• 15 hours Shell Oil Trading Head Steps Down After 29 Years
  • 19 hours Higher Oil Prices Reduce North American Oil Bankruptcies
  • 21 hours Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 23 hours $1.6 Billion Canadian-US Hydropower Project Approved
  • 1 day Venezuela Officially In Default
  • 1 day Iran Prepares To Export LNG To Boost Trade Relations
  • 1 day Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 1 day Saudi Oil Minister: Markets Will Not Rebalance By March
  • 2 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 2 days Rosneft Announces Completion Of World’s Longest Well
  • 2 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 2 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 2 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 2 days Santos Admits It Rejected $7.2B Takeover Bid
  • 2 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 3 days Africa’s Richest Woman Fired From Sonangol
  • 3 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 3 days Russian Hackers Target British Energy Industry
  • 3 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 3 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 3 days Lower Oil Prices Benefit European Refiners
  • 3 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 4 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 4 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 4 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 4 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 4 days OPEC To Recruit New Members To Fight Market Imbalance
  • 4 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 4 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 5 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 5 days GE Considers Selling Baker Hughes Assets
  • 5 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 5 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 5 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 5 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 5 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 8 days The Oil Rig Drilling 10 Miles Under The Sea
  • 8 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 8 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 8 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Fuel Crisis Hits Kazakhstan Hard

Fuel Crisis Hits Kazakhstan Hard

Amid an ongoing fuel crisis,…

Russian Oil Companies Won’t Receive Compensation For Cut Extension

Moscow

Russia’s oil companies that are taking part in the OPEC-led production cut effort will not receive any compensation for the reduced output, Energy Minister Alexander Novak said. A preliminary agreement for the extension—until end-March 2018—was announced by Novak and his Saudi counterpart, Khalid al-Falih, last week.

Speaking to media, Novak added that the extension does not aim so much to prop up prices as it did to rebalance the market, shrinking the persistent glut. Also, he said, another three to five oil-producing countries may join the international effort. According to Reuters sources, one of these will be Turkmenistan. The Central Asian nation produced, as of December 2016, 245,000 barrels of crude daily.

Novak sounded optimistic about the success of the current production cut agreement: he believes that by July 1, global oil inventories will have fallen by 100-120 million barrels, even though so far in 2017, they have actually increased on the back of higher production from non-OPEC producers as well as output growth in the three exempt OPEC members: Libya, Nigeria, and Iran.

The latest data for OECD from the Oil and Gas Magazine shows that global inventories stood at 5.657 billion barrels of crude at the end of March, slightly down from 5.682 billion barrels at the end of 2016.

Related: OPEC Cuts Move West

The energy minister’s optimism, however, was cautious. Reuters quoted him as saying that the market will not rebalance by the end of this year. This is probably why he sees the nine-month extension as making more sense than another six-month production cut.

OPEC, Russia, and another 10 non-OPEC producers agreed last year to reduce their combined output by 1.8 million barrels daily in a bid, they said, to bring sully and demand closer to equilibrium. The question of oil prices has not been acknowledged as central to the move but is widely seen as the top priority for the participants in the agreement.

By Irina Slav 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