Russia say oil market needs rebalancing
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. –
Alexander Novak sees an urgent need to ease price volatility.