Russia sees ‘solid foundation’ for extending oil alliance

Saudi Energy Minister Khaled Al-Faleh, left, and Russian Energy Minister Alexander Novak talk to the media during a meeting of OPEC and non-OPEC members in Jeddah on April 20. (AFP)
Updated 20 April 2018
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Russia sees ‘solid foundation’ for extending oil alliance

  • Russia is the world’s leading producer of crude oil, pumping around 11 million barrels per day
  • Saudi Energy Minister Khaled Al-Faleh said there was “consensus” forming among oil producers to extend cooperation on a long-term basis

JEDDAH: Russia said there was a “very solid foundation” for extending cooperation between OPEC and non-OPEC countries at a meeting Friday of oil producers in Saudi Arabia.
Oil kingpin Saudi Arabia said a “consensus” was emerging for a long-term cooperation agreement.
“We have created a very solid foundation for cooperation between OPEC and non-OPEC countries in the future even beyond the declaration of cooperation,” Russian Energy Minister Alexander Novak said in the Saudi Red Sea city of Jeddah.
He was referring to a cooperation agreement between the 14-member OPEC group and 10 non-OPEC producers, led by Russia, to cut oil production by 1.8 million barrels per day to reduce oversupply.
The deal — which is due to run out at the end of 2018 — has succeeded in reducing a global glut of oil and pushed prices to over $70 a barrel from less than $30 in January 2016.
“Both consumers and producers of oil are expecting us to retain this solidarity to ensure stability and growth of the market,” Novak said at the start of a ministerial committee meeting to assess the compliance with the cuts.
Russia is the world’s leading producer of crude oil, pumping around 11 million bpd and its approval of the alliance is crucial to its success.
Saudi Energy Minister Khaled Al-Faleh said there was “consensus” forming among oil producers to extend cooperation on a long-term basis.
“There will be an extended framework of cooperation ... There is a consensus emerging. We need to do that,” he told reporters ahead of the Jeddah meeting.
“We are at the stage of setting a long-term framework” beyond 2018, added Faleh, whose country is the world’s top crude exporter.
Although reports indicate that a significant portion of oil glut has been removed from the market, Faleh warned that more work needs to be done.
He said that the inventory levels were still higher than the normal average and “we have not seen the low season,” when demand for oil drops, he said.
Novak said that the production cuts agreement, which came into effect at the start of 2017, has removed some 300 million barrels of surplus crude from the market.


Iran says no OPEC member can take over its share of oil exports -SHANA

Updated 19 August 2018
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Iran says no OPEC member can take over its share of oil exports -SHANA

  • Senior Iranian diplomat urges OPEC’s secretary general to keep the group away from the political agenda of some members
  • Iran has asked OPEC to support it against new US sanctions

LONDON: A senior Iranian diplomat urged OPEC’s secretary general to keep the group away from the political agenda of some members and said none should be allowed to take over another’s share of its oil exports, Tehran’s oil ministry news agency said on Sunday.
“No country is allowed to take over the share of other members for production and exports of oil under any circumstance, and the OPEC Ministerial Conference has not issued any license for such actions,” SHANA quoted Kazem Gharibabadi, Iran’s permanent envoy to Vienna-based international organizations was quoted as saying.
Iran has asked OPEC to support it against new US sanctions and signalled it is not yet in agreement with Saudi Arabia’s views on the possible need to increase global oil supplies.