Russia shoots down prospects of Opec meeting in mid-December
Moscow is unwilling to cut oil production, referring to its harsh climate, which makes it hard to restart wells
Russia yesterday poured cold water on prospects for a meeting with the Organisation of Petroleum Exporting Countries (Opec) this month, despite oil prices plunging below $40 (Dh147) per barrel.
Both Energy Minister Alexander Novak and Igor Sechin, the head of Kremlin-controlled oil firm Rosneft, said last month a meeting between independent producers and Opec was possible in mid-December.
“As of now, no meeting is expected,” a spokeswoman for the ministry said yesterday. Rosneft declined to comment.
Russia, which had initially signalled its willingness to closely cooperate with Opec, did not send a senior delegation to Vienna before the December 4 Opec meeting, as it did last year. Only Deputy Energy Minister Kirill Molodtsov, as well as the heads of Gazprom Neft and Lukoil, which are active in the Middle East, flew to Vienna for some separate meetings.
Moscow is still unwilling to cut oil production, referring to its harsh climate, which makes it hard to restart oil wells.
The Opec meeting ended in disarray as the members could not agree on any policy change.
Since then, the price of oil has plunged below $40 per barrel to trade at around $38 on Monday, close to the $35 level seen as break even by Bank of America Merrill Lynch for Russian oil producers.
In November, Russia continued extracting oil at a post-Soviet high of 10.78 million barrels per day despite weak oil prices.
Molodtsov has said Russian oil companies will trim investments next year but keep the pace of oil production growth.