globalresearch--2019-04-24--Can Saudi Arabia Still Sway the Oil Market

Can Saudi Arabia Still Sway the Oil Market?

Saudi Arabia, the world’s top oil exporter and OPEC’s largest producer, has influenced the oil market and oil flows since the middle of the 20th century.  Shortly after the 21st century began, one of Saudi Arabia’s key customers made its first steps toward becoming one of the Kingdom’s main competitors on the global oil market: the United States began fracking for oil in the mid-2000s. By the end of the 2010s, the U.S. is now the world’s biggest crude oil producer, having surpassed Russia and Saudi Arabia to claim the crown.  Sure, Saudi Arabia is one of the most important factors in global crude trade and oil market participants are lapping up every word and hint from the top oil officials in the Kingdom.  But as the U.S. has started to rely on fewer imported barrels, Saudi Arabia’s power to sway the market has diminished. Another large Saudi customer, China, now has more leverage over Saudi Arabia’s oil flows, Dafna Maor, a columnist for Israeli newspaper Haaretz, writes.  U.S. crude oil imports from all over the world have declined from their peak of 10.126 million bpd in 2005, while imports from Saudi Arabia have also been down in recent years, to average below 1 million bpd in 2017, for the first time since 2009, according to the latest EIA data. Meanwhile, U.S. production is breaking records, despite a slowdown in shale growth in recent months as a result of the 40-percent oil price slump in the fourth quarter of 2018.  In recent years, the Saudis have had stiff competition in what is now the world’s largest oil importing nation, China. In the past three years, Saudi Arabia has lost its status of China’s number-one supplier—to none other than its ally in the OPEC/non-OPEC production cut deal, Russia.  Saudi Arabia is the world’s largest oil exporter, but its dominance over the global oil market has started to crack in recent years. Now the Kingdom influences the market and oil prices as much as (or probably less than) the Permian basin in West Texas does, Haaretz’s Maor argues.  The Saudis don’t want to lose control over OPEC’s oil production policies, which the cartel publicly says are always aimed at a “balanced oil market”, while many OPEC members, including the de facto leader Saudi Arabia, actually need oil prices at least as high as their budget-balance needs. In Saudi Arabia’s case, this is around $80 a barrel Brent Crude or slightly higher.  At the same time, Saudi Arabia claims it wants to diversify its economy away from over-reliance on oil.  As per OPEC figures, the oil and gas sector generates around 50 percent of Saudi Arabia’s gross domestic product (GDP), and accounts for some 70 percent of its export earnings.  The so-called Vision 2030 by Crown Prince Mohammed bin Salman has grand plans about billions upon billions of U.S. dollars in investments into the Saudi economy and renewable energy. Ironically, the Kingdom relies on proceeds from oil, including from the much-hyped but still-on-hold listing of 5 percent in its oil giant Aramco, to fund the transformation.  Yet, until this transformation begins to take place, if at all, Saudi Arabia is aggressively pursuing long-term downstream deals in the world’s fastest-growing oil demand center, Asia, with the goal to lock in future demand for its crude oil.  Aramco has signed in recent months a number of agreements in China to take part in refinery projects. One of the latest deals, buying a 9-percent stake in Zhejiang Petrochemical’s 800,000-bpd integrated refinery and petrochemical complex in Zhoushan, says that “Saudi Aramco’s involvement in the project will come with a long-term crude supply agreement and the ability to utilize Zhejiang Petrochemical’s large crude oil storage facility to serve its customers in the Asian region.”  Despite plans to transform its economy from over-reliance on crude oil and despite gradually losing its dominant position as the single biggest oil price mover, Saudi Arabia is not willing to give up its geopolitical and market power that comes with its current status of the world’s largest oil exporter.  Note to readers: please click the share buttons below. Forward this article to your email lists. Crosspost on your blog site, internet forums. etc.


globalresearch--2019-11-21--The Worst Is Over for Oil Markets

The Worst Is Over for Oil Markets

Some analysts see the world dodging a recession next year, which provides some upward room for oil prices.  Last week, the IEA warned last week that “the hefty supply cushion” building up in the first half of 2020 will cause OPEC+ problems as the group tries to balance the oil market. Part of the reason for another potential surplus is the steep drop in demand growth this year, forcing oil forecasters to make multiple downward revisions to their projections.  The slowdown was particularly concentrated in industrial sectors, which have been hit hard by the trade war.  Or, put more succinctly, “The world has just lived through an industrial recession,” Bank of America concluded, and oil prices really only held up because of massive supply outages in 2019. The industrial slowdown spread around the world.  Take India, for example. The “weak picture for the manufacturing and industrial” sectors of the Indian economy continue, JBC Energy said in a note on Monday, which have hit diesel sales.  But there are some reasons to think that things could turn around. While a lot still depends on the outcome of the U.S.-China trade war and the “partial deal” that the market still believes is likely, recent streams of data have tamped down fears of a recession.  Part of the reason for more optimism is that corporations with global supply chains have held back on purchases over the past year, in large part because of the trade war, and have whittled away at inventory. The strategy seemed to be an attempt to wait out tariffs in the hopes of a negotiated breakthrough. That makes sense at the individual company level, but it hit manufacturers hard as sales and activity dropped. However, companies will now have to restock in 2020, Bank of America says. That could help steady the economy.  Meanwhile, if the U.S. and China can indeed agree to a partial trade deal, that would “further help boost industrial activity and confidence in the global economy,” Bank of America said, and “any signs of improvement on the trade front could add upward pressure to cyclical energy and metals prices.” The removal of some tariffs could both push down the dollar and raise commodity prices.  Still, a comprehensive breakthrough in the trade war is going to be extremely difficult, and the two sides have been far apart on the big issues. The partial deal, such as it is, would only suspend tariffs in exchange for China buying large sums of agricultural goods.  But even the partial deal has run into trouble. The Trump administration has hyped a $50 billion purchase from China for U.S. agricultural goods, a figure that some say is “not possible.” So, it’s worth noting that even a very narrow and modest agreement has become a challenging prospect, to say nothing of more structural differences between the two countries.  In short, while the tone has softened and both sides have signaled that negotiations are proceeding to a conclusion, the U.S.-China trade war is far from finished.  In fact, right on cue, doubts began to resurface on Monday. CNBC said that the “mood in Beijing about a trade deal is pessimistic due to U.S. President Donald Trump’s reluctance to roll back tariffs.” Beijing may instead decide to sit and wait, betting that Trump’s standing continues to deteriorate in the face of an impeachment inquiry.  “It looks like this is by no means a done deal,” Matthew Miskin, a market strategist at John Hancock Advisors in Boston, told Bloomberg.  Note to readers: please click the share buttons above or below. Forward this article to your email lists. Crosspost on your blog site, internet forums. etc.  Nick Cunningham is an independent journalist, covering oil and gas, energy and environmental policy, and international politics. He is based in Portland, Oregon.


rferl--2019-05-05--Iran Says Will Sell Oil On Gray Market

Iran Says Will Sell Oil On 'Gray Market'

Iran has mobilized all its resources to sell oil on the "gray market," bypassing U.S. sanctions that Tehran considers illegitimate, Iran’s Deputy Oil Minister Amir Hossein Zamaninia said on May 5.      His comments come days after Washington announced that it has decided not to reissue waivers in May allowing importers to buy Iranian oil without facing U.S. sanctions.      Washington reimposed tough sanctions on Iran after U.S. President Donald Trump withdrew from the 2015 nuclear accord with world powers last year.      Trump says the Iran nuclear deal was “fatally flawed” because it did not address Iran’s ballistic-missile program or Tehran’s alleged state sponsorship of terrorism.      Tehran says it will continue to export oil in defiance of U.S. sanctions.      "We have mobilized all of the country's resources and are selling oil on the 'gray market,'" the official government news agency IRNA quoted Zamaninia as saying.  Zamaninia did not give any details about the "gray market."      "We certainly won't sell 2.5 million barrels per day as [we were] under the [nuclear deal]," Zamaninia said, giving no figures for current sales.      "We will need to make serious decisions about our financial and economic management, and the government is working on that."      "This is not smuggling. This is countering sanctions which we do not see as just or legitimate," Zamaninia added.      The United States has said it wants to cut Iranian oil exports to zero to deny the clerical establishment a principal source of revenue.


russiainsider--2019-11-05--Russia Breaks Middle Eastern, Latin American Oil Markets Wide Open

