Rus­sia say oil mar­ket needs re­bal­anc­ing

The Myanmar Times - - International Business -

RUS­SIAN En­ergy Min­is­ter Alexan­der No­vak warned there was an “acute need” to re­bal­ance the oil mar­ket and help ease price volatil­ity, af­ter talks with the OPEC oil car­tel in Vi­enna.

“Prob­a­bly by win­ter we will see con­sid­er­able overkill of sup­ply over de­mand. There­fore there is an acute and ur­gent need to speed up the re­bal­anc­ing,” Mr No­vak told re­porters at the Vi­enna head­quar­ters of the Or­gan­i­sa­tion of the Petroleum Ex­port­ing Coun­tries (OPEC).

The meet­ing high­lighted “the im­pact that re­cent price volatil­ity and the high level of stocks have had on the in­dus­try”, the two par­ties said in a state­ment.

“In ad­di­tion, de­lib­er­a­tions con­sid­ered sce­nar­ios de­pict­ing the ef­fects that cli­mate change mit­i­ga­tion poli­cies could have on oil and en­ergy de­mand, and on in­vest­ments in the in­dus­try,” the state­ment read.

OPEC and non-mem­ber Rus­sia have held reg­u­lar meet­ings to tighten co­op­er­a­tion to bol­ster low oil prices.

Rus­sia, the world’s top crude pro­ducer along with Saudi Ara­bia, has been hit hard by the plung­ing mar­ket over the past two years.

Prices are cur­rently hov­er­ing at around US$50 per bar­rel af­ter hit­ting a 10-year low of less than $30 in Jan­uary, down from a peak of more than $100 in mid-2014.

Last month, OPEC mem­bers agreed a pre­lim­i­nary deal to cut pro­duc­tion for the first time in eight years, send­ing crude prices surg­ing.

The car­tel hopes to ham­mer out de­tails of the accord ahead of its bian­nual sum­mit in late Novem­ber.

It has in­vited Rus­sia and other key non-mem­bers for a tech­ni­cal meet­ing in Vi­enna on Oc­to­ber 28-29.

Mean­while, Brazil’s Petro­bras and France’s To­tal oil com­pa­nies have an­nounced a strate­gic al­liance for up­stream and down­stream projects.

The two cor­po­rate gi­ants were to sign a mem­o­ran­dum of un­der­stand­ing “to jointly eval­u­ate op­por­tu­ni­ties in Brazil and beyond”, Petro­bras said.

The pact fore­sees al­liances in ex­plo­ration projects, in­clud­ing in the pre­sale, deep-ocean drilling off Brazil.

The two com­pa­nies are al­ready part­ners in 15 wider con­sor­tiums, in­clud­ing nine in Brazil. –

Photo: EPA

Alexan­der No­vak sees an ur­gent need to ease price volatil­ity.

Newspapers in English

Newspapers from Myanmar

© PressReader. All rights reserved.