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 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)