Posted on 10/05/2015 5:13:52 AM PDT by thackney
Russia is ready to meet with members of the Organization of Petroleum-Exporting Countries (OPEC) -- as well as non-member oil producers -- to discuss the situation facing global oil markets, according to the country's oil minister.
Alluding to a possible meeting with the 12-member oil producer group OPEC, Energy Minister Alexander Novak said Saturday "if such consultations are to happen, we are ready to take part," Reuters reported, although he did not say when and if such a meeting may take place.
In addition, he told reporters that a meeting between officials from Russia and Saudi Arabia was being planned for the end of the month to discuss energy issues and other projects.
Following the report, oil prices rose on Monday. Benchmark Brent crude was trading 70 cents higher at $48.72 a barrel Monday morning after ending up 44 cents on Friday. U.S. crude was 57 cents higher at $46.11 a barrel after settling up 80 cents.
Asked whether any meeting between Russia and OPEC could occur in the forthcoming months, the organization would not make any official comment, but the Russian and Saudi Arabian energy ministries were preparing remarks for CNBC.
The comments seem to contradict one of Novak's energy ministry colleagues, however, who said on Friday that he was not aware of any such meetings and that Russia would stick with its plans not to cooperate with OPEC.
Russia's economy has not only been hit hard with the fall in oil price. International sanctions imposed on the country for its annexation of Crimea and role in the pro-Russian uprising in Ukraine have also seen it isolated from the world stage in terms of exports.
(Excerpt) Read more at cnbc.com ...
Because low oil prices is killing Russia’s revenue, since they are a backwards country with not much going on but that. I doubt the Saudis will comply, as they’re more interested in crushing rivals right now than lowering output.
...Russia refused to cooperate with OPEC last November in a move to defend its market share. Lack of storage and harsh weather conditions also limit Moscow’s ability to cut its exports, officials say.
Cash-strapped OPEC-member Venezuela has for months been pushing for an emergency OPEC meeting with Russia to stem the tumble in prices. OPEC next plans to meet in December for a regular review in production quotas, unchanged since last year...
Novak also said proposals on taxation and export duties for the oil industry from Russia’s Finance Ministry could lead to Russia losing between 7 to 10 million tonnes in output next year.
Russia is expected to produce 525 million tonnes or 10.5 million barrels per day (bpd) next year, Novak said.
Russian oil output is near post-Soviet highs of about 10.7 million barrels a day. The country has proven resistant to low oil prices as a weak rouble has offset losses and made domestic oil production one of the cheapest globally in dollar terms...
THIS year however, OPEC has a good shot at aligning itself against the USA’s burgeoning Natgas industry
....Obama weakens America. Russia fills the vacuum.
Good. The world needs $70+ oil.
Not to mention those all important dividends from oil/gas stocks.
[and 85-90% of the world's Muslims are Sunni, IOW, Shiites kill twice as many per capita]
and now we see the reason fro Russia’s ‘intervention’ into the ME.
It was always about their own power and money, not some humanitarian thing.
“Good. The world needs $70+ oil.”
Any why is that?
Seems you are vested in a particular commodity rather than the good of humanity.
If the world had oil selling at $1, would that not mean a better standard of living for the billions on the earth, not to mention the diminished power of those in the ME which mean to kill us?
So much for the “free market”
The oil market is so rigged!
Talking about a meeting is a far cry from actually cutting production.
The willingness to cut their own production and trust others to do the same as prices rise is unlikely, in my opinion.
$65 to 70 Dollar oil puts all out shale plays back in business and it would still crushes Russia and Venezuela.
http://www.businessinsider.com/break-even-oil-prices-for-all-the-major-producers-in-the-world-2015-7
“Libya needs the highest price, above $180/barrel, to break even. Qatar can get by with oil below $80/barrel. Russia and Saudi Arabia’s break-even prices are both around $105/barrel, and Iran’s is nearly $130.”
Not all but most.
Dunn County has the lowest break-even oil production costs, bringing more stability to the county during a time of uncertain oil prices.
Calculations by the North Dakota Department of Mineral Resources show that total revenues overtake production costs at $24 per barrel in the county. By comparison, McKenzie County was listed at $27 per barrel, Williams County at $38 per barrel, and Stark County at $41 per barrel.
The highest break-even costs calculated were in Bowman, Slope, Bottineau and Renville counties, all of which were listed at $85 per barrel.
- See more at: http://www.prairiebizmag.com/event/article/id/24795/#sthash.1w61Dzse.dpuf
The good of humanity?
Have you seen Venezuela lately? How about Norway and other nations that depend on oil revenues to provide humanitarian services?
Have you taken note of the thousands upon thousands of people now out of work since the precipitous drop in oil? Not to mention the fallout in local economies in oil (including fracking)producing states.
I’m sure you know banks pay almost no interest for savings accounts or CD’s. How can people, not the least of which retirees, get a low risk return on savings? They must switch to dividend paying stocks, of which oil and gas are one of the top choices for a low risk return.
Insurance companies and pension funds depend on interest and dividends to make good on promises to those who entrusted them with their hard earned money. Interest, including low risk corporate and government bonds pay very little. So they turn to dividends.
I realize that lower prices at the pump is good for individual consumers and lowers the cost of delivery trucks among other benefits.
But humanity, since you brought it up, is better served, at this juncture, by higher prices (not too high, obviously).
Inexpensive energy is the root of an economy... period. Everything else is bad judgement and wishful thinking, which leads to people suffering. Beggar thy neighbor seems the current business model.
“But humanity, since you brought it up, is better served, at this juncture, by higher prices (not too high, obviously).”
Sorry, but you are completely wrong.
Humanity constitutes people, whereas you are referencing countries.
No one in their right mind would ever claim that people are better served by paying more money out of their pocket for energy.
Their is no convincing argument you could ever make that says otherwise.
The energy sector will be demolished for sure(and I am a +40 year veteran of that) but so what? If energy was as free as the air we breather, people in this world would be immensely benefited.
“$65 to 70 Dollar oil puts all out shale plays back in business and it would still crushes Russia and Venezuela.”
Being this all-encompassing on any area is really risky and wrong.
Each and every play has non-core, core and very core pockets where the breakeven costs vary.
In the Bakken, there are areas which are far, far below a breakeven like $65/bbl, even lower than the generic that thackney quoted.
What are countries made up of, wise guy, but people.
Who depends on dividends for savings and retirement but people?
Who works jobs in the energy and related sectors but people?
Think before you type.
‘Inexpensive’ is a relative term.
Decades ago $10/bbl was outrageous. When oil was north of $130/bbl in 2007, $90 oil seemed like a bargain.
It’s not the level of prices so much, but the stability of prices that makes for healthy economy.
Those are really rabid answers as people are one thing, and countries completely something else.
Better follow what God told us prior to do something you will really regret.
Matthew 22:36-40New International Version (NIV)
36 “Teacher, which is the greatest commandment in the Law?”
37 Jesus replied: “‘Love the Lord your God with all your heart and with all your soul and with all your mind.’[a] 38 This is the first and greatest commandment. 39 And the second is like it: ‘Love your neighbor as yourself.’[b] 40 All the Law and the Prophets hang on these two commandments.”
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