Cheney, Adam Kinzinger, Mitt Romney and now McConnell think voting for Impeachment can save the party ? Without Trump base what is the Republican constituency ? It's over.
Oil Rallies Despite Growing Demand Concerns

Oil Rallies Despite Growing Demand Concerns

Oil prices rebounded on Tuesday…

Russia Says Its Oil Production Will Increase After June

As if already preparing for its exit from the OPEC production cut deal that seeks to drawdown global inventories of crude oil to rebalance the market, Russian Energy Minister Alexander Novak vowed on Thursday to increase its oil output after June, according to Reuters.

Russia’s recent decline of production, according to Novak, was caused by a combination of refinery maintenance and contaminated oil flowing through the Druzhba pipeline—issues that will be resolved after June, coincidentally when the oil production cut deal is set to expire.

Alexander Dyukov, CEO of Gazprom Neft, said that the contamination issue had not affected oil output at all. “It hasn’t affected the company’s oil output at all. We simply sent the oil through other routes,” according to Reuters.

Novak had a different take on why its output had fallen below the level agreed to with OPEC, “Partly, this is due to the restoration of (oil) quality in the pipeline.”

Russia’s largest oil producer, Rosneft, is in talks with the government for possible compensation for losses should OPEC and its allies decide in June to extend the output cuts according to Sechin. Sechin has been critical of the deal that Russia forged with its OPEC counterpart.

It is no secret that when it comes to breakeven prices, Russia is positioned differently than OPEC’s de facto leader, Saudi Arabia, and as such, Russia doesn’t require as high of a breakeven in order to keep its budget. Russia has crafted its budget based on oil at $40 per barrel. Saudi Arabia, on the other hand, has a budget based on oil at $85 per barrel.

OPEC and Russia are set to meet to review the progress of the production cut deal and the state of the market on June 25-26.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Tripp Mills on June 07 2019 said:
    More stolen dividends and of course my brokerage artificially holding the market (more stolen cash everyone today) has not let me buy for months and i'm fixing it ASAP!
  • Tripp Mills on June 07 2019 said:
    is Russia trying to suck OPEC and Saudi dry? "Russia Says" or is this some trader who shorted tyring to drive the price down there by causing economic harm to investors and allies - Kick Russia out Saudi when they do this stuff - Saudi - KICK THEM OUT! You all were kind to let them into OPEC plus and LOOK HOW THEY ARE! Also, i'd like to alert everyone - a brokerage is holding back the market - last update I have is 9:38am and they have done it all week!
  • Jan Stevens on June 07 2019 said:
    Why is a drawdown in inventories always described as an attempt to "rebalance the market", rather than an attempt to limit supply to increase prices. Seems like a rather blatant spin.

Leave a comment

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