Say goodbye to cheap gas - Russia, Saudis offer oil output freeze

[mentalfloss]

Saudis and Russia agree oil output freeze, talks with Iran to follow

Hopefully a welcome break for Albertans.


Saudis and Russia agree oil output freeze, talks with Iran to follow

DOHA (Reuters) - Top oil exporters Russia and Saudi Arabia agreed on Tuesday to freeze output levels but said the deal was contingent on other producers joining in - a major sticking point with Iran absent from the talks and determined to raise production.

The Saudi, Russian, Qatari and Venezuelan oil ministers announced the proposal after a previously undisclosed meeting in Doha - their highest-level discussion in months on joint action to tackle a growing oversupply of crude and help prices recover from their lowest levels in more than a decade.

The Saudi minister, Ali al-Naimi, said freezing production at January levels - near record highs - was an adequate measure and he hoped other producers would adopt the plan. Venezuela's Oil Minister Eulogio Del Pino said more talks would take place with Iran and Iraq on Wednesday in Tehran.

"The reason we agreed to a potential freeze of production is simple: it is the beginning of a process which we will assess in the next few months and decide if we need other steps to stabilise and improve the market," Naimi told reporters.

"We don't want significant gyrations in prices, we don't want reduction in supply, we want to meet demand, we want a stable oil price. We have to take a step at a time," he said.

Saudis and Russia agree oil output freeze, talks with Iran to follow

 

[B00Mer]

Russia, Saudis offer oil output freeze

Russia's energy minister said on Tuesday that his country has agreed with OPEC members Saudi Arabia, Qatar and Venezuela to freeze oil production levels if other producers do the same.

The ministry quoted Energy Minister Alexander Novak announcing the decision following an unexpected, closed-door meeting involving the four countries in the Qatari capital, Doha.

The meeting reflects growing concern among major oil producers about the effects a prolonged slump in crude prices will have on their domestic economies.

Novak said the countries are willing to freeze output levels at January levels "if other oil producers join the initiative."

Getting other major oil suppliers to go along with that plan could be tricky. Prices have fallen sharply since summer 2014, leaving producers scrambling to win market share from competitors.

Oil prices rose following the meeting, with a barrel of benchmark New York crude trading up 77 cents at $30.21 US. A barrel of Brent, the international standard, gained 89 cents to $34.28 US.

Adequate step

Speaking to reporters after the meeting, Saudi Oil Minister Ali Naimi said producers would continue to assess the state of the market in the months ahead. He described freezing output at January levels was an adequate step for now.

All of the countries at the meeting except Russia are part of OPEC, which has refused to cut its official production targets in an effort to bolster faltering prices. Saudi Arabia dominates policy-making within the 13-member bloc of oil producing countries.

The aim of OPEC's keep-pumping strategy has been to attempt to ride out the 12-year lows in prices and force higher-cost producers, such as shale drillers in the U.S., out of the market.

Compliance is a challenge

Notably absent from Tuesday's meeting was Iran, which shares control of a major underwater natural gas field with Qatar. It is eager to ramp up its exports now that sanctions related to its nuclear program have been lifted, saying recently it aims to put another 500,000 barrels a day on the market.

Jason Tuvey, Middle East economist at Capital Economics, said Tuesday's agreement should help support prices. But he noted that only some OPEC members have signed on to the deal, and that compliance to the bloc's own quotas has long been a challenge for the group.

"And even if output is frozen, this will still be at extremely high levels," he added. "Saudi oil production remains close to record highs" of more than 10 million barrels a day.

Russia, Saudis offer oil output freeze - Business - CBC News

 

[petros]

That faggot in Moscow caved eh? We won another economic war against those cocksucking Soviets. Hooray.

 

[captain morgan]

They only agreed to freeze outputs to production levels from last month and this agreement is only as strong as the signing parties intentions to live up to it

Don't expect this to have any real effect on prices.

 

[mentalfloss]

Re: Saudis and Russia agree oil output freeze, talks with Iran to follow

1 hour before yours Boom Boom.


Please merge.

They only agreed to freeze outputs to production levels from last month and this agreement is only as strong as the signing parties intentions to live up to it

Don't expect this to have any real effect on prices.

There may be an uptick, but nowhere near as high as needed to save the oil industry.

 

[petros]

It's still a win.

 

[petros]

Re: Saudis and Russia agree oil output freeze, talks with Iran to follow

Please delete this one, f-ck merging to appease a whiner.

 

[captain morgan]

Sure it is, and it keeps on being a winner as long as OPEC and the Russians remain giving away huge volumes of their oil at rock bottom prices.

The resources in the ground in Western Canada and the States will still be there long after the aforementioned groups stop having a 2 for 1 sale.

Hell, the usual suspects are also getting shafted because these low prices have eliminated any momentum in the green and ecotard fields so I see it as a win-win

 

[EagleSmack]

Iran says not so fast!


Saudis and Russia agree to oil output freeze, Iran still an obstacle



https://ca.news.yahoo.com/saudis-russia-agree-oil-output-freeze-talks-iran-093738685--finance.html

 

[Ludlow]

you want cheap gas have a few burritos for lunch

 

[EagleSmack]

It's still a win.

Indeed it is.

 

[petros]

Sure it is, and it keeps on being a winner as long as OPEC and the Russians remain giving away huge volumes of their oil at rock bottom prices.

The resources in the ground in Western Canada and the States will still be there long after the aforementioned groups stop having a 2 for 1 sale.

Hell, the usual suspects are also getting shafted because these low prices have eliminated any momentum in the green and ecotard fields so I see it as a win-win

Saudis don't want it cheap and they want Assad gone from Syria.

 

[mentalfloss]

Re: Saudis and Russia agree oil output freeze, talks with Iran to follow

It was literally a few posts down when he made his thread.

It's an easy mistake, but this one should stay according to forum rules.

 

[captain morgan]

Saudis don't want it cheap and they want Assad gone from Syria.

Sure they do, but in my opinion, this low price (crude) environment is all about market share with little to do with the published 'oversupply'

I also understand that the Saudis are engaged in a conflict with Yemen that is projected to cost the billions. They are being forced to reassess their price-war strategy in light of economic concerns

 

[B00Mer]

Re: Saudis and Russia agree oil output freeze, talks with Iran to follow

Please delete this one, f-ck merging to appease a whiner.

:lol:

 

[EagleSmack]

Slow down production enough... and the N. American oil fields start pumping. Glorious!

OPEC is finished.

 

[B00Mer]

Slow down production enough... and the N. American oil fields start pumping. Glorious!

OPEC is finished.

Still say we do a false flag attack on Saudi Arabia and claim is was Iran, and create a WAR!!.. When they are finished blowing each others oil infrastructure up, oil should be $200 a barrel. :lol:

www.youtube.com/watch?v=_iKuMVqht4U

 

[petros]

Slow down production enough... and the N. American oil fields start pumping. Glorious!

OPEC is finished.

we never stopped.

 

[EagleSmack]

Still say we do a false flag attack on Saudi Arabia and claim is was Iran, and create a WAR!!.. When they are finished blowing each others oil infrastructure up, oil should be $200 a barrel. :lol:

Well Boomer I simply don't like paying $5.00 a gallon. During the recession.. our few recessions, I did not see Big Oil rushing to the aid of the people and giving them relief at the pumps or heating oil tanks. I simply can't dig up any sympathy here.

In fact, before prices started bottoming out my oil company filled up my heating oil tank in the middle of July when prices were still high. So F*** em'!

 

[petros]

You can't expect Clinton era prices at today's labour and supply costs.