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Page added on April 21, 2018
Russia and Saudi Arabia forge alliance to engineer oil prices
Two of the world’s largest oil producers see a consensus emerging between OPEC and non-OPEC states for long-term cooperation on stabilizing oil prices, including the extension of output cuts expiring at the end of 2018.
Ahead of a meeting between Russia and the Organization of Petroleum Producing Countries (OPEC) in the Saudi Arabian Red Sea resort of Jeddah on Friday, Saudi Energy Minister Khaled al-Faleh said there was “consensus” forming among oil producers to extend cooperation on a long-term basis.
His Russian counterpart, Alexander Novak, said there was a solid foundation for such cooperation between members of the oil cartel and other producers.
“We have created a very solid foundation for cooperation between OPEC and non-OPEC countries in the future even beyond the declaration of cooperation,” Novak said.
The declaration of cooperation Novak was referring to is an agreement struck between the 14 OPEC members and an additional 10 non-OPEC countries in 2016 aimed at cutting their combined oil output by 1.8 million barrels per day (bpd) to reduce a global oversupply and boost prices.
Read more:Bahrain strikes oil in biggest find since 1932
The deal, which is due to expire at the end of 2018, has succeeded in reducing the oil glut and pushed prices to over $70 (€57) a barrel from less than $30 in January 2016.
Extended cooperation
Russia is the world’s leading producer of crude oil, pumping around 11 million bpd. Its approval of the alliance is crucial to its success.
Previously, Moscow had appeared reticent to extend the output cuts beyond 2018, with Novak telling state-owned news agency Tass before his departure that Russia could still decide to begin rolling back the production cuts as early as this year.
But after meeting Saudi officials on Friday he said: “Both consumers and producers of oil are expecting us to retain this solidarity to ensure stability and growth of the market.”
Saudi Energy Minister Khaled al-Faleh added that the two sides were “at the stage of setting a long-term framework” beyond 2018.
Rising prices
Oil prices on Friday stayed near three-year highs reached earlier this week, with ongoing OPEC-led supply cuts and strong demand gradually drawing down excess supplies. But Khalid al-Falih warned that global oil inventories had not yet fallen far enough.
“Today [inventories] are still about 2.8 billion barrels, they are significantly below the peak in 2017 of 3.12 billion barrels but still above the time when the glut started to materialize,” he said, adding that producers shouldn’t be “complacent and listen to some of the suggestions of ‘mission accomplished’.”
Falih also noted that there remained many variables in the market as demand was uncertain and new supplies were emerging at a quicker pace than anticipated.
And indeed, rising prices were also a result of strong oil demand, posting the strongest year-on-year growth since the fourth quarter of 2010 at 2.55 million bpd. Beyond OPEC’s supply management, crude prices have also been supported by an expectation that the United States will re-introduce sanctions on OPEC-member Iran.
A factor that could start weighing on prices again is the rising output of US shale, which has jumped by a quarter since the middle of 2016 to 10.54 million barrels per day (bpd). Unconventional drilling, or fracking, has made the US the world’s second-biggest producer of crude oil behind only Russia.
uhe/mm (Reuters, AFP)
27 Comments on "Russia and Saudi Arabia forge alliance to engineer oil prices"
BobInget on Sat, 21st Apr 2018 11:50 am
Oh, that Bahrain discovery won’t be ready for prime time for at least 5 years.
Read more:
Bahrain strikes oil in biggest find since 1932
(that’s 1932 for Bahrain)
Two important points;
1) Saudi Arabia, Russia, because they are totally dependent on oil revenue REQUIRE $100 oil at minimum.
2) ChIndia, Europe, buying US crude because it’s
$5 bucks cheaper. This situation could reverse at any time.
Rough times a coming;
“2-year US Treasury yield at 2.45%, the highest level in almost a decade, and more than four times the yield on 10-year German government bonds! Germany has both budget and trade surplus, we have deficits. We are in a Trade War with China, sanctioning Iran and Russia, bombing Syria. God help us”.
(why should She?)
Cloggie on Sat, 21st Apr 2018 12:05 pm
Good news, the higher the oilprice the better:
1. for the income and hence geopolitical strength of Russia
2. to stimulate renewable energy
120$ is better than 100$ is better than 50$.
We have enough wealth already. We need to refactor our industrial societies.
dissident on Sat, 21st Apr 2018 12:15 pm
Syria is where Saudi Arabia and Russia are basically at war.
