Tuesday, February 16, 2016

Russia and the OPEC countries agreed to freeze the level of oil production – RBC

Photo: AP

According to the results of negotiations in Qatar, representatives of Russia, Qatar, Venezuela and Saudi Arabia have decided to freeze the oil level on 11 January. The last time OPEC countries to coordinate production levels of more than 15 years ago

According to the results of the meeting of representatives of the Ministries of Energy of Russia, Qatar, Saudi Arabia and Venezuela, it was decided to freeze the oil production at the level of January 11, reports Bloomberg referring to the statement by the Minister Saudi oil. The Russian Energy Ministry confirmed this information, adding that the countries involved in the negotiations, ready to freeze the production, if other manufacturers do the same

«Following the meeting, the four countries -. Russia, Saudi Arabia, Qatar and Venezuela – are willing to freeze oil production at the level of January, when other manufacturers join this initiative, “- said the head of the Ministry of Energy Alexander Novak

In the Ministry of Energy of Qatar, said they would monitor the implementation of the agreement.. The representative of Qatar said that the further steps the country will be thinking in the coming months. Oil Minister of Saudi Arabia after the talks, said that production freeze at the January level is “adequate”, while Saudi Arabia wants to meet consumer demand.

According to the International Energy Agency (IEA), Saudi Arabia produced in January 10 , 2 million barrels per day, it’s a little less than at the peak in June 2015 – 10.5 million barrels per day. Russia produces about 10.9 million barrels per day in January – a record in the post-Soviet era

A source in one of the major oil companies told RBC that is selected is very good date for the production of freezing.. “January 11 was one of the highest production levels in order to preserve it is not necessary to particularly tense”, – he said

The official representative of “Rosneft” Miail Leontiev told RBC that the company sees no reason to comment. because they do not know the details of ministerial agreements. “We do not know the terms, we do not know under what conditions agreed to freeze production of Russia, did not know that the other market participants”, – he said. “We have repeatedly expressed our position: the configuration of the interests and positions of market participants such that the grounds to ensure that was reached some agreement, we do not see,” – said Leontiev
.
 The representative of “Gazprom oil” has not yet responded to a request to RBC. The representative of “Bashneft” also declined to comment

About the plans to meet in the Qatari capital -. Doha – Head of the Russian Ministry of Energy Alexander Novak, Minister of Petroleum of Saudi Arabia, Ali al-Naimi and colleagues from Venezuela and, Eulogio Qatar del Pino and Mohammed al-Sade – before reported Bloomberg

The news of the Russian-Saudi meeting led to an increase in oil prices.. During today’s trading on the stock exchange price of a barrel of ICE Brent rose to $ 35.54, which is 6.43% higher than yesterday’s closing session level. The ruble has also moved to the growth on the news, the dollar fell below 76 rubles., The euro for the first two weeks, fell below 85 rubles.

Once it became known that the Doha negotiations have not been decided to reduce the production of hydrocarbons, the oil price fell below $ 34 a barrel, the dollar and the euro jumped up.

on the possible meeting with OPEC, which may be raised the question of reducing oil production, the head of Novak said in end of January 2016. He added that the meeting trying to convene the members of OPEC. The Minister then explained that Russia may consider the possibility of reducing oil production only if the production will reduce all exporting countries.

Bloomberg noted that an informal meeting was organized in Doha recalls events of the “oil diplomacy” late 1990 ‘s, when the OPEC countries, with the support of Mexico failed to agree on a phased reduction of oil production. Then, after the fall in oil prices in 1998 ($ 25 in 1997, they had fallen to less than $ 10 in 1998), OPEC has made several attempts to influence the market, reduce its daily production, first by 1.25 million barrels. in April, followed by 1.34 million barrels. in July, but the oil continued to fall in price until the end of the year

As of March 1999 the cartel failed to agree on production cuts, not only among its members but also with the countries outside OPEC -. Mexico, Norway, Russia and Oman. In total, daily production was reduced by 2.1 million barrels., Of which a reduction of 1.7 million barrels. It accounted for OPEC countries. Common efforts brought results: by May 1999 the oil price rebounded to $ 16 / bbl, and the following year rose to $ 30

Once again coordinate their actions of OPEC and its member countries to oil producers.. It succeeded in 2001 year. Then oil prices were under attack from the recession of the US economy following the September terrorist attack. During the year, OPEC cut production by 3.5 million barrels. / Day., And cartel leadership refused to cut supply by 1.5 million barrels., If they are not joined by other oil powers. As a result, Angola, Mexico, Norway, Oman and Russia agreed to reduce the daily volume of the oil produced at the 462 th. Barrels. per day (in Russian then had about 150 thousand. barrels.).

LikeTweet

No comments:

Post a Comment