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Page added on March 10, 2016
OPEC-Russia Oil Coalition Struggles With Its Very First Step
A month after promising co-operation that would re-balance global oil markets, the producer coalition forged by Saudi Arabia and Russia is having difficulty taking its first step.
OPEC members and rival producers have yet to decide when, or where, to hold talks on a proposed accord to freeze oil output, a strategy aimed at curbing the worldwide oversupply. Dates and locations suggested by one producer — this month or next, in Moscow, Doha or Vienna — are promptly snubbed by another in the fledgling alliance. On Wednesday the process received another setback when a gathering of Latin American producers scheduled for Friday in Quito, Ecuador, was pushed back.
OPEC members and Russia reached a tentative agreement on Feb. 16, their first in 15 years, to cap oil output to ease a crude-price slump that’s pummeled economies, markets and companies. Benchmark Brent oil has since recovered from the 12-year low it reached in January. While a production freeze alone is seen as inadequate to tackle the oil surplus, Saudi Arabia’s description of the deal as “the beginning of a process” spurred speculation that more concrete steps may be taken.
“It’s funny to hear almost each day the different dates, different locations or the lack of invitation for this producer meeting,” said Giovanni Staunovo, an analyst at UBS Group AG in Zurich. “Talking about the freeze has been supporting prices, but talk is cheap. Even if a freeze is agreed, it won’t eliminate near-term global oversupply.”
Welcomed by most OPEC members, the pact struck between Saudi Arabia, Russia, Venezuela and Qatar also received some support from other producers. Azerbaijan is prepared to join the agreement, ANS TV reported, citing State Oil Co. of Azerbaijan President Rovnaq Abdullayev on March 6, while Oman’s oil minister described the deal as positive on Feb. 23. Kazakhstan said in January that its production is already projected to decline this year.
Still, the initiative will have little impact on the global surplus without the co-operation of Iran, which is unlikely to participate, according to Commerzbank AG. Poised to restore as much as 1 million barrels of daily exports previously blocked by sanctions, Iran has dismissed the proposal as “ridiculous.”
There are other signs the accord may be fraying before it even begins, as countries that initially welcomed the idea push for bolder action. Freezing output is “insufficient” given the scale of the oversupply, Algerian Energy Minister Salah Khebri said in Algiers on March 9. Ecuadorean Oil Minister Carlos Pareja said the planned Quito gathering of Latin American producers — now on hold — may have pushed for output cuts.
That would clash with the stated policy of OPEC’s biggest member, Saudi Arabia, whose Oil Minister Ali al-Naimi said Feb. 23 that the freeze would not become a cut.
Quito Postponed
Ecuador’s Pareja said the planned conference of regional producers would be postponed until late March or early April because of scheduling difficulties, according to government news agency Andes. Even if the region’s exporters agreed to cap supply, International Energy Agency data indicate there would be little impact on markets as output from most Latin American producers is set to stagnate or decline through next year anyway.
Getting to the next round of talks has been a tangled process.
Speaking at the IHSCera Week conference in Houston last month, Saudi Arabia’s al-Naimi said the process of devising a freeze agreement would continue with more discussions in March. Two weeks later, Nigerian Petroleum Minister Emmanuel Kachikwu said those talks would be held in Russia on March 20. While RBC reported the meeting would be in St. Petersburg, Russia’s Energy Ministry said later that day no date or location had been decided.
On March 4, Russian Energy Minister Alexander Novak told state television channel Rossiya 24 that a meeting could take place between March 20 and April 1 in Russia, Doha or Vienna. In the interim he’ll travel to Iran March 14, his spokeswoman Olga Golant said Thursday.
“The meeting may not go ahead, there is the probability it will be inconclusive if it does go ahead and, whatever is agreed if there is an agreement, is unlikely to impress the market,” said David Hufton, chief executive officer of brokers PVM Group in London.
22 Comments on "OPEC-Russia Oil Coalition Struggles With Its Very First Step"
Anonymous on Fri, 11th Mar 2016 8:38 am
There is no Russia-OPEC coalition. Rigpoon dumpasses….
Practicalmaina on Fri, 11th Mar 2016 10:29 am
Ahh but there is. Russia Saudi Iran the US, everyone e agreed to use some of their production to destroy the birthplace of civilization. You know, for the common good. We can’t leave any ancient sites standing that were built by non whitey. It is important to do this to properly pimp out the world for our parasite lifestyle.
joe on Fri, 11th Mar 2016 10:50 am
At least 25% of isis foreign contingent is Saudi, yet we are to believe that none of them are military guys ‘on personal leave’?
So Russia is both fighting an arab jihadi coalition seeking to convert and destroy the west, and the wedt undermines thrm at every turn.
Its no wonder they cant agree a simple oil deal
http://www.mirror.co.uk/news/world-news/explosive-isis-leak-1736-top-7525076
Boat on Fri, 11th Mar 2016 10:55 am
Practical,
In 2060 the US will become a Minority-Majority Nation. You gonna blame whitey then?
Being a racist doesn’t advance any issue.
Boat on Fri, 11th Mar 2016 10:55 am
Practical,
In 2060 the US will become a Minority-Majority Nation. You gonna blame whitey then?
Being a racist doesn’t advance any issue.
Practicalmaina on Fri, 11th Mar 2016 11:06 am
Boat you have no idea what the us will look like in 2060, and I will blame you specifically and any other fossil fuel fanboy. Libya and Syria unrest is primarily because of a drought caused by global warming, caused by the methane spewing from your ass and mouth. I am not being a racist, I am a realist, European interest did not conquer the world in hopes to help anyone but themselves.
