• 3 minutes China's aggression is changing the nature of sovereignty.
  • 8 minutes Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 9 minutes US oil facts
  • 29 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 23 hours Europe gas market -how it started how its going
  • 1 min Amazing!...see article: "Turkmenistan To Close "Gates Of Hell" Gas Fire" by Irina Slav
  • 2 days Russia oil production live month after month starting from November 2021 - official stats from Rosstat agency
  • 2 days Is $100 Crude Bad For US Shale? That's what Oil CEOs Say
  • 15 hours Ukrainian Maidan after 8 years
  • 2 days Nuclear power in Russia
Oil Demand Strength Exceeds IEA Expectations

Oil Demand Strength Exceeds IEA Expectations

Global oil demand has proven…

China's Attempt To Kill The Oil Rally Is Bound To Fail

China's Attempt To Kill The Oil Rally Is Bound To Fail

A combination of bullish factors…

Russia Will Not Compensate Its Oil Firms For Production Cuts

Russian oil companies will not receive compensation for the production cuts that Russia has pledged to implement as part of a deal with OPEC producers to reduce global oil supply, Russia’s TASS news agency reported on Wednesday, quoting Kremlin spokesman Dmitry Peskov.

“The issue of any compensation has not been raised,” Peskov commented on the meeting which Energy Minister Alexander Novak held with major domestic oil producers earlier today.

“On the whole the oil price hike as a result of assumed measures, a $5 increase brings certain extra yields both to the country’s budget and to oil companies themselves,” TASS quoted Peskov as saying.

In addition, Putin has “personally agreed the issue of production cap with all leading oil companies,” Peskov noted.

OPEC said last week it had reached a deal to cut the cartel’s production to 32.5 million bpd, by around 1.2 million bpd from October levels, but made it contingent on the willingness of non-OPEC nations – including Russia – to shed another 600,000 bpd from total production.

A day after the deal was reached, Novak said that all Russian oil companies are on board with the 300,000-bpd cut agreed by Moscow. The Russian-language website of the Russian energy ministry features a quote by Novak that says that Russia would gradually reduce output in the first half of 2017 by up to 300,000 bpd.

Related: Venezuela’s Maduro Praises The OPEC Deal, But How Good Is It Really?

Meanwhile, Venezuela’s Oil Minister Eulogio del Pino told TASS news agency on Wednesday that OPEC and Russia have agreed a mutually acceptable deal on how to cap production for six months. According to Del Pino, the oil market will stabilize in 6 to 9 months after the production cap accord that is expected to be signed on December 10 in Vienna.

After today’s meeting between Novak and large oil companies, Lukoil’s CEO Vagit Alekperov said that the ministry had not set recommendations on output quotas to Russian oil producers, according to Reuters. The ministry would comment on the meeting with oil producers later, according to Novatek CEO Leonid Mikhelson.

Last week, Lukoil’s vice president Leonid Fedun said in an interview with a Russian TV that Lukoil was expecting the government to issue a decree on production cuts with tasks for each company and probably offer some compensatory mechanisms for lower output. Fedun added that Lukoil hoped there would be some sort of compensation.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News