The global oil industry is a highly lucrative sector that is strongly influenced by geopolitical developments. As the Post-Cold War era comes to an end, a new status quo is arising. The U.S. was once the only player with the capability to significantly influence energy markets around the globe. The country’s military and global alliances proved powerful tools in controlling developments in regions such as the highly volatile Middle East. But Washington’s global reach is fading and both Russia and China are on the rise.  Moscow has become a force to reckon with in several regions due to a combination of diplomacy and energy politics. In addition to that, Washington’s foreign policy blunders have created power vacuums for other actors to take advantage, blunders such as the recent unexpected withdrawal from Northern Syria. Arguably, Russia has now become the most important power broker in the Middle East. Moscow's plans, however, are not regional, but global. The first-ever Russia-Africa summit is a testament to the Kremlin's global ambitions.  Moscow has also fostered strong relations with several countries in Latin America. Ever since the Monroe doctrine of 1823, the U.S. considers Central and South America as its ‘backyard’. Countries such as Venezuela, however, have resisted Washington’s power and influence. Therefore, when the rumor spread of the sale of South America’s biggest energy company to Russia’s Rosneft, panic spread in Washington of potentially another foreign policy setback.  Venezuela’s national oil company is estimated to be worth $186 billion and is the country’s economic engine. The Orinoco region, where the majority of the country’s oil is produced, contains approximately 300 billion recoverable barrels of oil and is the biggest in the world. Despite the massive energy reserves, Venezuela is spiraling towards an economic and political meltdown. The country’s political turmoil has been dragging on for years. The opposition-dominated National Assembly, the country's parliament, has been sidelined by Nicolás Maduro and his regime.Related: Protect The Oil: Trump’s Top Priority In The Middle East  Despite international sanctions and mismanagement of PDVSA, Caracas has barely been able to withstand the storm. The country’s debt, currently, is 738 percent higher than the value of its exports. Venezuela's future is in the hands of a small number of countries that own the majority of its $156 billion debt. Russia and China have the lion's share as they aim to gain more influence.  The largest part of PDVSA’s oil production is tied to debt repayments. In combination with the economic and social crises currently unfolding, this has led to a major cash flow problem which is causing a vicious economic cycle. Furthermore, the exploitation of Venezuela's Orinoco Oil Belt requires massive investments to maintain production due to its remote location. The massive brain drain and mismanagement of PDVSA has decreased the country’s oil production by 1.1 million/barrels per day since 2014.  The (partial) sale of PDVSA would create some obvious advantages to both parties. Venezuela’s massive debt burden is preventing any economic revitalization. Debt relief could alleviate financial pressure with hope for recovery. At least that's what policymakers are hoping for. Also, Caracas could count on Russian support in a region still dominated by the U.S. where military confrontation is a lingering threat. Moscow, in its turn, could strengthen its hold on the global oil market and add the world’s largest oil reserves to its growing list of assets.Related: IEA: An Oil Glut Is Looming  However, despite the rumors, it remains unclear whether Venezuela's crown jewels will be sold. First, Caracas’ debt owed to Beijing, approximately $60 billion, is far bigger than what is owed to Moscow. It would make more sense to sell it to the Chinese to receive debt relief especially as China has far greater financial capabilities. Second, the political risks are far higher than Russia can swallow if it gets entangled in the country’s political quagmire. Venezuela’s crisis is far from over and it is extremely difficult to predict its outcome. Lastly, Venezuela is not Syria. Moscow will tread carefully not to provoke the U.S. especially as an election year is looming.  Russian companies, however, will remain investing and the Kremlin will maintain its presence in the South American country. Political risks create uncertainty and chase away businesses. State-backed Russian companies, however, have political goals as well as financial ones. Risk prone investments potentially have far higher financial yields and political results if successful. Venezuela could well end up being a sound political and financial investment from Moscow’s point of view.


sottnet--2019-01-13--Saudi energy minister claims oil market on right track as OPECs largest producer slashes exports

Saudi energy minister claims oil market on 'right track' as OPEC's largest producer slashes exports

Saudi Arabia's top energy official expects the oil market to stabilize shortly, and says it's already "on the right track" after a rout in the last quarter of 2018. The statement follows Riyadh's recent commitment to OPEC cuts."If we look beyond the noise of weekly data and speculators' herd-like behavior, I remain convinced that we're on the right track, and that the oil market will quickly return to balance," Energy Minister Khalid al-Falih said at an oil conference in Abu Dhabi on Sunday, according to Reuters.The world's top crude supplier says it will continue to work with members of the Organization of the Petroleum Exporting Countries (OPEC) and others to balance the oil market and do more to achieve this goal, if necessary."[Saudi Arabia] will work with all interested producers who want to bring stability to the market... OPEC plus and anybody else who would like to do it with us," the minister told a CNBC reporter.Earlier this week, Falih said the kingdom would cut its oil exports in January by 10 percent compared to November; meeting its goal of reducing output to 10.2 million barrels per day (bpd). Riyadh is expected to reduce crude exports to 7.2 million this month and cut it further by 100,000 bpd in February.The announced cuts, which were made in compliance with a deal agreed at the cartel and allied oil producers meeting in early December, reassured the market and boosted the prices on global benchmarks, West Texas Intermediate (WTI) and Brent, to almost one month highs on Wednesday. They slightly rolled back at the end of the week, with Brent closing Friday session at $60.48 per barrel and WTI trading at $51.59.Earlier, JP Morgan warned that the oil market may face a "low price scenario, which is $55 Brent" in 2019 if the cartel members fail to stick to the plan.


sottnet--2019-05-06--Iran switches to the grey market vowing to continue selling oil despite US sanctions

Iran switches to the "grey market" vowing to continue selling oil despite US sanctions

The US earlier terminated waivers for several Iranian oil-buying countries, once again threatening them with sanctions if they continue doing business with Tehran. The Islamic Republic has slammed these actions, vowing to continue oil exports despite Washington's efforts.Iran has started directing its efforts at organising the sale of its oil via alternative routes to circumvent the effectiveness of US sanctions against the country's energy sector, Deputy Oil Minister Amir Hossein Zamaninia told IRNA news agency without specifying any details.At the same time, the deputy ministerto the US exit from the Iran nuclear deal, which lifted international sanctions from Tehran. Zamaninia didn't provide any estimates about the volumes of oil sales on the "grey market", but noted thatSpeaking about the "grey market" scheme of selling Iranian oil the deputy minister stressed that it in no way can be viewed as "smuggling" asThe US earlier ended waivers given to several states, importing Iranian crude. The waivers prevented these countries from falling under American sanctions as long as they abided by the allowed daily import limits. The decision to end these waivers has caused "regret and concern" in the EU, Foreign Policy Chief Federica Mogherini said.The waivers were given to Greece, Italy, Taiwan, China, India, Turkey, Japan, and South Korea on the same day the US imposed harsh sanctions against Iran's energy, banking and shipping sectors, 5 November 2018. The imposition of the sanctions was preceded by Washington's unilateral withdrawal from the Iran nuclear deal on 8 May 2018.Washington's move was met with criticism from other signatories to the deal, who decided to continue adhering to its provisions and to ignore the White House's sanctions.


sottnet--2019-05-20--Venezuelan oil minister Washingtons sanctions are destabilizing global oil market

Venezuelan oil minister: Washington's sanctions are destabilizing global oil market

Washington's war on Venezuela's economy undermines stability in the global market, the country's oil minister, Manuel Quevedo, told OPEC just days after the US placed him on a sanctions list alongside other Caracas officials.American sanctions generate" Quevedo said on Sunday in Saudi Arabia, ahead of a ministerial panel meeting of top OPEC and non-OPEC oil producers.The Venezuelan economy has been under extreme pressure as the White House continues efforts to place opposition leader Juan Guaido in power instead of democratically-elected President Nicolas Maduro. Keeping "all options" open to instigate regime change, the, which account for about 98 percent of the Bolivarian Republic's exports.Quevedo, the head of state-owned oil giant PDVSA, was sanctioned by the US Treasury Department last week along with four other officials for their ties to President Maduro. "We are intent on going after those facilitating Maduro's corruption and predation, including by sanctioning the President of PDVSA and others diverting assets that rightfully belong to the people of Venezuela," Treasury Secretary Steven Mnuchin said.Amid ongoing social, economic, and political instability,In a meeting with his Russian counterpart, Alexander Novak, on Sunday, Quevedo also stressed the "importance of maintaining a respectful relationship with the Russian Federation... to maintain the stability of the oil market."


sottnet--2019-07-30--Russia squeezes out Saudi Arabia in race for Asias oil market share

Russia squeezes out Saudi Arabia in race for Asia's oil market share

Last week's eruption of Urbinas volcano in Peru, as seen from space


sottnet--2019-09-17--Oil at 100 per barrel Attack on Saudi refineries could shake oil market further

Oil at $100 per barrel? Attack on Saudi refineries could shake oil market further

The drone strike on key Saudi oil facilities could stoke already-flaring tensions in the Middle East, driving crude prices higher amid growing fears of supply shortages, market and industry experts believe.The devastating attack on major Saudi oil refineries at Abqaiq and Khurais slashed the kingdom's output by 50 percent and knocked out more than five percent of global daily production. The consequences of the strikes led to uncertainty in the oil market as it's unclear when the oil giant can restore operations to normal.Analysts warn that it will take longer than had initially been thought to reopen the refineries, which were shut down after the strikes triggered massive fires there.While Saudi Aramco facilities are offline, concerns of supply shortages are only rising. Crude prices are poised to soar, but by how much has experts divided."I'm anticipating that oil prices in the near term are going to rise an additional $3 to $5 a barrel, due to the increased amount of geopolitical tensions that we've seen since this attack occurred," Lipow told RT.If the tensions grew to the point when the Strait of Hormuz were actually shut, then the oil prices could rise to $100 a barrel.However, not everyone agrees that squeezed output can push crude prices to $100. Market analyst David Madden of CMC markets argues that such a surge "is highly unlikely," but still expects oil futures to trade higher."Maybe for Brent crude oil back up towards $72 or $75 [per barrel], perhaps, or West Texas Intermediate (WTI) up to between $63-65 [per barrel] in the next few weeks is likely," Madden said in a phone interview.Saudi Arabia is the de-facto leader of OPEC, andHowever, it does not mean that OPEC and other major oil exporters will roll back the output cuts they agreed to last year to boost the market, according to the CEO of the Russian Direct Investment Fund (RDIF), Kirill Dmitriev."Geopolitical uncertainty remains in place but at this stage it is premature to make any conclusions about the OPEC+ deal," said Dmitriev. "This deal is one of the key factors behind the stability on the oil markets."Entities relying on Saudi imports can start seeking alternative supply sources, Abdessamad al-Azani, associate professor at the business and economics department of Qatar University, told Ria Novosti. In this way the US may become the main beneficiary of Saudi oil troubles."The US can become such an alternative, [US President Donald] Trump made it clear when he wrote that the shipments of oil from the Middle East are not necessary," al-Azani said.