The gasoline prices I am seeing are higher than before for the same price for an oil barrel. I cannot believe that the inflation in costs of refining facilities is so high.
Davy on Sat, 21st Apr 2018 12:18 pm
“Good news, the higher the oilprice the better:”
You always fail to list the other consequences many negative for all and benefits to others who are not part of your agenda.
Cloggie on Sat, 21st Apr 2018 12:32 pm
“You always fail to list the other consequences many negative for all and benefits to others who are not part of your agenda.”
I admit it, I want chaos, just like millimind but for different reasons. He wants his anti-white neo-bolshevik (racial) revolution in the US, I want a pro-European right-wing revolution in continental Europe.
Anything but the status quo of the US empire. I had hoped that Richard Heinberg would deliver with his peak oil, but he failed miserably.
Davy on Sat, 21st Apr 2018 12:42 pm
Sometimes my moderating helps you along neder. You just need a little guidance and honesty occasionally shines through.
Cloggie on Sat, 21st Apr 2018 12:47 pm
“Sometimes my moderating helps you along neder. You just need a little guidance and honesty occasionally shines through.”
Sure daver, whatever.
Already found proof that Dolfie wanted to conquer ze wurld and not the (((Americans)))?
https://twitter.com/RealGilbert/status/987303737776631808/photo/1
https://en.wikipedia.org/wiki/Gilbert_Gottfried
fmr-paultard on Sat, 21st Apr 2018 1:05 pm
eurotard, you can’t possibly believed a confrontation between US and PBBM + Iran + Syria + Chad + Bangladesh + Banda Aceh was imminent? Or you believed hypersonic missile right before dictorship election is going to change everything overnight? You’re either dumb or a fantatic nazi walking around with a stiff arm. try a muscle relaxant or cut it off.
Cloggie on Sat, 21st Apr 2018 2:13 pm
“eurotard, you can’t possibly believed a confrontation between US and PBBM + Iran + Syria + Chad + Bangladesh + Banda Aceh was imminent? ”
No.
Scenario:
Trump gone
America attacks Iran
Europe remains neutral like in 2003
Russia and China support their proxy Iran
American losses in the Gulf mount
Secessional movement in US gathers pace:
https://youtu.be/T-Hqz0h6mZ8
Unconfirmed reports about large scale European and Russian and Chinese weapon deliveries to the US white insurgents via Mexico
Davy on Sat, 21st Apr 2018 2:18 pm
Sounds like a good anti-American fiction novel, neder. Billy 3rd world says he is a sci-fi writer maybe he can help you write something like that. Here is a title: PBM Prelude to Empire. LMFAO. You and greggie keep this board just silly enough for some good laughs. What is funny is you goofballs are serious.
Cloggie on Sat, 21st Apr 2018 2:27 pm
Dead serious.
MASTERMIND on Sat, 21st Apr 2018 2:39 pm
Clogg
You better becareful of Soros will send some black helicopters to come and get you!
MASTERMIND on Sat, 21st Apr 2018 2:59 pm
Reports of heavy gunfire ongoing near Saudi’s King’s palace in Riyadh, Saudi Arabia. The king has reportedly been evacuated to a bunker at a military base in the city. Casualties unclear. The king has reportedly been evacuated to a bunker at a military base in the city.
https://twitter.com/ghanemalmasarir/status/987763255371354112?s=21
Davy on Sat, 21st Apr 2018 3:04 pm
That is your problem neder, you are dead serious about fantasy. The worst type of personalities are this way. Your Nazi leader was very similiar although at a much different scale. You just command a little blog and a small house in a Dutch villiage. Yet, I think you see a grandiosity in yourself like you are a key mover behind a movement. More childishness like what is demonstrated by your buddy greggie.
Cloggie on Sat, 21st Apr 2018 3:18 pm
“Your Nazi leader was very similiar although at a much different scale.”
I don’t have a Nazi leader, Prozark.
Spare me your “wisdom” on a topic you refuse to talk about, because you know you are sitting on a pack of lies. You and your ilk are the shallow depressed little guys of the white race (“huddled masses”), the poor left-overs from Europe, people without identity and history, unable to generate an elite that could protect you against the only serious enemy we Europeans have on this planet. Millimind knows who I mean.
The time for a major geopolitical haircut of the “exceptionalists” is at hand. And there is nothing you can do about it.
