Saudi & Rus­sia may Dash Hopes of Other Oil Na­tions

Smaller na­tions which were look­ing for­ward to a pro­duc­tion freeze may be dis­ap­pointed due to stance of oil ma­jors

The Economic Times - - Commodities Plus -

Rakesh Upad­hyay

The ac­tions and in­ten­tions of Saudi Ara­bia and Rus­sia — the two largest oil-pro­duc­ing na­tions at­tend­ing the Doha meet­ing on April 17 — have dashed all hopes of any fruit­ful out­come. The most im­por­tant meet­ing of the last three decades, which has promised to forge new friend­ships and a new car­tel, is turn­ing out to be the big­gest farce, even be­fore the cur­tain is raised.

All of this un­der­mines the ef­forts of smaller na­tions, which were hope­ful of a pro­duc­tion freeze from the meet­ing.

In­stead, we’re look­ing at Rus­sia, whose oil pro­duc­tion is now at a 30-year high af­ter the na­tion pro­duced 10.91 mil­lion bar­rels per day (bpd) in March, ac­cord­ing to Reuters. In fact, these out­put fig­ures are sec­ond only to the record 11.47 mil­lion bpd Rus­sia pro­duced in 1987.

Saudi is also back on its non­com­mit­tal path, say­ing it will go along with the pro­duc­tion freeze if every­one else does, in­clud­ing Iran—of which there is no chance. Saudi’s deputy crown prince Mo­hammed bin Sal­man on April said: “If all coun­tries agree to freeze pro­duc- tion, we’re ready. If there is any­one that de­cides to raise their pro­duc­tion, then we won’t re­ject any op­por­tu­nity that knocks on our door.”

While oil min­is­ters from Venezuela, Nigeria and other smaller pro­duc­ers have said that they are still hope­ful that an agree­ment will be reached in Doha, Ecuador’s Oil Min­is­ter has gone a step ahead; he plans to meet his coun­ter­parts in Mex­ico and Columbia to ex­tract a com­mit­ment from them. —( From Busi­ness In­sider; copy­rights: OilPrice.com)

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