sottnet--2019-11-01--Economic uncertainty leaves oil markets paralyzed

The Federal Reserve cut interest rates again this week, but signaled that it may be done cutting for the time being.It was the third interest rate cut this year, which marked an about-face after successive increases over the previous few years. The central bank was forced into monetary easing after the global economy showed signs of slowing down, made worse by the U.S.-China trade war.However, despite the browbeating from President Trump, Fed Chairman Jerome Powell indicated that the latest cut of 25 basis points might be the end of the line, unless things deteriorate further. "The current stance of [interest-rate] policy is likely to remain appropriate" if the economy continues on its current growth rate, Powell said.The result was something of a mixed bag for both stocks and for crude oil. The cut was widely expected for some time, so there was little suspense in the announcement.The rate reduction also comes at a time when the data on the economy is becoming more mixed, which is arguably slightly better than the more obviously negative trajectory the economy had seemed to be on only recently. U.S. GDP growth slowed in the third quarter to just 1.9 percent, down substantially from 2.9 percent a year earlier, but also a better result than some had feared.But a recent round of corporate earnings reports were better than expected , even though profits have contracted compared to a year ago. Some economists are breathing a sigh of relief, saying that the results greatly diminish the odds of a recession.Still, there are plenty of pitfalls ahead. Consumer spending has been strong, but has also begun to slow, expanding at a 2.9 percent rate in the third quarter, down from 4.6 percent in the second. "We're still in an expanding economy, but one that is expanding at a slower clip," Gregory Daco, chief U.S. economist at Oxford Economics, told the Wall Street Journal And with manufacturing actually contracting, there is still plenty of risk to the broader economy. "The danger is that businesses begin to pull back not only on capital spending but also on payrolls, which would take much of the steam out of growth in consumer spending," Richard Moody, chief economist at Regions Financial Corp., wrote in a note.That does not necessarily prevent the first phase from moving forward, which could include China purchasing American farm goods in exchange for a delay in tariffs. But it's not clear that such a modest agreement really moves the needle on global growth, which has been hindered by trade protections. Tariffs on hundreds of billions of dollars' worth of trade would presumably remain even if "phase one" goes forward."There was a lot of complacency building in around trade over the last several weeks and China is reasserting a posture saying we're not anywhere close to done," Michael Purves, CEO of Tallbacken Capital Advisors LLC, told Bloomberg on Wednesday. "That's why the market is off today and Treasuries are rallying.Oil prices slid mid-week, and fell again on Thursday on news that OPEC increased production in October, which actually shouldn't be a surprise because of the return of the Abqaiq facility after the outage in September.Still, even oil analysts say that the trade deal is one of the most important near-term variables to watch. "We have to keep an eye on the trade deal," Ashley Petersen, oil market analyst at Stratas Advisors in New York, told Bloomberg . "This is going to be a problem from the rest of the year so there's going to be more inter-week volatility to come."


sottnet--2019-11-20--Forget OPEC: China now moves the oil markets

Not so long ago, oil prices would surge or plummet on just a whisper from OPEC, who at the time held all the supply cards.When the cartel announced on November 30, 2016 , that it would cut production for the first time in eight years amid a major oil-price crisis, the market cheered. Before any cuts even happened, the sentiment alone boosted prices from a $50.74 close on that day to $54.94 at the close on December 5th, 2016.From that point on, at least up until recently, OPEC could drop the vaguest hint about production, or even think about production, and it would move the market--no fundamentals necessary.This phenomenon was still going strong in the last quarter of 2018. On December 7, 2018 , OPEC and its allies announced that they would do what they do best: rally together and withhold oil production from the market. OPEC promised to take 1.2 million barrels of oil daily off the market, sending oil prices up from $57.83 at the close on December 6th to $61.71 at the close on December 7th.By July 1, 2019 , when OPEC and allies agreed to extend production cuts for another nine months, the bling in cartel announcements had already been dulled. Not only did oil prices fail to jump, they moved in the opposite direction--not because of the OPEC cuts; rather, because the market was no longer that interested. From a closing price of $67.52 on June 28th, Brent dropped to $65.01 on July 1st, and then plummeted to $62.72 the following day.Since then, it's managed to move the needle only slightly, one way or another.... and it's not Iran, or even U.S. shale.The residual effect of the U.S. shale boom changed all that. In the aftermath of the oil-price crisis that was largely caused by massive new output in U.S. shale plays, the market began to be moved more by weekly crude inventory data estimates from the American Petroleum Institute (API) and the "official" data on the same that would follow the next day from the Energy Information Administration (EIA).Now, all those acronyms have been overshadowed in the market by the ongoing trade war, global economic data, and demand signals coming out of China.The biggest surge in oil prices this year was prompted by September 14 attack on Saudi Aramco's oil facilities, but that 15-percent surge could not be sustained as dramatic as the attacks were, and despite the fact that they took 5% of the world's oil off the market instantly.Within a day, it was clear to traders that the Saudis would get things up and running quickly, and that there would be no significant supply crisis.Attention immediately refocused on China.On September 4th , oil prices jumped over 4 percent just on Chinese economic data alone. Immediately prior to that, the market was seething with fears about a weakening global economy.It still is, but with each release of new data and indicators, it either remembers or forgets those fears all over again.On October 10th, oil hit a two-week high on sentiments that a trade war deal was within reach in the form of a 'partial' deal . The market viewed talks as the biggest breakthrough in the 18-month trade war.As it turns out, it wasn't, and oil pared its gains--again.Each time the trade war talks, the oil market listens much more closely that it listens to Iran's shooting down of a U.S. drone, or even Iraq's disintegrating into potential civil war.Certainly more than it's listening to OPEC these days. It's even listening to Trump's Twitter account more than it is the oil cartel.OPEC has lost the supply battle.No matter how long it continues with its cuts, it's not putting a dent in oversupply. And that's even with a Libyan civil war part II, crippling sanctions on Venezuela and Iran , and the most brazen attack on the world's biggest producer that one could imagine.So now, while U.S. crude inventory data can move the oil-price needle every week, more than any statements coming out of OPEC can, if you're playing oil's volatility, it's all about the trade war.


sputnik--2019-01-09--Maduro Says Discussed Oil Market Challenges With OPEC Secretary General

"I held an enjoyable and pleasant meeting with the OPEC Secretary General, Mohammed Barkindo. We talked about the challenges of the oil market for 2019," Maduro said on Twitter.  Venezuelan Petroleum Minister Manuel Quevedo said that the purpose of the meeting between Maduro and Barkindo is to discuss the work of Venezuela during the country's presidency at the OPEC conference in 2019.  It was Quevedo who replaced UAE Energy Minister Suhail Mohamed Faraj Mazrouei as president of the OPEC conference from January 1.


sputnik--2019-01-28--Venezuelan Crisis Has Zero Impact on Oil Market So Far - Saudi Energy Minister

"It’s premature, we hope for the best for Venezuelan people. The impact on the oil market so far is zero. The oil market is very steady. No action is needed to take right now," Falih said.  READ MORE: Moscow Not Planning to Have Any Contacts With Venezuela's Guaido — Kremlin  The minister added that the escalation of the crisis had not been discussed within the Organization of the Petroleum Exporting Countries (OPEC).  "No, we have not discussed [the situation in Venezuela]," Falih said.  According to OPEC statistics, Venezuela, one of the organization’s founding members, held 302.8 billion barrels in proven crude oil reserves, as of 2017, the most of any OPEC country.  Khalid Falih added that he was hoping for the oil output cuts agreed most recently by the Organization of the Petroleum Exporting Countries (OPEC) and non-cartel producers to be implemented by more than 100 percent.  "The cuts that we have discussed are in place, we have to implement them hopefully by more than 100%. We will see what happens in March or April, so let’s give it time," Falih said.  Riyadh is looking forward to a 2019 visit of Russian President Vladimir Putin and expects it to create a lot of cooperation opportunities, Khalid Falih stressed.  "In the future, there will be a lot of collaboration opportunities coming out of the discussions that lasted two years between the leaders. We are looking forward to President Putin coming and visiting the Kingdom in 2019. As we know, King Salman had a great state visit to Russia and that created a lot of opportunities. The same will happen when President Putin comes here," Falih said.  Kremlin spokesman Dmitry Peskov confirmed in early December that Putin's visit to Saudi Arabia would take place in 2019, adding that the date had yet to be agreed.  Riyadh is glad to see Russia's interest in investments in Saudi oil and gas projects and technology sectors of the economy, Falih stressed.  "We are very happy with the Russian interest in Saudi investments. We have seen a delegation come from Russia a few weeks ago and they were quite interested in investing not only in oil and gas facilities, but also in some advanced industries," Falih said.  He also expressed satisfaction that "a lot of Saudi investments" similarly go to Russia, voicing optimism about the two countries' economic cooperation.  "And, of course, there are a lot of Saudi investments outbound from the Kingdom going to Russia… The future for the Kingdom is bright, the future for Russia with all of your economic transformation and energy resources is also very good," the minister added.  Russia and Saudi Arabia have been steadily developing economic cooperation over recent years, with bilateral trade increasing almost twofold in 2017 to $915 million, and a number of investment opportunities under discussion.  In December, Russian Direct Investment Fund (RDIF) CEO Kirill Dmitriev said that around $2 billion worth of funds from a Russian-Saudi foundation would be invested in Russia in 2019. According to Dmitriev, RDIF is considering investing in the Arctic LNG 2 project together with Saudi Aramco oil giant.  Several months earlier, Falih told Rossiya 24 television channel that Saudi Aramco and Sabic, a diversified chemicals producer, were considering investing in the construction of a petrochemical plant in Russia. Falih expressed hope that the cooperation between Saudi Aramco and Russia's Sibur petrochemical company would help do this.


