Russia’s energy minister discusses OPEC + deal with local oil firms


Russian media reported that Russia’s Energy Minister Alexander Novak is meeting with officials of Russia’s oil companies on Monday to discuss the OPEC + production cut deal.

Russia is the leader of the non-OPEC group of producers in the OPEC + treaty, currently totaling 7.7 million per day (bpd) from the market in hopes of stabilizing oil prices and bringing down global market inventories after discovery globally Withdrawing barrel. Earlier this year, the epidemic reduced oil demand.

Since the start of OPEC + cooperation in 2017, Russian oil companies have often expressed disapproval of the cuts, which Russia has promised to abide by, arguing that they are reducing production so that oil prices are higher Be able to help achieve greater production. From the American Shell Patch.

OPEC + plans to cut the cut to 2 million bpd starting in January 2020. However, fragile oil markets with renewed lockdown in major European economies and the second COVID-19 wave threaten the pace of global economic and oil demand recovery. There is already speculation in the market that OPEC + should, and will probably delay easing the cuts, unless there is more certainty about an improvement in demand.

In early October, Russia’s Novak said the OPEC + alliance was optimistic that it would be able to reduce production cuts as planned from January, despite an increase in coronovirus cases in several countries. Two weeks later, Russian President Vladimir Putin said he was not delaying reducing cuts to OPEC +, or further cuts.

Before talking to its allies, Russia is now inaugurating the sentiment among its domestic oil producers, today is Novak’s meeting with the authorities.

However, the final decision-maker will be Putin, who wants to maintain close contact with OPEC’s top producer and de facto leader, Crown Prince of Saudi Arabia, Mohammed bin Salman.

The Kremlin said that Putin and the Crown Prince discussed the oil market in mid-October and “again emphasized their readiness to continue close coordination in the region in the interests of maintaining stability in the global fuel market.”

By Charles Kennedy for Oilprice.com

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