RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2017-02-02 18:45:00

OPEC, RUSSIA CUTS

OPEC, RUSSIA CUTS

REUTERS - OPEC and non-OPEC producer Russia are shielding Asia from supply cuts agreed in a landmark deal last year as they fight to protect their share of the world's biggest and fastest growing oil market.

Instead, they have reduced deliveries to Europe and the Americas as they implement a coordinated agreement to cut supply by about 1.8 million barrels per day (bpd), seeking to reduce a global supply glut and lift oil prices.

The Organization of the Petroleum Exporting Countries' (OPEC) oil supplies to Asia rose by 7 percent between November and January, to 17 million bpd, meeting two-thirds of the region's oil consumption, data from Thomson Reuters Eikon showed.

Under a deal agreed last November, OPEC pledged to cut production by around 1.2 million bpd in the first half of 2017. Other producers, including Russia, pledged to cut another 600,000 bpd.

"For OPEC, and here we mean the Mideast countries, Asia is their core and growing market," said Tushar Bansal, director at Singapore-based consultancy Ivy Global Energy. "The last thing OPEC ... would want is that as they develop newer markets outside the region, some other players like Rosneft or Venezuela increase their market share in what is their backyard."

While the OPEC and Russian cuts should eventually rebalance the market after a three-year glut, it will be slower in Asia unless regional demand picks up.

In a sign of ongoing Asian oversupply, Eikon data shows that around 30 chartered supertankers, known as Very Large Crude Carriers (VLCC), are sitting in the waters outside Asia's oil trading hub of Singapore and southern Malaysia, carrying about 55 million barrels of oil, enough to meet almost five days of Chinese demand.

Asia has been the main source of global oil demand growth for the past two decades as consumption in economically developed nations has stagnated.

Therefore, OPEC has raised its supply to Asia, and Russia has also re-routed a great chunk of its rising production toward China and the Asia-Pacific over the past decade. Russia surpassed Saudi Arabia as China's biggest supplier last year, exporting 1.05 million bpd of crude versus Saudi Arabia's 1.02 million.

The increase in Asian deliveries contrasts with OPEC's global cut of over 1 million bpd in January, surprising market watchers with a compliance rate of over 80 percent.

Russia, the world's biggest oil producer, also said it cut supplies by 100,000 bpd in January.

"Oil stocks are drawing, especially in Europe. In Asia, strong demand is tightening the market, but it will take time," said Oystein Berentsen, managing director for crude at oil trading firm Strong Petroleum in Singapore.

For the moment, data from the U.S. Energy Information Administration (EIA) suggests that global markets remain oversupplied, with around 95.8 million bpd of demand being met by 96.4 million bpd of supply.

But given the cuts and an expected demand increase of up to 1.6 million bpd this year, the global market will likely balance this year.

-----

Earlier:

RUSSIA: 

OBSERVING THE AGREEMENT 

RUSSIA'S OIL SUCCESS 

IMPORTANT FOR RUSSIA 

RUSSIA - OPEC ALLIANCE 

RUSSIA SANCTIONS FOREVERMORE

 

OPEC: 

OIL PRODUCTION CUTS 1.5 MBD 

2017: OPEC SEES STABILITY 

SAUDI CUTS OIL PRODUCTION: 486 TBD 

OPEC PRODUCTION DOWN 310 TBD 

OPEC: IMPORTANT DECISION

 

 

Tags: OPEC, RUSSIA, OIL, PRODUCTION, PRICES
Chronicle:
OPEC, RUSSIA CUTS
2023, January, 25, 10:19:00
9TH INTERNATIONAL LNG CONGRESS LNGCON 2023
9th International LNG Congress (LNGCON 2023) 6-7 March, 2023 Link to the Congress website: https://bit.ly/3tXVmr7
OPEC, RUSSIA CUTS
2023, January, 25, 10:18:00
TRANSPORTATION OIL AND GAS CONGRESS 2023 (TOGC 2023)
Transportation Oil and Gas Congress 2023 (TOGC 2023) takes place on February 20-21, 2023. The Congress brings together representatives from the whole pipeline chain and focuses on both strategic and technical issues of the oil and gas pipeline transportation.
OPEC, RUSSIA CUTS
2023, January, 25, 10:15:00
U.S. POWER GRID PROBLEMS
The significant changing consumption needs and generation patterns are causing significant concerns that existing ageing infrastructure is becoming a major source of risk to power grid safety, reliability and financial exposure and in failing to deliver power on the expected 24 x 7, we need.
OPEC, RUSSIA CUTS
2023, January, 25, 10:10:00
СПГ КОНГРЕСС РОССИЯ 2023
СПГ Конгресс Россия – это международная инвестиционная площадка, где традиционно собираются лидеры индустрии. Ежегодно в мероприятии принимают участие более 250 операторов крупно-, средне- и малотоннажных СПГ-проектов, водородных проектов, правительство и технологические лидеры СПГ-индустрии.
OPEC, RUSSIA CUTS
2023, January, 25, 10:05:00
OIL AND GAS AUTOMATION AND DIGITALIZATION 2023
Event Title: Oil and Gas Automation and Digitalization 2023 Conference Date: 03 - 04 May 2023 Event Type: In-Person Event Event Organizer: PTN Events
OPEC, RUSSIA CUTS
2023, January, 23, 12:40:53
OIL PRICE: BRENT BELOW $88, WTI BELOW $82
Brent was down 11 cents, or 0.1%, to $87.52, WTI fell 8 cents, or 0.1%, to $81.56 a barrel.
OPEC, RUSSIA CUTS
2023, January, 23, 12:35:00
EUROPEAN GAS PRICES UPDOWN
Dutch front-month futures, were 0.2% lower at €66.80 a megawatt-hour by 8:58 a.m. in Amsterdam, after rising as much as 3.1% earlier.
All Publications »