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2018-02-27 14:00:00

OPEC - RUSSIA COOPERATION

OPEC - RUSSIA COOPERATION

PLATTS - A permanent alliance with Russia and other allies would be aimed at ensuring enough upstream investment in the oil industry to meet growing demand, UAE energy minister Suhail al-Mazrouei said Thursday.

"In the medium to longer term, our worry is to ensure we have enough capital investments coming to E&P and to assure we will have enough supply," he said at the International Petroleum Week conference in London.

OPEC is drafting an agreement to codify oil market management policy with Russia and nine other allies, beyond their 1.8 million b/d supply cut agreement that expires at the end of 2018.

Such an agreement could include continued cuts, Mazrouei said, but the overarching priority is to encourage investments in new reservoirs and production capacity to avoid a supply squeeze.

The pact could promote greater intra-coalition investments in projects, the minister suggested.

"I think we are seeing more cooperation, and my hope is that this group of OPEC and non-OPEC will incentivize the adequate investments among themselves to ensure we have adequate supply in the market," he said. "My worry is not an oversupply. My worry is an undersupply. Everyone is expecting that we will have more demand coming in the future."

Mazrouei declined to say when this draft agreement would be finalized, other than to express that he hopes it can be signed and delivered by the end of the year, when his stint in the rotating OPEC presidency will conclude.

As for the current output cut agreement, Mazrouei said there was no talk of an early exit from the deal, given that OECD commercial inventories remain some 75 million barrels above the target five-year average, according to OPEC's analysis.

"That mission is not yet completed," he said. "This is the task of today. The task of tomorrow is going to be to assure the world that we will have adequate supply."

The six-country monitoring committee overseeing the deal said that the 24-member OPEC/non-OPEC coalition's compliance with its required cuts under the deal was a record 133% in January.

The committee, chaired by Saudi energy minister Khalid al-Falih, "expressed satisfaction with the overall results, but noted the recent market volatility, stressing the importance of vigilance and the need to avoid complacency."

 

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Earlier:

 RUSSIA - OPEC RELATIONSHIP
2018, February, 14, 10:10:00

RUSSIA - OPEC RELATIONSHIP

PLATTS - "We understand that global demand for oil will continue to grow rapidly and this demand will need to be met, so we will likely need to work together, including on upstream technology and joint projects to meet this growing demand," Novak said.

 

 OPEC'S OIL DEMAND: 32.86 MBD
2018, February, 14, 10:00:00

OPEC'S OIL DEMAND: 32.86 MBD

PLATTS - As a result, demand for OPEC crude will average 32.86 million b/d in 2018, the organization calculated.

 

 OPEC MARKET MANAGEMENT
2018, January, 24, 12:05:00

OPEC MARKET MANAGEMENT

PLATTS - "We need to see the confidence level of investors within the companies and financial community improving about the long-term prospects of the market, and that is why my guidance to my colleagues is that we should not limit our efforts to 2018," Saudi Energy Minister Khalid al-Falih said, just before he chaired a monitoring committee meeting in Oman.

 

 OPEC'S CONSTRUCTIVE ROLE
2018, January, 22, 08:40:00

OPEC'S CONSTRUCTIVE ROLE

OPEC - HH Sheikh Sabah praised all 24 participating countries, both OPEC and non-OPEC, for their joint efforts towards restoring much needed oil market stability, as well as keeping faith in the collaborative approach which is at the heart of the ‘Declaration of Cooperation’.

 

 OPEC'S TRIUMPH
2017, December, 29, 11:35:00

OPEC'S TRIUMPH

PLATTS - The issuance of a combined 2.8 million b/d cap on formerly exempt members Libya and Nigeria at the organization's November 30 meeting means that OPEC as a whole now has a notional collective ceiling of 32.74 million b/d, when all the members' quotas are added up. From January-November, compliance was 108% according to S&P Global Platts, one of the six secondary sources used by the organization to monitor output.

 

 INEVITABLE OIL CHANGES
2017, December, 18, 12:35:00

INEVITABLE OIL CHANGES

OPEC - Sustainable oil market stability is crucial to attract the level of investment necessary for future demand growth; In the longer term, oil will remain a vital and integral part of the energy mix; Global energy and oil demand will grow in the long term;

 

 SAUDIS & RUSSIA LEADERSHIP
2017, December, 1, 12:55:00

SAUDIS & RUSSIA LEADERSHIP

PLATTS - Saudi Arabia reasserted its leadership of the oil market Thursday after brokering its desired extension of output cuts with OPEC and non-OPEC partners through to the end of 2018. The deal -- agreed after nearly nine hours of negotiations in Vienna -- kept its new ally Russia onside and prevented a sell-off that many analysts had feared.

 

 

Tags: OPEC, RUSSIA, OIL