OPEC Deal In Jeopardy As Russia Mulls More Output, Exports | Independent Newspapers Limited
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OPEC Deal In Jeopardy As Russia Mulls More Output, Exports

Posted: Apr 19, 2016 at 5:30 pm   /   by   /   comments (0)



Just two days after the collapse of international oil-supply talks in Doha, Russian officials said Tuesday that the country may boost both production and exports.

Output could grow by 100,000 barrels a day to 10.81 million a day in 2016, according to Deputy Energy Minister Kirill Molodtsov.

“And why not?” he said at the National Oil and Gas Forum in Moscow. “It’s possible.”

A proposal between major producers to cap oil output unraveled at talks on Sunday after Saudi Arabia said an agreement wasn’t possible without the participation of Iran. A freeze deal would have marked the first collaboration between the Organization of the Petroleum Exporting Countries and Russia in 15 years as a global glut keeps oil prices 60 percent below their 2014 high.

Russian crude exports to countries outside the Commonwealth of Independent States could grow as much as 4.3 percent to 255 million metric tons this year, or 5.11 million barrels a day, First Deputy Energy Minister Alexey Teksler said at the forum. That would mean an extra 300,000 barrels a day flooding international markets amid speculation that Middle East producers may also boost supply to keep market share.