Russian Oil Execs Agree To Talk With OPEC About cutting production and Boosting Prices. (RT).
Riyadh has asked to meet with world's biggest oil producers, including non-OPEC members, to discuss the current crude price situation and possible output cuts, according to Transneft chairman Nikolay Tokarev.
"Saudi Arabia has taken the initiative, came out with a proposal to discuss the prospects of cutting production. In addition, there will be an OPEC meeting in February, where we [Russian oil authorities and producers] will participate," said Tokarev, who heads the Russian state-owned oil transportation monopoly.He added that cutting production is one way to push up prices and Russia can do that, but only in summer, as it’s technically impossible to do that in winter because of the cold.
Both Riyadh and Moscow have softened their stances regarding the current policy of boosting exports to compensate for cheaper crude, according to Iraq's Oil Minister Adil Abdul-Mahdi on Tuesday, speaking on the sidelines of a conference in Kuwait.
So far, within OPEC, only Algeria and Venezuela have clearly expressed support for a production cut.
However, Iraq, OPEC's second-biggest producer after Saudi Arabia, softened its stance this week, saying it is now willing to reduce its output if all major producers inside and outside of OPEC agree.
OPEC Governor Nawal al-Fuzaia hinted on Tuesday that OPEC is ready to cut production in an effort to slow down the plunge in oil prices. The governor told an energy forum in Kuwait that OPEC is ready to "cooperate" with others to stabilize the crude market. Hmmm........Just with speculation on the coming cuts the price of oil will rise. Read more here.
Global oil prices will not remain at the current level, around $30 a barrel, for long, Charles Ellinas, oil market expert, Executive President, Cyprus National Hydrocarbons Company (CNHC) believes.
“It is an over-reaction to recent developments coupled with trader speculation,” Ellinas told Trend.
“Iran will not ramp up its production as fast as many suggested and US shale oil production is already on a downward trend,” he added.
The US crude oil production is projected to average 8.7 million barrels per day in 2016 and 8.5 million barrels per day in 2017.
Ellinas said that the current oil prices are hurting many countries now. “There is not much of a choice but to carry on,” he said.
“However, some recovery is on the way. Already the OPEC Secretary-General is calling non-OPEC and OPEC members to cooperate in addressing the depressed oil market,” Ellinas said.
He expects that by the middle of the year we will be back to around $50 a barrel.