• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 19 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days They pay YOU to TAKE Natural Gas
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 4 days What fool thought this was a good idea...
  • 7 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 2 days A question...
  • 13 days The United States produced more crude oil than any nation, at any time.

Saudi Arabia, Russia Meet To Discuss Cooperation Ahead Of OPEC+ Meeting

Saudi Arabia’s Energy Minister Abdulaziz bin Salman met today in Riyadh with Russia’s Deputy Prime Minister and top OPEC+ negotiator Alexander Novak to discuss further cooperation between the two countries ahead of next week’s monthly OPEC+ meeting.

According to a tweet by the Saudi Energy Ministry, “The meeting discussed the latest developments in the work of the Saudi-Russian joint committee, and discussed opportunities for cooperation between the two countries within its framework.

The next OPEC+ meeting, scheduled for August 3, should see the end of the record production cuts that the extended cartel agreed in 2020 amid the demand destruction wrought on the oil industry by pandemic lockdowns around the world.

At the time, the group agreed to remove a combined 9.7 million barrels daily from global oil supply. Since then, OPEC+ has been gradually reversing the cuts but underperforming, prompting worry that not all of its members are capable of increasing their output in line with demand growth.

According to unnamed sources cited by Reuters, OPEC+ might consider keeping its production rate unchanged in September, although there will also be discussions of a moderate increase in output.

“OPEC production is constrained, though supplies are stabilizing in Libya and Ecuador. Under-investment in many member countries will keep production constrained,” ANZ Research said ahead of the meeting.

Analysts from Energy Intelligence also said a substantial hike in oil production from the OPEC+ group was unlikely to follow next week’s meeting, noting the spare capacity constraints of its members.

Only two OPEC members have considerable spare capacity—Saudi Arabia and the UAE—and both have indicated they are unwilling to tap it in response to calls from Europe and the U.S. to boost production in order to make up for lost Russian barrels as a result of Western sanctions.

ADVERTISEMENT

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Mamdouh Salameh on July 29 2022 said:
    Saudi Arabia and UAE are producing at maximum and, therefore, they neither have a considerable spare capacity as the author wrongly claimed nor even a small capacity.

    UAE can only add an estimated 100,000 barrels a day (b/d) to its production while Saudi Arabia can’t without drawing some oil from its stockpiled oil.

    And with OPEC+ production cuts of 9.7 million barrels a day (mbd) since the height of the pandemic in April 2020 coming to the end. It is natural that the most influential members in OPEC+, Russia and Saudi Arabia, should meet and plan their strategy for their continued cooperation in the future.

    This is of paramount importance against a background of a most bullish and tight global oil market, robust demand and an ever-shrinking global spare oil production capacity including OPEC+’s.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

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