Practicalmaina on Fri, 11th Mar 2016 11:14 am
We have Mexicans in this country for several reasons that can be traced back to lazy drug abbusing white people. Climate change, war on drugs being faught primarily in Mexico and along the border, trade policy’s that obliterate small farmers. Americans not capable of feeding themselves because we don’t want to pick veggies or work in a terrible industrial slaughterhouse.
Remind me again how we stole the best land suited for climate change away from the indigenous people and now we’re pissed that our destruction of the environment is bringing people to our borders.
Go master bate to a Trump speech. Or try this one
https://youtu.be/v_leY_LgOuQ
The similarities are pretty significant.
Practicalmaina on Fri, 11th Mar 2016 11:18 am
Go blow an executive at MonSanto you misinformed fuck
Practicalmaina on Fri, 11th Mar 2016 11:22 am
Anyone ever scene children of men? I see that future coming as big buisness continues to use our lungs and livers as dumping ground. Women will be effected worst from endocrine disruptors. Did you know that receipt paper is Terrinle for you, the toxins can easily pass threw your skin.http://blogs.discovermagazine.com/d-brief/2014/10/27/receipts-expose-high-levels-bpa/#.VuL-niNOnqA
Boat on Fri, 11th Mar 2016 12:20 pm
“Boat you have no idea what the us will look like in 2060, and I will blame you specifically and any other fossil fuel fanboy”
Blame away anti whitey. I don’t care about fossil fuels or Monsanto. Facts are just that. It dosen’t matter if I like them or not.
The Us becoming a Minority-Majority Nation is the statistical trend. Look up the defination and learn something.
Practicalmaina on Fri, 11th Mar 2016 12:45 pm
Yes it is a statistical trend, but is one that has been revised further into the future several times. I have not been accused of being a self hating white dude in a while. I am just pointing out that you are saying you don’t give a crap about 2 things that cause disease and you only seem to care about your neighbor being tan very much.
Practicalmaina on Fri, 11th Mar 2016 12:48 pm
You should care, you are a consumer, a resident on this planet and on a website concerning ff. Your the one who needs to open his eyes.
Practicalmaina on Fri, 11th Mar 2016 12:48 pm
You should care, you are a consumer, a resident on this planet and on a website concerning ff. Your the one who needs to open his eyes.
Boat on Fri, 11th Mar 2016 1:51 pm
Practical
“Yes it is a statistical trend, but is one that has been revised further into the future several times”.
Where are the revisions that show the trend to be inaccurate.
“You should care, you are a consumer, a resident on this planet and on a website concerning ff. Your the one who needs to open his eyes”.
I vote for any change with my money. If it is cleaner and has at least equal value, that makes the decision easy. Trying, caring, wanting, hating, etc are emotions wasted. Be a man. All the emotion in the world won’t stop climate change.
PracticalMaina on Fri, 11th Mar 2016 1:58 pm
You cheer lead big buisness, you dont care about the environment, just the value of your fucking stock.
The crossover of white people from majority to minority was supposed to have happened many times by now.
http://www.cnn.com/2008/US/08/13/census.minorities/
In 8 years we gained 10. Trump is a few elections behind. As Ron Paul once said “I think this fence business is designed and may well be used against us and keep us in. In economic turmoil, the people want to leave with their capital and there’s capital controls and there’s people controls. Every time you think about the fence, think about the fences being used against us, keeping us in.”
PracticalMaina on Fri, 11th Mar 2016 2:01 pm
You talk about money and stock values, your priorities are as transparent as your bull.
You called trying an emotion BTW. Yeah throw out the needless emotion of making an effort about anything, that is the way to be a man, a proud in denial white man just like the boat.
PracticalMaina on Fri, 11th Mar 2016 2:26 pm
you done commenting on this article Boat? I gave you the proof you wanted, why am I very suspicious you will not read it. Cultural Cognition issue?
PracticalMaina on Fri, 11th Mar 2016 2:33 pm
In hindsight that specific article does not say the crossover was supposed to have happened already but I can remember being a kid and hearing the panic of it happening before 2020, I would have to put in real effort to find these older reports, and its not worth it.
Boat on Fri, 11th Mar 2016 2:34 pm
You cheer lead big buisness, you dont care about the environment
Are you on drugs? I support every big business that improves products making them more efficient and cleaner for the environment. That’s how the world will work till it doesn’t. I don’t support coal and think wind is good without subsidy. I 1could make you a list but am not sure if your hormones would hold up.
PracticalMaina on Fri, 11th Mar 2016 2:52 pm
Bahahahha
You ignored my article, clearly…
Give me names of these glorious corporations that you support, no big business has their hands completely clean. The only green sections of a big business is almost exclusively PR purposes to trick jokers like you. You do not think wind should be subsidized but you don’t mention coals handouts.
PracticalMaina on Fri, 11th Mar 2016 2:58 pm
“That’s how the world works till it doesn’t”
It could work this way, O I do not need 90% of the shit that marketing has tried to convince me I do, maybe I will plant some vegetables and take a walk instead of going on Amazon.
I remember you blindly supporting Monsanto so you saying you support any big business bla bla bla does not give me much faith that your money will be used to do anything to help.
Boat on Fri, 11th Mar 2016 4:36 pm
Practical,
I remember you blindly supporting Monsanto
No, I support the farmers right to plant what they want as long as it is legal. Just like I don’t blame the legal pot grower.