sputnik--2019-02-10--IMF Global Oil Market Still Unstable After 2014 Crash

IMF: Global Oil Market Still Unstable After 2014 Crash

Kristian Rouz — Managing director of the International Monetary Fund (IMF) Christine Lagarde has said that the world's major oil exporters are yet to recover from the fiscal shock dealt by the massive drop in crude prices back in 2014.  Speaking at a conference in Dubai, UAE, Lagarde said the future of the international oil market does not appear to be unequivocally bright due to a combination of upside and downside factors. Lagarde warned oil-reliant economies against ramping up budget spending, saying their oil revenue might plunge again.  The IMF chief also said that over the past few years fiscal revenue in oil-exporting countries has improved, sparking an urge to increase budget spending among several national governments. Lagarde suggested such plans should be put on hold due to the lack of clarity of whither oil prices go in the near-to-medium-term.  "Fiscal deficits are only slowly declining, despite significant reforms on both the spending and revenue sides, including the introduction of VAT and excise taxes," Lagarde said. "This has led to a sharp increase in public debt, from 13 per cent of GDP in 2013 to 33 per cent in 2018."  Lagarde's remarks come in the wake of ambitious announcements from the governments of Saudi Arabia and the UAE, which both recently unveiled massive infrastructure and modernisation projects to ease their reliance on oil. However, IMF experts believe it's not the right time just yet, suggesting fiscal consolidation could be a better option.  In the UAE, growth in the non-oil sector is expected to accelerate to 3.9 per cent this year, and to 4.2 per cent in 2020, according to the IMF. Meanwhile, experts also pointed out that a recent rebound in oil prices has supported Emirati economic growth.  However, another possible crash in oil prices could deal some damage to the UAE, where many companies are now exposed to a higher level of debt than they were prior to the 2014 bust.  "Given Dubai's large public-sector debt, staff encouraged the authorities to be prudent when implementing recent revenue-reducing measures while containing current expenditure growth and executing the planned investment efficiently," the IMF said in its report.  Moreover, the IMF chief said that the Middle East's public sector debt-to-GDP ratio increased from 64 per cent in 2008 to 85 per cent last year. Lagarde also pointed out that in many oil-exporting countries public debt exceeds 90 per cent of GDP, with very little progress on the path of easing their reliance on crude.  IMF experts also said that rising oil output in North America and the ongoing improvements in oil infrastructure, including pipelines and seaports, in the US and Canada, could suppress international crude prices in the medium-to-long-term.  Lagarde also said an expected slowdown in global economic growth could reduce the demand for oil, which could reflect negatively on fiscal revenues across the Middle East. According to the IMF, the world economy will grow 3.5 per cent this year, a downward revision by 0.2 per cent from the body's October forecast.  "Unsurprisingly, a weaker global environment has knock-on effects on the region through a variety of channels — trade, remittances, capital flows, commodity prices, and financing conditions," Lagarde said.  In this light, the IMF chief believes that oil-reliant economies should prioritise structural reforms, financed with a greater degree of transparency, cautiousness, and accountability. Lagarde also suggested oil-producing nations could use the experience of Norway and Chile, which managed to protect their fiscal spending from volatility in energy prices through prioritised investment.  IMF experts also warned that the majority of export-reliant countries — not limited to oil producers — could face negative developments on the fiscal side due to the elevated tensions in global trade, and the ongoing realignment of international supply chains.


sputnik--2019-02-26--BP Chief Calls US Market Without Brain for Renewing Record Oil Output

BP Chief Calls US ‘Market Without Brain’ for Renewing Record Oil Output

"The United States is probably the only country in the world that completely responds to market signals. It’s like a market without a brain. Nobody says this is what we will do, it just responds to price signals," Dudley said at the International Petroleum Week conference in London, when asked about US beating its record in oil production yet again and complaining of high oil prices.  READ MORE: Oil Market to Lose Almost Third of Venezuelan Crude due to US Sanctions — Report  When asked about US President Donald Trump’s recent tweet complaining of oil prices being "too high" at around $67 per barrel, Dudley argued that it could be a signal for extension of US sanctions against Iran.  "It’s amazing. I don’t tweet but I saw that. It struck me as the sort of a signal to extend Iran sanctions, but I have no idea about the insight of this," he said.  However, given the nature of shale oil, the high rate of US oil production may not continue for long, the BP chief said.  "The big question — longer-term for five, 10 years — is whether shale will continue going up, up, up or level up because of the nature of these fields that decline fast, it makes huge difference for the overall balance," he added.  India Ignores US Warning, Says It Will Continue Buying Venezuelan Oil UK oil and gas multinational BP forecasts oil prices to stand between $50 and $65 per barrel over the next 3-4 years, company CEO said.  "We plan BP's [activity based on] the price of $50-$65. That’s the planning of the company, but it could go up and down. As long as we keep our discipline, that’s how we see the future for the next 3-4 years," Dudley said at the International Petroleum Week conference in London.  For all global oil producers, prices between $50 and $70 per barrel are most convenient, according to Dudley.  "The world works well in the fairway of $50-$70 per barrel, the world can work with production in the state of balance," the group chief executive said.  On Friday, oil prices fell just below $67 per barrel after the United States hit another record in oil production by pumping 12 million barrels per day, undermining efforts of other major oil producers, including Saudi Arabia and Russia, at limiting their production to stabilize the market.  Increased US output comes just as the Organization of the Petroleum Exporting Countries (OPEC) revised down its assessment of the oil demand growth in 2019. According to OPEC's February report, oil demand growth is expected to reach about 1.24 million barrels per day, due to adjusted economic forecasts.  Sanctions against Venezuela and Iran can spur quick oil price changes and cause supply deficit, Bob Dudley said.  "If we talk about supply gap, today Venezuela is declining rapidly due to the gravity [of the crisis]. Are there, are there not sanctions on Iran? These things are more likely to move the [oil] price quite quickly and cause supply gap," Dudley said at the International Petroleum Week conference in London.  Earlier in February, the International Energy Agency (IEA) remarked that US sanctions against Venezuela were complicating exports for Caracas. Iranian oil production fell by 520,000 barrels daily in December, compared to October, amid renewed US sanctions, the IEA said last month.  In February, the IEA increased its 2019 supply growth estimates for producers that are not part of the Organization of the Petroleum Exporting Countries. The organization cited higher US production as the reason for revision.


sputnik--2019-03-01--Venezuelan Crisis Could Severely Affect Oil Market - Equatorial Guinea Minister

Sputnik: OPEC and US shale producers are scheduled to meet during the CERAWeek conference in March in Houston, Texas. Will you be there? What is the agenda of the talks?  Gabriel Mbaga Obiang Lima: I will be there. What we are telling them is the US is the biggest producer in the world, people cannot continue thinking that we are controlling the price- they are the biggest producers.  It is for their own benefit to have a stable price, so they can’t just sit and allow, especially their boss in Washington [US President Donald Trump], to do all these things.  So it’s very important that the US is collaborating with OPEC because clearly it’s not a no-program production. For us it’s really important that the US is recognizing its role, so that’s the [topic of] discussion- cooperation, exchange of information, and make them understand that it’s for their own benefit to have a stable production and stable pricing.  Sputnik: There’s been talk about the potential NOPEC legislation, as you are well aware. Is there a chance that you can discuss it as well?  Oil Market to Lose Almost Third of Venezuelan Crude due to US Sanctions - Report Gabriel Mbaga Obiang Lima: Our view is like an American saying ‘you don’t stop the party until the fat lady sings’, it’s something like that. When they pass it, then we will talk about it.  In the meantime, it’s just chat- chat. Once they pass the law, then we will have to evaluate. We do have a lot of the US investment, so it will affect us. In the meantime, I’m not going to say that we are worried.  Sputnik: Just on Monday, Trump criticized OPEC once again for making oil prices “too high” and at the same time the US pumped record amount of oil. Do you think it is reasonable that Trump is controlling the oil market by saying “this is too high”, “this is too low”?  Gabriel Mbaga Obiang Lima: Who is the No. 1 producer in the world right now? The United States. So at this moment, he has to watch his own companies in the US.  They are the ones who have to produce even more. OPEC and the rest of the producers, we don’t control internal problems. We don’t control the issue with Iran, we don’t control Venezuela, or Libya. We don’t even control The slowdown of China’s economy. So to blame everything on OPEC- it’s not fair.  Sputnik: Speaking of Venezuela, do you think the ongoing crisis will have a large impact on the global oil market?  Gabriel Mbaga Obiang Lima: It will, of course. Clearly, we want a dialogue, it is a friendly country that we do believe is very important. We don’t want violence, or any problems, because it will damage the development of the country for many years. But honestly speaking, it will have a major impact in the future for a long time.  US Wants to Crack Down on China’s Oil Interests Through Venezuela - Prof Sputnik: Still, OPEC says there’s no discussion needed between its members and non-members.  Gabriel Mbaga Obiang Lima: No, we have a scheduled April meeting and that’s what we are doing. Maybe we will discuss it.  Sputnik: So you will discuss the Venezuelan crisis after all?  Gabriel Mbaga Obiang Lima: I have not received the agenda yet, so I don’t know for sure. OPEC will discuss matters of oil and gas, nothing political.  Sputnik: Recently, it was revealed that OPEC-non-OPEC reached only 83 percent compliance rate with targeted production cuts of 1.2 million barrels per day in January. I know that Equatorial Guinea had perfect compliance, you even outdid it, but there are some countries, your neighbor Nigeria, that were not so good. How do you assess the overall compliance with cuts so far?  Gabriel Mbaga Obiang Lima: First of all, we are taking care of the situation, our compliance is mainly the result of some fields that we have being in decline. We are doing the investment to keep up the production again, so that’s the main reason we are extremely over compliant. Now about the neighbors, clearly the elections [in Nigeria] are finished.  They are the ones who have to make a decision [to cut]. We all make sacrifices and I think it’s right for everyone to make the same sacrifice. You can’t just get one that does something and the other ones to keep producing or having exceptions. So, that [low compliance rate of Nigeria] is something that will definitely be discussed in April [between OPEC and non-OPEC].  Sputnik: On Wednesday, His Excellency Saudi Energy Minister] Khalid al-Falih said there was likelihood of an extension of the oil production cut deal beyond June. But depending on fundamentals, you could also all agree to ease production limits. Do you agree with him?  Venezuelan Opposition to Get Money From US Fund Filled With Oil Money - Report Gabriel Mbaga Obiang Lima: I do agree, because there is a limit to how much we can be doing this. There is a major factor such as the US production. So if we have to leave the market to be flowing, the ones who’s going to suffer more is not just us, but also the US industry, because they create a lot of jobs. I don’t think that it’s sustainable. I do agree with him [al-Falih], that we’ll have to discuss seriously maybe ending this agreement.  Sputnik: At the upcoming meeting, will new member countries be accepted to the deal or to the organization?  Gabriel Mbaga Obiang Lima: No, at this moment OPEC organization is being fretted everywhere, so I don’t think anyone is keen to enter. In November there could be another look at it and [there] may be some interest, but in April- I don’t think so.  Sputnik: Can you share the details of an upcoming auction in April of Equatorial Guinea’s blocks?  Gabriel Mbaga Obiang Lima: There will be 22 exploration blocks and there will be 4 blocks that have discoveries. One is going to be Block R, Block B, Block Z and Block EG-23. We are very encouraged by different interest that we have.  I have a very good scoop that there is a major Russian company that is 90 percent confirmed that before the end of this year will be in Equatorial Guinea. It’s almost done. We are receiving a lot of interest, a lot of encouragement, that’s what they are saying. Personally they are interested in the blocks that have discoveries.  So it’s not going to be just exploration blocks, they will be able to send both an exploration plan and a discovery plan.  Sputnik: You were previously scheduled to visit Moscow with Equatorial Guinea’s President Teodoro Obiang Nguema Mbasogo to hold talks with Russian President Vladimir Putin. Is this visit going to take place?  Gabriel Mbaga Obiang Lima: I do have a plan to visit Moscow and take a state invitation to [President Putin] for the GECF [Gas Exporting Countries Forum] the Heads of State Summit in November.  Then we will have a state visit in October with the President to Moscow. And in November there is the summit in Equatorial Guinea.  Views and opinions expressed in this article are those of Gabriel Mbaga Obiang Lima and do not necessarily reflect those of Sputnik.


