While Russia’s neighbors Kazakhstan and Azerbaijan favor an extension of oil production cuts because of the expiration of this month, Russia is sticking to its approach of waiting and looking for the future of the OPEC agreement.
Russian Energy Minister Alexander Novak told reporters in St. Petersburg that “We have to wait until the G-20 leaders in Japan this week, we will see that everything is discussed there and how the economic situation will develop.” The Energy Ministry is continuing to hold talks with Russian oil companies on OPEC + options, according to Novak.
Saudi Arabia has said a “rollover” is almost in bags for OPEC, “with some possible adjustments to non-OPEC countries, Russia, one of the architects of the current deal, is focusing on different views from its companies on oil prices on the benefits of co-operation, while only a week before the Organization of Oil Exporting Countries and its partners will meet in Vienna to decide whether to extend the deal.
Rosneft PJSC Russia’s largest oil producer opposes an expansion since it will count on the loss of market share in the US, but its counterparts Lukoil PJSC and Gazprom Neft PJSC are in favor of extending the deal, helped stabilize the prices unprocessed.
OPEC + needs to understand the demand for oil in the third and fourth quarters, the pace of growth in the world’s largest economies and the effects of sanctions before making a decision on the deal, Novak said.
The 20 th Summit could add more clarity. The latest dereliction of the world’s largest emerging economies in Argentina in December 2018, Russian President Vladimir Putin announced an extension of the deal in 2019 after a meeting with Arab Saudi prince Mohammed bin Salman.
While Russia is still hindering, its neighbors Kazakhstan and Azerbaijan the largest oil producers in the former Soviet Union after Russia said recent market data indicate the need for the extension of the OPEC + coalition agreement.
Azeri Energy Minister Parviz Shahbazov told reporters that “It would be nice to extend the same regime” unless something happens to change the current situation, at least that’s what he told journalists of St. Petersburg.
Repeating this point, his Kazak counterpart, Kanat Bozumbayev, said the high volatility of oil prices is “quite risky” and market data for May may suggest a postponement, with the same conditions it seems to be the case proper to do./Investing.com