Cloggie on Sat, 21st Apr 2018 3:29 pm
KSA probably false alarm. Guards shooting at a drone:
http://www.dailymail.co.uk/news/article-5642379/Drone-shot-outside-Saudi-Arabia-palace-sparks-coup-fears.html
MASTERMIND on Sat, 21st Apr 2018 3:33 pm
Davy
You nailed it. Clog is a pathetic low life neckbeard. And his country is about to run out of their largest natural resource. If it wasn’t for all that nat gas their his country would have never become developed anyways. Anyways the world is going to fun out of oil soon and collapse. his populist dream will never come true. and he will likely just kill himself when the oil starts to run out. He will take his deny of reality to the grave.
https://imgur.com/a/pYxKa
MASTERMIND on Sat, 21st Apr 2018 3:39 pm
Clogg
Here is tip on the least painful way to kill yourself when the oil starts to run out. I learned it in chemistry school. If you burn charcoal indoors it puts off carbon monoxide. And if you inhale it you will pass out and die peacefully without any pain. Its called a “Charcoal Suicide”. It was invented by a chemist in Asia. Its still a popular way to kill yourself in Asia to this day.
Cloggie on Sat, 21st Apr 2018 3:39 pm
“If it wasn’t for all that nat gas their his country would have never become developed anyways.“
Natgas was discovered in the fifties…
https://deepresource.wordpress.com/2017/08/05/the-speed-of-the-energy-transition/
…while in the 17th century Holland was the first address on this planet, without natgas, you fool.
Cloggie on Sat, 21st Apr 2018 3:42 pm
“Here is tip on the least painful way to kill yourself”
Holland is one of the countries with the most professional euthenasia services in the world, thank you very much.
MASTERMIND on Sat, 21st Apr 2018 3:57 pm
Clogg
Why do you block any comments on your blog? you know I would blow it up with facts and scientific references that would deconstruct your fantasy. So much for the king of free speech! its sad you have to make up your own blog to convince yourself of what you want to believe. Its just a matter of time before the majority of the public becomes aware renewable s are a delusion. You can’t fool the people forever!
Davy on Sat, 21st Apr 2018 4:11 pm
Neder, Holland is a stupid little country and who cares about the 17th century. Scale and proportionality has always been an issue for you. You are just little neder nothing special and never will be so give it a rest. No wonder you and greggie are best of friends. You both are stuck on yourselves.
Cloggie on Sat, 21st Apr 2018 4:18 pm
“Its just a matter of time before the majority of the public becomes aware renewable s are a delusion.“
https://qz.com/1245048/portugal-generated-enough-renewable-energy-to-power-the-whole-country-in-march/
MASTERMIND on Sat, 21st Apr 2018 4:26 pm
Neo Nazi rally in Georgia tomow! Antifa will be their! The pigs can’t protect the fascist forever!
MASTERMIND on Sat, 21st Apr 2018 5:01 pm
The name Elon Musk has been well chosen; it defies categorization as to race, class, religion, etc.Ever met or even heard or read of an Elon, or a Musk? So rare a combination as to have no established profile.
People of a certain kind, created in large numbers by our education system, can project themselves onto the Elon image, and feel very pleased with themselves. ‘He’s young, cool, hopeful, clever and rich, cosmopolitan just like me,and will take us to another world now this sad old mud ball is nearly finished!’
We are witnessing one of the most brilliant propaganda creations, appropriate for late-stage industrial, mass, civilization!
It’s really quite staggering that the propaganda and mind-conditioning system is projecting Elon Musk as the man to solve ALL our problems, and that this is being pushed energetically on children in school
The Soviet Union could not have done better: it’s Uncle Joe Stalin – he’d even pop up and fix your car if it broke down, with a cheery smile and a ‘No problem, Comrade!’ as he lit his pipe and waved you on your way.
The majority of people are so historically ignorant -and have been kept so – that they can’t see this for what it is.
https://imgur.com/a/T9TDt
Cloggie on Sat, 21st Apr 2018 5:13 pm
“Neo Nazi rally in Georgia tomow! Antifa will be their! The pigs can’t protect the fascist forever!”
Weimerica latest:
http://time.com/5249233/newnan-georgia-protests/
Whatever, as long as the joint breaks up. Way past shelf life.
Give New York to the Soros-Rothshildt bunch and make an open air museum for applied Marxism out of it.
Boat on Sat, 21st Apr 2018 5:19 pm
Mm
Musk would never been so successful except that as a child he was breast feed by a Jewish woman and snuck the pork into the trash when the Musk was young. Lol