sputnik--2019-03-17--Top Iranian Official Blames US For Oil Market Volatility

Kristian Rouz — Iranian Oil Minister Bijan Zanganeh says public comments from US officials have contributed to the recent swings in international oil prices, thus rendering the energy market a more unpredictable environment.  READ MORE: India Continues Talks With US on Waiver From Iran Oil Sanctions — Official  Although the minister didn't mention any names, his comments are believed to come in response to US President Donald Trump's use of Twitter to express his sentiment regarding the state of affairs in the global energy market.  "Americans talk a lot and I advise them to talk less. They have caused tensions in the oil market for over a year now and they are responsible for it, and if this trend continues, the market will be more tense," Zanganeh said, according to the SHANA report, as quoted by Reuters.  Trump has repeatedly called on OPEC to not let oil prices dramatically increase, as rising prices push up energy costs in the US. Although the US is currently producing roughly 12 mln bpd, according to the Energy Information Administration (EIA), its imports stand at 20 mln bpd — meaning the international oil cartel still has some impact on the North American energy market.  Trump has tweeted about oil prices twice in the past several months — in February and back in December, just ahead of OPEC's policy meeting in Vienna, where the oil cartel coordinated deeper output cuts to support prices.  Meanwhile, other US officials have recently made remarks that stirred the anticipation of higher oil prices among investors. For example, State Department Representative for Iran Brian Hook said last week that the global oil supply would exceed demand by 400,000 bpd this year — likely weighing on prices. In this light, Hook said, there is room for the US to revoke its waivers for buyers of Iranian oil — with an aim to bring the Islamic Republic's oil exports under 1 mln bpd.  "Last year, when we did our waivers, it was a tight and fragile market, but we were able to successfully balance our interests," Hook said. "There are projections that supply will exceed demand, but those are projections. But we will continue to balance our national security and our economic interests."  While oil prices remain fairly high — at $67.94/bbl of Brent benchmark in London — current macroeconomic conditions would suggest that prices should be much lower. Aside from the aforementioned oversupply projections, global economic growth is slowing, suggesting weaker demand for energy down the road.  However, US plans to levy sanctions against Venezuela's state-run oil company PDVSA and Iran have been supportive of elevated fuel costs.  So far, analysts believe oil prices could go even higher. In a recent report, experts from US investment bank Goldman Sachs said Brent oil could go above $70/bbl in the coming weeks — due to a combination of political risks and macroeconomic concerns.  "We continue to believe that ongoing macro and oil demand concerns are overdone," Goldman experts wrote. "Any further meaningful rally in oil prices will likely lead to further US pressure to ease. So far, however, the ongoing OPEC ‘shock and awe' strategy has shown no signs of wavering after the latest US presidential oil tweet. "  Zanganeh, for his part, also weighed in on the upcoming review of US waivers for Iran's oil buyers. The cabinet minister said Iran is still pursuing plans to update its oil tanker fleet, and expand oil production.  "We do not know whether US waivers would be extended or not, we will do our job, but they say something new every single day," Zanganeh said.  His remarks come amid rising US exports of crude oil, a significant portion of which, some experts believe, could go to China — if Washington and Beijing strike a trade accord over the coming weeks.  China is one of the biggest importers of Iranian oil, but its state-run energy giant, China National Petroleum Corp (CNPC), recently suspended investment into oil exploration and extraction in Iran, allegedly out of concerns regarding secondary US sanctions.  Zanganeh, howevr, said Tehran is still trying to convince China to continue bilateral energy cooperation.  "Negotiations are ongoing. A senior delegation from China is due to come to Iran for talks. They have promised to come to Iran soon," Zanganeh said.  If the US waiver for China-Iran oil trade is not extended in May, and Washington and Beijing reach a trade agreement before that date, market participants expect China to become one of the largest export markets for American energy.


sputnik--2019-04-22--Saudi Arabia Pledges to Stabilise Market as US Ends Iran Oil Waivers - Minister

Saudi Energy Minister Khalid al-Falih said on Monday that Riyadh would work closely with other oil producers to guarantee an adequate crude supply and a balanced market in wake of the US decision to no longer provide waivers granted to buyers of Iranian oil.  "Saudi Arabia will coordinate with fellow oil producers to ensure adequate supplies are available to consumers while ensuring the global oil market does not go out of balance", he said in a statement.  The Trump White House announced earlier in the day that in May, it will end all waivers granted to eight economies that have allowed them to bypass US sanctions and purchase Iranian oil.  "President Donald J. Trump has decided not to reissue Significant Reduction Exceptions (SREs) when they expire in early May. This decision is intended to bring Iran's oil exports to zero, denying the regime its principal source of revenue", the statement said.  In addition, Washington announced that the US, Saudi Arabia, and the United Arab Emirates (UAE) would ensure that the global oil market would remain "adequately supplied".  The three nations "have agreed to take timely action to assure that global demand is met as all Iranian oil is removed from the market", the White House said in a statement, which was later reiterated by US President Donald Trump, who confirmed that Saudi Arabia and other OPEC members would "make up" for oil supply once the waivers are terminated.  In light of Washington's decision, oil prices have surged, reaching their highest in 2019: Internatonal benchmark Brent increased 2.6 percent to $73.87 a barrel, the highest since early November, while US crude futures rose 2.4 percent to $65.52.  Having decided to reinstate all sanctions and impose a new set of restrictions on Iran's energy, shipping, financial, and other sectors, Trump pledged to cut the country's oil exports to zero. He also pledged to introduce secondary sanctions on foreign companies doing business with Iran, which drew much criticism from other signatories to the so-called Iran nuclear deal.  Washington provided waivers to eight economies, China, India, Japan, South Korea, Italy, Greece, Turkey, and Taiwan, who agreed to reduce their purchases of Iranian oil, allowing them to continue buying it without facing sanctions for six more months.


sputnik--2019-04-30--EXCLUSIVE Saudi Oil Minister Vows to Substitute Iranian Crude Exports on Market

