Saturday , June 3 2023

Russia: Require production cuts to stabilize Oil Markets


Russia began to concede that want to join & # 39; decline in oil production led by Saudi, but it is still negotiating with its main partner in OPEC about how much, how fast and how potentially time will reduce the production of its oil. Thursday, citing two sources & # 39; industry.

For almost a month – since OPEC board / non-OPEC showed that it can & # 39; there is a need for oil production reduced by & # 39; 1 million BPD to balance the market Russia warned against any hasty decision on cuts & # 39; New production and officially declare that is needed cut.

While Saudi Arabia and Minister & # 39; its Energy Khalid al-Falih made the idea of ​​& # 39; cutting & # 39; new production, Russia was less convinced that you & # 39; participate in further reductions, or at least leave the market believes.

Moscow, however, has repeatedly said that its cooperation with & # 39; OPEC must and will continue.

just yesterday, the Russian President Vladimir Putin said that Russia was comfortable with the current level & # 39; oil prices & # 39; around $ 60 per barrel and thanked Saudi Arabia and its Crown Prince Mohammed bin Salman for OPEC-Russia cooperation in the management of the oil market.

Putin is scheduled to meet & # 39; with Prince in the G-20 in & # 39; Bus Buenos Aires later this week.

The Russian energy ministry is discussing the potential reduction of oil production with local producers and will continue talks off position by the OPEC / non-OPEC meeting in early & # 39; December the Minister of Energy Alexander Novak said last week. Another meeting with young Russian oil companies was held on Tuesday.

Related: The powerhouse of OPEC Oil Replacement

"The idea of ​​the meeting was that Russia must fail. The key question is how quickly and with & # 39; as," a source familiar with the discussions between the Russian Energy Ministry and oil companies local told Reuters on Thursday.

Most people agreed that Russia can not immediately cut production if logging join, will cut production gradually, as did the previous time, the source told Reuters.

There is a need & # 39; cutting, but Russia does not want chips with & # 39; big cut, the second source told Reuters.

Analysts believe that Russia agreed to cut production is crucial to the group OPEC / non-OPEC seeks to cut & # 39; agreement. Saudi Arabia al-Falih already stated that while the Saudis will do whatever is necessary to stabilize the oil market, can not and will not do it alone without a collective decision by OPEC and the non-participating OPEC.

From Tsvetana Paraskova for

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