OIL MARKET BALANCE
Russia said it could take longer than it had previously forecast for the global oil market to reach a balance between demand and supply after crude prices plunged to $30 per barrel.
The country's energy minister, who said in December that the global oil market could return to a balance by the end of 2016, as long as producers do not raise output from current levels, said on Thursday this may not now happen until early 2017.
Oil prices have fallen by more than 70 percent over the last 18 months, mainly as a result of oversupply. This presents a challenge for Russia, where oil and gas sales account for more than half of its budget revenues.
"It is possible that the period of balance of demand and supply has stretched... There are some estimates that it will happen in early 2017," Novak said on the sidelines of a conference in Moscow.
Russia, a global leader in production, has been pumping oil at a post Soviet record-high of more than 10.8 million barrels per day.
Novak said that oil output and exports are likely to rise even further this year, while domestic producers - buoyed by a weaker rouble and subsequent operating cost declines - have yet to start cutting their investment programmes.
On Wednesday, Deputy Finance Minister Maxim Oreshkin said persistently low oil prices may result in the closure of some crude producing assets in Russia.
Earlier on Thursday, Novak's deputy, Kirill Molodtsov, said that Russian energy ministry officials may meet OPEC before March. It was not immediately clear at what level this possible meeting would take place.
Russia has so far refused to give in to pressure from some OPEC countries to cut oil production to support oil prices, arguing its harsh climate does not allow for a quick restart of wells once they are shut.
|December, 11, 10:25:00|
|December, 11, 10:20:00|
|December, 11, 10:15:00|
|December, 11, 10:10:00|
|December, 11, 10:05:00|
|December, 11, 10:00:00|
REUTERS - State oil company Saudi Aramco last week raised prices for all crude oil grades to Asia in January.
U.S. BLS - Total nonfarm payroll employment increased by 228,000 in November, and the unemployment rate was unchanged at 4.1 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in professional and business services, manufacturing, and health care.
Отклонение нефтегазовых доходов федерального бюджета от месячной оценки, соответствующей Федеральному закону о федеральном бюджете на 2017-2019 годы, в декабре 2017 года прогнозируется в размере +204,8 млрд руб.
“Tight oil supplies are the wild card. They have reshaped the global outlook in recent years,” observed Ayed S. Al-Qahtani, who directs the research division at the OPEC Secretariat in Vienna. “US tight oil supplies will be the most important contributor but are expected to reach their peak around 2025.”