Sputnik: We know you will be in Moscow to co-chair an intergovernmental commission. Will you also participate in the St. Petersburg Economic Forum later in June?  Khalid Falih: Yes, my intent is to do both. I've been to the last two St. Petersburg Economic Forums, and I have found them to be quite useful, engaging, and well organised. It's always an opportunity, to not only meet with our Russian partners but to see people from around the world that are of interest to us. It's become an important global event, not just a Russian event. I intend to be there and following that we will have our intergovernmental commission on 10-11 June.  Sputnik: What documents do you plan to sign there, or are there any preparations for contracts?  Saudi Arabia Pledges to Stabilise Market as US Ends Iran Oil Waivers - Minister Khalid Falih: What we plan to do is follow up on the implementation of many existing MOUs and agreements and expedite the progress on the existing frameworks. Some of them are quite broad, and there are many sub-agreements and sub-investments under them. I think the area that of course always offers the biggest opportunities between the world's two largest energy countries will be investments in energy and chemicals. So we will be advancing these discussions and follow up on their progress.  In addition to energy collaboration, science and technology, aerospace would be one area that we'd like to explore. We hope that we will advance collaboration in agriculture, especially purchases of some products from Russia for the long-term supply of Saudi food needs. Wheat hopefully is one of them. We are still waiting for some tests to be done by some regulatory agencies, but if everything is what we expect, there will be long-term procurement actions in place. Also, another area that is very important for us is culture, cultural exchanges.  We had a number of exchanges of cultural visits between our two countries. We hope that will grow, especially, as you have observed, Saudi Arabia is establishing a lot of activities in the areas of tourism and culture, and Russia has an advancement there. We'd like to see more, and a lot of diversity, in Russia as well. There's a large Muslim population, but there are also different ethnic groups in Russia that we'd like them to come and visit the kingdom and show off the heritage, arts and performances from different Russian regions.  At the same time, we'd like to see more Saudi participation. I understand that there will be an artificial intelligence exhibit, and I understand there will be a strong Saudi delegation participating in that event. We hope that Saudi Arabia will be showcased in St. Petersburg in the month of June.  Sputnik: Talking about the situation on the world oil market, Donald Trump said he had persuaded Saudi Arabia to increase the flow. Did he or someone from Washington call your side to discuss this matter? Will the Kingdom of Saudi Arabia increase oil output?  Khalid Falih: We have issued a statement after the American statement was issued regarding sanctions. We have made it clear about two things. First of all, we will meet the demands of our customers including those customers who are substituting Iranian barrels for Saudi barrels. I'm reiterating our commitment to meet all those demands. But we will do it while also staying clearly within the OPEC Plus agreement.  We are quite comfortable that we can meet our commitments to both our customers as well to fellow producers. At the same time, we're quite comfortable that our markets are well supplied today; that there are healthy inventories and the markets are not right to be concerned.  Khalid Falih: I am in discussions with energy ministers from producers to consumers multiple times a week, including from different countries, so I cannot tell you about that specific country and the specific day, but I can confirm that our relationship with the United States is very strong.  We coordinate our energy policies, we collaborate on technology, we collaborate on efficiency, we collaborate on carbon management, we collaborate on addressing climate change, we collaborate on our views on the energy markets and the energy security. And we share our views.  Sometimes we agree, occasionally we disagree. But all in all, I think what's good for global energy markets is good for Saudi Arabia, is good for the United States, is good for Russia. Despite some political problems that may exist between countries, like between Russia and the US, the matter is what countries are pillars of the global energy markets.  It is advantageous that we have consistent policies that seek to advance global market stability and energy security for the rest of the world. And we and the kingdom have healthy relationships with both countries from an energy perspective, and we try to bring everybody together in different ways to achieve that common objective.  READ MORE: Turkey Persists In Seeking US Waiver on Iranian Oil  Sputnik: On 3 May, a waiver for Iranian oil exports to some countries will come to an end, and in this regard, may OPEC+ consider a revision of the deal?  Khalid Falih: I think any revision will happen after July, and this is what President Putin said yesterday or the day before in China. And we will meet in May in Saudi Arabia, and we will meet in June in Vienna. And during those two meetings, we will look at the market fundamentals. The market fundamentals are impacted by many factors — the global economy, supply increases from some countries, and supply disruptions from others.  It could be the same as we have today, it could be slightly different, up or down, we don't know. I think my preference will be to try to calibrate the markets so that we have balance. And we will make that decision in June when we meet.  Sputnik: But overall, how do you estimate the impact of the Iran situation on the world oil market?  Khalid Falih: I have no idea. I think Iran's exports are always not very visible. There is a lot of speculation. What is the real number of exports today and what will be the real number after sanctions are withdrawn? The only indicator I have is how much customers are asking for Saudi oil. That's the number I see. And so far, it's moderate but healthy.  So there is nothing to be concerned on the high, nothing to be concerned on the low. We are not seeing a shortage in the market. I think we will focus on inventories and try to bring it down in terms of what we look at the global production and we try to adjust by having this OPEC+ agreement from July to end of the year possibly.  Sputnik: I see. You discussed several deals with the Russian Direct Investment Fund (RDIF), including buying shares in Novomet and Eurasia Drilling. How do you estimate cooperation with RDIF, and when these two deals may be closed?  Khalid Falih: Well, first of all, we really enjoy and appreciate our relations with RDIF. It's a first-class organisation, run very professionally by world standards, and, from all the information I have seen, all of the investment proposals they have made to us and to others have been high-quality.  But at the end of the day, transactions take time, so we have been negotiating to enter Eurasia Drilling, and I understand that there are some government constraints within Russia because this is considered strategic for Russia, so we are waiting for those regulatory clearances. Novomet is a small investment, and, as I understand, we are waiting for some technical aspects to be approved. So, hopefully, soon. And we will discuss it when we come to St. Petersburg in June.  Sputnik: Have you heard about the new Russian luxury car Aurus, which was recently presented? It was designed for President Putin, and Russia is going to make the new Russian luxury car Aurus a long-term project.  Khalid Falih: No, I am not aware of it, but I would like to. If you can arrange for me to see one in St. Petersburg, I would love to. (laughs)  Sputnik: Probably, you will see it because President Putin travels in this car sometimes.  Khalid Falih: Okay. I am interested to see it. I know that Russia has great industrial powers. Of course, aviation and airspace is very strong. The industrial complex during the Soviet Union was very powerful. So I have full confidence that Russia has capabilities that are underutilised today.  And I am sure that if you want to make any product, you can make it. I am willing to buy one of these cars if I can afford them. Do you know how much they cost? (laughs).  Sputnik: The model, the features. And one more question about the OPEC+ situation. President Putin recently said in Beijing that there were no indications that somebody is going to withdraw from the deal. But this topic is being discussed among analysts. Have you heard from someone or do you have any information that this could be done by someone?  Khalid Falih: No. I think that I have heard many discussions from ministers, and the majority of them want to extend. Almost all of them want to extend. But it has to be an extension based on facts and analysis that addresses the second half of the year. Like I said, our guiding principle is to manage global inventories. Not to go too high. And we will know more in two months when we meet in June.


sputnik--2019-05-05--Iran Switching Its Oil Sales to Grey Market in Bid to Defy US Sanctions

Iran Switching Its Oil Sales to 'Grey Market' in Bid to Defy US Sanctions

Iran has started directing its efforts at organising the sale of its oil via alternative routes to circumvent the effectiveness of US sanctions against the country's energy sector, Deputy Oil Minister Amir Hossein Zamaninia told IRNA news agency without specifying any details.  "We have mobilised all of the country's resources and are selling oil in the 'grey market'", he said.  At the same time, the deputy minister admitted that the volumes from daily sales won't be able to reach the export levels seen prior to the US exit from the Iran nuclear deal, which lifted international sanctions from Tehran. Zamaninia didn't provide any estimates about the volumes of oil sales on the "grey market", but noted that the government will have to "make serious decisions about [Iran's] financial and economic management".  Speaking about the "grey market" scheme of selling Iranian oil the deputy minister stressed that it in no way can be viewed as "smuggling" as it's merely a measure to counter sanctions that are neither "just" nor "legitimate".  The US earlier ended waivers given to several states, importing Iranian crude. The waivers prevented these countries from falling under American sanctions as long as they abided by the allowed daily import limits. The decision to end these waivers has caused "regret and concern" in the EU, Foreign Policy Chief Federica Mogherini said.  The waivers were given to Greece, Italy, Taiwan, China, India, Turkey, Japan, and South Korea on the same day the US imposed harsh sanctions against Iran's energy, banking and shipping sectors, 5 November 2018. The imposition of the sanctions was preceded by Washington's unilateral withdrawal from the Iran nuclear deal on 8 May 2018.  Washington's move was met with criticism from other signatories to the deal, who decided to continue adhering to its provisions and to ignore the White House's sanctions.


sputnik--2019-05-21--Irans Black Gold a Delicacy for the Global Oil Market

Iran's 'Black Gold', a Delicacy for the Global Oil Market?

The International Energy Agency claims that in April of this year, Iran's production fell by 130,000 bpd to 2.61 million bpd. However, Manouchehr Takin, a London-based independent expert on energy security and former OPEC senior officer said that such a forecast cannot be 100% trusted:  "This problem arose during the time of Mahmoud Ahmadinejad (President of Iran from 2005 to 2013 — ed. note Sputnik) when the US announced that they would apply sanctions against Iran and that any country that buys oil from Iran will be subject to fines", Takin said.  According to him, today, while the United States declares that its embargo has reduced Iranian oil production to 1.1 million barrels per day (bpd), a number of structures monitoring oil tankers using satellite images and other sources, state a different figure for Iran's oil production, namely, 1.9 million bpd.  "On the other hand, no one knows how seriously the buyers of Iranian oil perceive the American threat. For example, China said it would continue to buy oil from Iran. The Indian government took a similar stance. China is conducting talks with the United States, whilst the conflict between the two countries has sharply escalated as a result of the trade war," Takin said adding that "during these negotiations, the two countries may even come to such a result that China, for instance, will refuse to buy Iranian oil and will demand in exchange a reduction of import tariffs on its soybeans to the United States".  The expert also noted that the IEA could only make such a forecast based on Trump's statements regarding oil purchases. Takin is convinced that, contrary to expectations and a possible decline in Iran's activity in the oil market, the price of "black gold" will not surge, and Iranian strategic energy resources might be taken "hostage" by Saudi Arabia, together with the United States:  "In contrast to Iran's expectations, this effect [of a slowdown in Iranian oil production — ed. note Sputnik] will not be very strong, because Saudi Arabia has production capacity for oil output, and the United States itself extracts shale oil. As a result of a decline in Iranian oil prices, global oil prices will rise in any case, but it must be borne in mind that Saudi Arabia can increase its output from 1.5 to 2 million bpd. The Kingdom of Saudi Arabia (KSA) has good relationships with the USA. However, we do not know how this will affect future decisions of the KSA, an OPEC member. It may, in cooperation with OPEC, refuse to increase oil production. Or it can tacitly increase its output, while even stating a decline in production. Or, maybe even officially increase oil production".  "This indicates the key role of KSA in world oil production. Then, in terms of shale oil production, it is followed by the United States. Within one year they increased the annual oil production by 1 million bpd. For the same increase in the production of oil extracted out of the ground or from the bottom of the sea, they would need 3 to 5 years", Takin concluded.  READ MORE: US-Iran Tensions: Is a US Attack Through Iraq Possible?  The views and opinions expressed by the speaker do not necessarily reflect those of Sputnik.


sputnik--2019-06-29--Prolongation of OPEC Deal Will Help Balance Global Oil Market - Saudi Energy Minister

Prolongation of OPEC+ Deal Will Help Balance Global Oil Market - Saudi Energy Minister

Earlier on Saturday, Putin said after meeting the Saudi crown prince that the two countries had agreed on a common position on the future OPEC+ deal and would support its extension with the already agreed limits on oil production for a period of six or nine months.  "During the bilateral meeting on the sidelines of the G20 summit, Russian President Vladimir Putin agreed with His Highness [Saudi] Crown Prince Mohammed Bin Salman to extend the current agreement of OPEC+ countries on reducing the production from the beginning of July, which will pave the way for the reduction of world reserves, thus helping to balance markets, restore investment to ensure future energy supplies," Falih said on Twitter.  In December 2018, OPEC and several non-cartel producers clinched an oil output cut deal, agreeing to reduce overall production by 1.2 million barrels per day starting from 2019. OPEC pledged to reduce production by 800,000 barrels per day, while non-OPEC countries agreed to reduce it by 400,000 barrels per day. The further fate of the OPEC+ agreement, including the possibility of its extension into the second half of 2019, will be determined at meetings on Monday and Tuesday in Vienna.


