• 4 minutes China - EU: Xi Says Cooperation Is Mainstream In Their Ties
  • 8 minutes The Mining Industry Has Had It Easy For Far Too Long
  • 11 minutes Lawsuit-Happy Councilor Wants to Take Big Oil to Court
  • 15 minutes U.S. Shale Output may Start Dropping Next Year
  • 3 hours Dutch Populists Shock the EU with Election Victory
  • 2 hours Venezuela Says Russian Troops Land to Service Military Equipment
  • 6 hours Trump to Make Allies Pay More to Host US Bases
  • 3 hours Mexico Demands Spain and the Vatican Apologize to Indigenous People for the Spanish Conquest
  • 53 mins Multi-well Pad Drilling Cost Question
  • 2 hours Public Companies that attended OPEC "THREAT DINNER" at CERRAWEEK must disclose any risks in their SEC Financial filings.
  • 4 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 24 hours U.S.-China Trade War Poses Biggest Risk To Global Stability
  • 1 hour England Running Out of Water?
  • 6 hours Read: OPEC THREATENED TO KILL US SHALE
  • 2 days One Last Warning For The U.S. Shale Patch
  • 1 day European Parliament demands Nord-Stream-ii pipeline to be Stopped
  • 2 days Climate change's fingerprints are on U.S. Midwest floods
China Can’t Get Enough Of This Discounted Oil

China Can’t Get Enough Of This Discounted Oil

China is taking advantage of…

Israel And Egypt Compete To Become New Energy Hub

Israel And Egypt Compete To Become New Energy Hub

With the recent giant discoveries…

Russia Signals Weighing Extension Of Oil Output Cuts

Oil Barrels

Russia’s Energy Ministry will soon begin talking with domestic oil companies about the option to extend the production cuts beyond June, Energy Minister Alexander Novak said on Tuesday, while Moscow-based analysts largely expect Russia to continue participating in the output cuts that it had agreed to with OPEC.

Speaking to reporters on Tuesday, Novak said that it was still too early to tell if the OPEC/non-OPEC deal should be extended, TASS news agency reports.

However, Russia will be talking soon to its oil companies and to other countries regarding the extension. The decision whether to extend the period of the cuts will depend on what the inventory situation in April will be, and what the forecasts for May and June will be, TASS quoted Novak as saying.

Russia – which has so far cut more than 200,000 bpd out of the promised 300,000-bpd gradual cut – will have reduced its output by 250,000 bpd by mid-April, Novak noted.

A possible extension of the deal is rallying more support, all the more so that oil prices have not jumped considerably, and swelled global inventories have not been drawing down as fast as it had been expected.

According to analysts polled by TASS, Russia is expected to continue taking part in the output cuts, should OPEC decide to extend the deal until the end of the year.

Related: Venezuela Is The Wild Card In The OPEC Deal Extension

If the agreement is not renewed in any way, oil prices will most likely go down because we will concurrently have production growth in the United States, in OPEC countries, mainly in Saudi Arabia, and production growth in Russia,” Andrei Polischuk, an analyst at Raiffeisenbank, told TASS.

According to analysts, if Russia refuses to join a possible extension, Saudi Arabia will not be willing to take all the burden and “maintain prices at its expense only”.

Experts reckon that oil prices may fall to $40 or even $30 per barrel if the deal is not extended.

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