... benefits greatly from the decision of OPEC+ to cut production. Back in February 2023, Deputy Prime Minister Alexander Novak, who is in charge of the energy sector, announced the decision of the national leadership to voluntarily reduce production by 500 thousand bpd. That is, Russia would have cut oil production anyway. But the fact that OPEC+ partners are now joining this thrust means that concerted action will have a much greater impact on the market, keeping oil prices at a high level. Russia has its own reasons for the decision to cut production. The country’s leadership is trying ...
As the OPEC+ deal has expired, Russia and Saudi Arabia remain at odds, though the United States offered encouraging words that production cuts might be negotiated
The Russian-Saudi feud over oil production has destabilized the market even as the industry faces ...
... production hit an
all-time high
: Russia was producing 10.9 million barrels a day; Saudi Arabia 10.091 million barrels; and OPEC 32.3 million barrels, far in excess of its quota. So, even if the agreement comes into force, no serious price growth should ... ... force, no serious price growth should be expected, and there will still be an oil glut in the market.
Second, Iran’s refusal to join the initiative makes it much less likely that oil producing countries will reach agreement. It is doubtful that even ...
... of energy.
This anxiety has chiefly been caused by the numerous unexpected events in July and August, which saw the lifting of sanctions against Iran, disappointment in the pace of growth in the Chinese economy, the situation in the Middle East, and OPEC member countries’ policy. Meanwhile, the oil price is a key factor determining the economic development of many countries, including Russia, where oil production and sale accounts for over
40 percent of revenues
to the federal budget, among ...
... tanks like Brookings and Cato, and NGOs are mushrooming to influence the media and the public.
Should the lobbyists win, the global energy market and the entire network of trade links are in for major changes. Expect the weakening of an emasculated OPEC and more competition for individual energy giants, i.e. Russia, Saudi Arabia, Iran, Nigeria and others, who will face much fiercer competition in the emerging markets and Europe. At the same time, it is too early to predict the outcome, as the issue ...
... the situation. The fall in prices is fraught with unexpected consequences.
Conspiracy, the laws of the market, and the oil weapon
When everything is so bad, conspiracy theories are the simplest explanation. What they boil down to is the idea that the USA and its OPEC ally Saudi Arabia have taken a political decision to bring about a collapse in prices in order to weaken Russia for acting, as they see it, too independently in the international arena, especially in Syria and Ukraine.
diepresse.com
Sami Faraj, President ...
The OPEC refusal to decrease oil production and a subsequent price fall to a 4-year low make the future of Russian economy tenuous. Since July 2014, the Russian ruble depreciated to the U.S. dollar by 45%, and the economic growth stalled. Falling oil prices together ...
... and China anxiously needs oil as the memory of early 2000s energy famish is still fresh. Basically, China cannot trade with OPEC smoothly as it does not give special treatment via some sort of guaranteed quotas and rivalry is fierce from traditional ... ... Russia opposes equity investment and it is not corrupt to an extent that it sells major assets, nor can China engage Europe or USA as that is a political minefield.
If we recall in 2005 CNOOC tried to buy USA’s Unocal, but it failed spectacularly,...
... as it is in fact a double-edge sword, if it prices oil too highly by lowering production [which is not instantaneous, as markets must firstly adjust], it also leads to alternatives being more appealing. It would be wrong to suggest that emergence of USA shale oil boom was due to Saudi Arabia/OPEC pricing policy, as it was more to do with speculation, but still, as prices increased to all time highs US local producers decided to jump on the bandwagon. I doubt that the US will be able to overtake Saudi Arabia and Russia as some reports argue ...