sputnik--2019-08-07--Bank of America Warns Chinas Purchases of Iranian Crude Could Trigger Oil Market Crash

Bank of America Warns China's Purchases of Iranian Crude Could Trigger Oil Market Crash

The unrestrained Trump-China trade war has already affected global supply chains and stock markets, but it could send oil prices falling below $30 a barrel if China decides to buy Iranian oil, warns Bank of America Merrill Lynch.  “While we retain our $60 a barrel Brent forecast for next year, we admit that a Chinese decision to reinitiate Iran crude purchases could send oil prices into a tailspin,” the Bank of America’s multinational investment division reported on Friday, according to CNBC.  The report added that the move would “undermine US foreign policy” and “cushion the negative terms-of-trade effects on the Chinese economy of rising US tariffs.”  The United States has adopted a “maximum pressure” policy against Iran, accusing the country of violating the 2015 nuclear deal and sponsoring terrorism. After quitting the landmark agreement last May, the Trump administration reimposed crippling economic sanctions against the Islamic Republic, including against its vital energy exports.  The aim was to bring Iran’s oil exports to zero, but the embattled nation says US efforts fell flat.  “The Americans have not achieved any success against Iran. They wanted to bring oil sales down to zero, but they did not succeed,” Iran’s parliament speaker Ali Larijani told lawmakers Tuesday.  According to S&P Global Platts estimates, Iranian oil exports have, in fact, not fallen to zero but still have taken a significant hit. The country is said to have shipped below 550,000 barrels per day in June 2019, as against nearly 875,000 bd in May and some 2.5 million bd last April, before Trump withdrew from the nuclear deal.  Meanwhile, the Trump administration is reportedly tracking the movement of China-linked tankers, which are suspected to be transporting Iranian crude to China in circumvention of US sanctions.  Data from ship-tracking services allegedly shows that Iranian tankers have been transporting oil to China, and to the Eastern Mediterranean, possibly to Syria and Turkey.  Last month, the US treasury sanctioned Zhuhai Zhenrong Limited, a Chinese oil trader, for importing Iranian crude. Beijing sharply criticised the move, calling it “illegal” and insisting that the company had not violated international law.  The two superpowers are locked in a year-long trade war, initially prompted by Donald Trump’s attempts to fix the yawning trade gap with Beijing, which stood at $419 billion in goods trade in 2018.  The US and China have exchanged several rounds of multi-billion tit-for-tat tariffs, and Trump last week announced an additional 10 per cent tariff on $300 billion in Chinese imports.  Beijing vowed to retaliate, just like it previously did, and asked state-owned enterprises to suspend agricultural imports from the United States.  China this week also lowered the value of its currency, the yuan, below its 7 to 1 peg against the greenback – its lowest level since 2008 – which makes Chinese goods cheaper in terms of US dollars and, therefore, more attractive to consumers.  The US Treasury accused China of ‘currency manipulation’ and pledged to complain about the move to the International Monetary Fund, but China’s central bank flatly rejected the accusations.  After the move caused stocks and crude oil to slump, China took steps to stabilise the yuan’s slide.


sputnik--2019-09-16--US Confident Oil Market to Respond Positively to Attack on Saudi Plants - Energy Chief

US Confident Oil Market to Respond ‘Positively’ to Attack on Saudi Plants - Energy Chief

"We are very confident that the market is resilient and will respond positively," Perry said in a tweet.  Oil prices soared after drones attacked Saudi oil processing facilities at Abqaiq and the Khurais over the weekend. The strikes knocked out 5.7 million barrels of daily crude production, representing 50 per cent of Saudi Arabia’s oil output and about 5 per cent of global supply.  On Saturday, an Energy Department spokesperson said the United States stood ready to deploy resources from the Strategic Petroleum Oil Reserves (SPRO) to offset any potential oil market disruptions. The official also said that Perry directed the department to work with the International Energy Agency on options for collective global action.  The SRO holds 630 million barrels maintained for exactly this purpose, an Energy Department official said over the weekend.  US President Donald Trump on Sunday said that he authorized the release of oil from the SPRO if required. Trump also said he informed appropriate US government agencies to expedite approvals of the oil pipelines currently in the permitting process in Texas and various other US states.  US officials told media that the attack was most likely launched from Iran or Iraq. However, Baghdad said Iraqi territory was not involved in the strikes. Iranian officials also denied US allegations.


tass--2019-02-14--Russias Energy Ministry sees risks for oil market due to uncertainty in Venezuela

Russia's Energy Ministry sees risks for oil market due to uncertainty in Venezuela

SOCHI, February 14. /TASS/. Russia’s Energy Ministry sees risks for the oil market due to uncertainty in Venezuela, Minister Alexander Novak said on the sidelines of the Russian investment forum on Thursday.  "That uncertainty has an impact on the market, of course. The market responds to that," he said.  According to Novak, the next meeting with the country’s oil minister may be held in Baku in March as part of the OPEC+ ministerial monitoring committee.  Crude production in Venezuela has been falling due to economic turmoil over the last several years, plunging to the lowest level in 73 years in 2018. In early 2015, oil output in the country totaled roughly 2.5 mln barrels per day with over 60 operating wells, whereas by the beginning of this year production dropped by 1 mln barrels, and the number of operating wells decreased to 50, according to the data provided by IHS. The consultancy expects crude output in Venezuela to lose another 0.4 mln barrels per day by the end of this year.  Venezuela has the world’s biggest oil reserves, while its oil sector provides 96% of the country’s revenues. However, since early 2000s, production has been experiencing a decline, which accelerated over the past several years amid falling oil prices. In 2014, when the crude price exceeded $100 per barrel, production in Venezuela totaled 2.3 mln barrels per day.  In other media


tass--2019-02-27--Venezuelan oil company calls on US to cooperate with other states for oil market stability

CARACAS, February 27. /TASS/. Venezuelan state-owned oil company PDVSA (Petroleos de Venezuela) urged the U.S. to join the efforts of a number of countries to achieve stability in the global oil market.  "The United States government must join and work together in order to achieve world oil stability," president of PDVSA and People’s Minister of Petroleum Manuel Quevedo said as quoted by a statement the company released on Wednesday.  Quevedo was speaking in Ryadh, capital of Saudi Arabia, where he is to participate in the 9th symposium on Energy Outlook sponsored by OPEC and the International Energy Agency. Venezuela chairs OPEC this year.  "To attack OPEC, to try to divide its members, to pretend to give instructions by means of social networks, is very far away from future energy perspectives," he said.  Quevedo also stressed that the actions of the White House in relation to the US-registered subsidiary of PDVSA - Citgo Petroleum "negatively affect the global hydrocarbon market".  On Tuesday, Reuters reported that Citgo had decided to cancel the status of PDVSA subsidiary. This was done not to fall under the sanctions imposed by the U.S. against Venezuela. Citgo previously announced a change in the line-up of its board of directors, following the decision of the opposition-controlled Venezuelan parliament.  Washington is not shy about the fact that it is trying to bring the maximum possible pressure on Venezuelan President Nicolas Maduro so that he would agree to hold early presidential elections. On January 28, the administration of the head of the White House, Donald Trump, imposed sanctions against PDVSA.  ## Situation in Venezuela  On January 23, the leader of Venezuela’s opposition Juan Guaido, whose appointment as parliamentary speaker had been annulled by the Supreme Court two days before that, declared himself as acting president. On the same day, the United States recognized him as acting head of state. So did the Lima Group countries except for Mexico, the Organization of American States, and a number of other countries. On January 28, Washington imposed sanctions on Venezuela’s oil company PDVSA and put some of Venezuela’s assets in US banks under Guaido’s control.  Some European countries, including Britain, Germany, Spain, the Netherlands and France on January 26 said they would recognize Guaido as interim president, if Maduro refused to call an early election within eight days. Russia, Belarus, Bolivia, Iran, China, Cuba, Nicaragua, El Salvador and Turkey came out in Maduro’s support.


tass--2019-05-19--Russias energy ministry does not rule out oil shortages on global market if demand grows

Russia’s energy ministry does not rule out oil shortages on global market if demand grows

JEDDAH, May 19. /TASS/. Russia’s energy ministry does not rule out possible oil shortages on the global market this summer if demand grows, Russian Energy Minister Alexander Novak said on Sunday after a meeting of the Joint OPEC/Non- OPEC Ministerial Monitoring Committee (JMMC).  "Oil shortages are possible in the summer is demand (for oil - TASS) grows like in previous years. Typically, it goes up on the winter period by two million barrels a day. So, it will be necessary to keep a close eye on the situation and react quickly in order to prevent shortages," he said.  Novak noted that global oil reserves within the Organization for Economic Cooperation and Development (OECD) are currently by 13 million barrels higher than the five-year average. In his words, this situation stems from several factors, including a demand lower than forecasted.  However he found it difficult to say when the market balance could be reached. "It will largely depend on the demand in the second half of the year. You know, demand typically grows in summer and drops in winter. So, let us wait and see the situation from the point of view of the summertime demand," he added.  In other media


tass--2019-06-29--OPEC deal extension to ensure oil market balance - Saudi Minister

