World press on Russia's relations with OPEC (November 27, 2014)

 

World press on the Russia's relations with OPEC (November 27, 2014)"Can Vladimir Putin save Saudi Arabia's sheikhs from the glut of oil? In a world swamped with cheap, unsold crude oil, the powerful petroleum cartel needs Vladimir Putin to join it as it considers trimming production" reads the title of the article published by the Guardian."In years past the cartel did a great job keeping oil prices high and stable. But those high, steady prices also undermined Opec: it provided room for US shale-oil producers to invest in their infrastructure and create this now-gushing supply of black gold that rivals Opec. US crude oil production is at a 30-year high and growing because of the river of cheap shale. Customers could also go directly to Russia, Mexico, Norway or other oil producers who don’t belong to Opec", writes the Guardian."In the absence of real information, speculation is rife in the markets. On Monday, news reports suggested non-Opec member Russia may join in cutting its output of oil too. That buoyed oil prices. But by Wednesday, news stories backed off from the claim, and prices slipped. The problem is that if Opec raises prices, buyers of oil might run to shale producers instead. If that happens, Opec would face even larger production slashes later on", explains the newspaper.“The only way Saudi Arabia [is] going to agree to any production cut is if non-Opec members go along with the cut … The Saudis’ concern is if it comes to a production cut, they’re going to be the one that will take the brunt of the pain, and when they do, non-Opec members will fill their market share, so what’s the point?” the Guardian quotes Phil Flynn, senior market analyst at The PRICE Futures Group.

 

"Can Vladimir Putin save Saudi Arabia's sheikhs from the glut of oil? In a world swamped with cheap, unsold crude oil, the powerful petroleum cartel needs Vladimir Putin to join it as it considers trimming production" reads the title of the article published by the Guardian.

 

"In years past the cartel did a great job keeping oil prices high and stable. But those high, steady prices also undermined Opec: it provided room for US shale-oil producers to invest in their infrastructure and create this now-gushing supply of black gold that rivals Opec. US crude oil production is at a 30-year high and growing because of the river of cheap shale. Customers could also go directly to Russia, Mexico, Norway or other oil producers who don’t belong to Opec", writes the Guardian.

 

"In the absence of real information, speculation is rife in the markets. On Monday, news reports suggested non-Opec member Russia may join in cutting its output of oil too. That buoyed oil prices. But by Wednesday, news stories backed off from the claim, and prices slipped. The problem is that if Opec raises prices, buyers of oil might run to shale producers instead. If that happens, Opec would face even larger production slashes later on", explains the newspaper.

 

“The only way Saudi Arabia [is] going to agree to any production cut is if non-Opec members go along with the cut … The Saudis’ concern is if it comes to a production cut, they’re going to be the one that will take the brunt of the pain, and when they do, non-Opec members will fill their market share, so what’s the point?” the Guardian quotes Phil Flynn, senior market analyst at The PRICE Futures Group.