• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 1 hour China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 3 hours It's Not the Job of the Government to Dictate Where Businesses Should Go
  • 13 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 3 hours Offshore subsea sub 50$/bbl : Rystad Energy: High stakes in store for subsea markets if oil falls to $50/bbl
  • 34 mins Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 54 mins US Shale Economic Impact: GDP gain realized in shale boom’s first 10 years
  • 1 day Iran Is Winning Big In The Middle East
  • 1 day IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 22 hours Strong, the Strongest: Audi To Join Mercedes, BMW Development Alliance
  • 23 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 7 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 7 hours TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 9 hours US to Drown the World in Oil
Tanker Turmoil And Drone Attacks Barely Move Oil

Tanker Turmoil And Drone Attacks Barely Move Oil

This weekend’s drone attacks on…

The Number One Gold Stock Of 2019

The Number One Gold Stock Of 2019

Gold prices are soaring amid…

Russia’s Rosneft Says Oil Production Cuts May Not Be Extended

Oil

Russia’s oil giant Rosneft sees a lack of will among the main signatories to the OPEC/non-OPEC deal and U.S. shale production as the main risks to a possible extension of the global supply cut deal, a Rosneft spokesman told Reuters on Monday.

We think that in the long term global oil demand dynamics and reduced investment during the period of ultra low prices will balance the market, but that the risk of a price war resuming remains,” the spokesman said.

OPEC and 11 non-OPEC producers agreed in November to curtail their collective crude oil output by almost 1.8 million bpd between January and June, with OPEC shaving off around 1.2 million bpd, and non-OPEC producers – led by Russia – slashing another 558,000 bpd.

The deal had held prices above $50 per barrel before WTI fell to below $50 a barrel last week for the first time since December. This drop has further increased speculation whether the deal should or would be extended beyond its original expiry date at end-June, given the rise in U.S. shale.

Although OPEC is scheduled to decide on a possible extension in May, estimates and guesses are many, and now Rosneft has expressed its view via emailed answers to questions by Reuters.

Related: Falling Oil Prices Could Upend The OPEC Deal

While Rosneft described the agreement as viable, it believes that the long-term stabilization of prices should involve not only producers, but also key consumers and regulators, which is highly unlikely given the current global political and economic turbulence.

Therefore, there is a risk that the deal will not be extended, due to both the positions of the main participants as well as U.S. shale, which is unlikely to have a great desire to join any production cut agreement in the foreseeable future, Rosneft told Reuters.

Saudi Arabia’s price war failed to result in dramatically boosting its market share because of the efficiency and resilience of the Russian oil industry, the Russian oil giant reckons.

The Saudis will continue to be interested in controlling the price of oil by trying to strike a balanced price that would allow them to increase oil revenues on the one hand, and curtail a significant rise in U.S. shale output on the other hand, Rosneft told Reuters.

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
Download on the App Store Get it on Google Play