OPEC+ deal extension to ensure oil market balance - Saudi Minister

TASS, June 29. Extending the OPEC+ oil production capping deal will balance out the situation on the energy market because it will lead to lower global carbon reserves, Saudi Energy Minister Khalid Al-Falih wrote on his official Twitter page on Saturday.  "At the bilateral meeting on the sidelines of the [G20] summit [in Osaka], Russian President Vladimir Putin and His Highness [Saudi] Crown Prince [Mohammed Bin Salman Al Saud] agreed to extend the current OPEC+ states oil production capping deal in July 2019. This will result in reduced global reserves and, therefore, will balance the markets and restore the level of investments to ensure future energy supplies," he wrote.  As the Minister pointed out, "this agreement confirms that the Saudi-Russian partnership paves the wat to ensuring interests of producers and consumers and supporting the growth of the world economy."  Vladimir Putin earlier told the G20 summit press conference that Russia and Saudi Arabia had agreed to support the extension of the OPEC+ oil production capping deal for the period of 6 or 9 months.  Russian Energy Minister Alexander Novak told reporters on Saturday that Russia’s and Saudi Arabia’s willingness to extend the reduced production in the framework of OPEC+ is a key factor of stability on the oil market amid global unpredictability.  The OPEC+ countries have been discussing the oil production policy since April this year. However, unpredictability and geopolitical factors saw the failure to reach an oil production capping agreement. The deal on reduction of oil production by 1.2 mln barrels daily, with Russia’s share of 228,000 barrels a day, was concluded in December 2018 and expires on June 30.


tass--2019-08-03--Market watchers warn about risks of oil price plunge in 2020

MOSCOW, August 3. /TASS/. Russia's oil market may face the supply glut in 2020 despite the OPEC+ deal participants’ efforts to constrain the supply growth, the International Energy Agency warned in July. That may push the oil price down, consequently, curtailing revenues of the budgets of oil-producing countries, including Russia.  Experts interviewed by TASS share those apprehensions as the market remains volatile with persisting risks of the oil price drop next year, though the crude oil futures remaining within the range of $60-$70 per barrel is still the most probable scenario so far.  The global oil market currently looks unstable and uncertain, with the US shale production on the rise, while the demand lagging behind the supply even considering the outperforming rates of the OPEC+ deal implementation, Head of the Investment Department at BCS Broker Narek Avakyan said.  Yekaterina Grushevenko, an expert at the Skolkovo Energy Center shares the opinion. "The situation with the oil supply glut will persist this year and next year. According to various estimates, it may total from 1 mln to 1.4 mln barrels per day despite the extension of the OPEC+ deal," she told TASS, adding that the US supply would rise due to increasing Permian production, as well as the continuing output growth in Brazil and a slight rise in Europe.  On the other hand, the geopolitical factor is keeping the market on tenterhooks, with any escalation in oil-producing states resulting in prices upsurge, Grushevenko explained. US-China trade wars will also affect the price volatility and supply growth in 2020, as they exacerbate negative market expectations regarding economic growth rates, she added.  The expert expects the Persian Gulf tensions to persist within a year and a half, which will contribute to a geopolitical premium for the crude price. However, a notable rise is unlikely, as the European demand will continue stagnating, same as the demand in Asian developed countries, which will not increase in the next two years, she said.  Finam Analyst Sergei Drozdov believes that the two main factors laying the groundwork for both upsurge and decrease in oil futures are tensions around Iran and the risks of global economic slowdown.  Drozdov warns about the risks of the oil price plunge in 2020 to $50 per barrel, though the prices most probably will hovering between $60 and $71 per barrel.  "A confluence of those factors (events evolving Iran and the world economic slowdown - TASS) will spur volatility on the oil market in the short run, with prices most likely staying within a short range of $60-71 per barrel by the end of 2019, though possibly falling to the $50-55 per barrel corridor in case of worsened sentiment across the global markets," he said.  Avakyan points to the threat of a potential mass-scale suspension of production or supplies of crude from the Middle East, which makes it hardly possible to project the situation on the global oil market.  "Considering the current environment, the compromise Brent price range both for consumers and producers is $60-65 per barrel so far. The recent oil leaps in both directions demonstrated that if the price dives deeper into that range producers come across profitability risks. Whereas if the price approaches $70 and above consumers get peeved, the US in the first place," he said.  Meanwhile, Grushevenko considers the $65-70 per barrel range the most realistic oil price outlook for 2020.  "Barring force majeure, the oil price fluctuations may be affected by failure to comply with the OPEC+ deal or tightening of quotas, the Persian Gulf escalation, and the talks dynamics between US and China," she suggested.


tass--2019-08-07--Washington and Riyadh agree to counter Irans attempts to destabilize global oil market

Washington and Riyadh agree to counter Iran's attempts to "destabilize" global oil market

WASHINGTON, August 7. /TASS/. US Secretary of Energy Rick Perry and Saudi Arabia's Minister of Energy, Industry and Mineral Resources Khalid Al-Falih held talks in Washington and agreed to counter Iran's attempts to "destabilize" the global oil market, the US Department of Energy said in a statement released on Tuesday.  "Secretary Perry and Minister Al-Falih reaffirmed that as two of the world's top suppliers of oil, the United States and Saudi Arabia will continue to work together to ensure that world oil markets remain well supplied to offest disruptions, especially in light of Iran's aggressive efforts to destabilize them," the document said.  Washington reimposed sanctions on Iran's oil in November 2018 after US President Donald Trump announced the decision to withdraw from the Iranian nuclear deal. The US allowed China, Greece, India, Italy, Japan, South Korea, Taiwan and Turkey to continue importing Iranian oil until 2 May 2019.


tass--2019-08-19--Tatneft Board to discuss market strategy in oil and gas chemical industry on August 26

KAZAN, August 19. /TASS/. The Board of Directors of Tatneft will discuss the new market strategy of refining and gas processing with consideration of the growing volume and quantity of new products as a result of Taneco Refinery expansion on August 26. Information about it was posted on the data disclosure website.  Tatneft plans to roll out the first stage of an oil and gas chemical complex (OGCC) construction, with Russia’s first maleic anhydride plant to be built within its framework in 2021, the oil producer told TASS earlier.  Planned production capacity of maleic anhydride will be 50,000 tonnes per year plus 25,000 tonnes per year of its derivatives. Such products are not produced in Russia so far. Maleic anhydride and its derivatives are used in making glass plastics and in the construction industry.  The first stage of the complex development also provides for the production of polypropylene with the annual output of 247,000 tonnes per year, acrylonitrile with the output of 55,000 tonnes per year, and carbon fiber with the output of 10,000 tonnes per year. The second stage provides for the construction of an ethylene plant and development of polyethylene, plastics and polystyrene clusters.


tass--2019-10-02--Black swans affect oil market more than fundamental factors Russian energy minister

'Black swans’ affect oil market more than fundamental factors — Russian energy minister

MOSCOW, October 2. /TASS/. The situation on the oil market is almost stable, though the pressure of geopolitical factors is becoming increasingly strong, which makes forecasting more difficult, Russia’s Energy Minister Alexander Novak told a session of the Russian Energy Week on Wednesday.  "Despite the fact that we witness a certain stable price movement around $60 (per barrel), we still witness no stability on the market. We feel that ‘black swans’ are floating around," he said.  "As of today ‘black swans’ are playing a fundamental role, and we should think how to offset the influence of those factors," Novak added.  The impact trade wars between countries have on oil consumption has risen over the past two years, the minister said. "That [decrease in consumption — TASS] surely offers little room for optimism about the current state and forecasts," he noted.  Oil demand is expected to rise by 1.4 mln barrels per day in 2020 compared with 2019, Novak said in an article in The Energy Policy magazine published on Wednesday. This year the demand was under the pressure of trade wars, with daily increase only equaling 1 mln barrels, he pointed out, adding that the growth in oil demand will recover next year.


tass--2019-10-02--Use of all oil market balancing mechanisms is important says Putin

Use of all oil market balancing mechanisms is important, says Putin

MOSCOW, October 2. /TASS/. It is important to apply all the mechanisms for oil market balancing with participation of all countries, Russian President Vladimir Putin said on Wednesday at the Russian Energy Week Forum.  "It is extremely important to employ all the mechanisms for market balancing subject to interests of all countries, find mutually acceptable trade-offs. The OPEC+ deal, the history’s first successful interaction of OPEC member-states and non-OPEC countries, has become a bright example of such dialog," Putin said.  Oil prices have returned to their earlier level after the spike caused by the drone attack against oil facilities of Saudi Arabia because there are no fundamental preconditions at the moment for the oil price increase, Putin said at the meeting with OPEC Secretary General Mohammed Barkindo.  "The recent large-scale attack against oil infrastructural facilities in Saudi Arabia certainly provoked the oil price hike," the Russian President said. "Nevertheless, I was confident everything would return to current figures because there are no fundamental grounds for dramatic fluctuations on the market," Putin said.


tass--2019-11-15--Putin supports continuing cooperation with OPEC on stabilizing oil market

BRASILIA, November 14. /TASS/. Russia will continue working together with OPEC to stabilize the oil market not only through output regulation but also in other spheres as well, Russian President Vladimir Putin told reporters after the BRICS summit in Brazil on Thursday.  "A constructive dialogue has been established with OPEC. We understand where this tough position [on cutting output] comes from, including the position of our friends in Saudi Arabia on Saudi Aramco IPO," Putin said. "They have their own interests, and we should respect that, which is what we are doing. When it comes to prospects for cooperation, it will not be limited to regulating output," he added.  "The system of relations between Russia, OPEC and non-OPEC countries represents an effective instrument of maintaining the balance on the global energy market that is important for everyone, both consumers and producers," he stressed.


tass--2019-11-20--Russia will continue to work with OPEC+ to stabilize oil market, says Putin

MOSCOW, November 20. /TASS/. Russia intends to continue cooperation with OPEC countries under the agreement to stabilize the global oil market, Russian President Vladimir Putin said at a plenary meeting of "Russia Calling!" investment forum.  "Russia influences the global energy market, it has a serious impact, but we achieve the greatest effect when we work together with other producers. Only coordinated steps bring the optimal effect for global energy markets. In this sense, we will continue to work with Saudi Arabia, with countries of the Persian Gulf, with the OPEC countries within the framework of the system that has been created in recent years, - OPEC+," he said.  According to Putin, Russia and OPEC+ have a common goal, despite "disputes over some minor elements". "The goal is to ensure that the market is balanced, acceptable for both producers and consumers, and, most importantly, that it is predictable," he concluded.