Russian, Saudi energy ministers meet on G20 sidelines

Eileen GuzmanDec 03, 2018

However, the two countries have not announced any supply cuts in the near future.

"I explained to (Suarez) the results of the OPEC+ agreement on the stability of oil markets, which serves the interests of producers, consumers and investors and supports the global economy", he wrote. "And whatever is the final figure, we agreed to monitor the market situation and react to it quickly".

Brennock went on to predict that "Against this backdrop, the most likely outcome of next week's OPEC meeting is a fudge: Russian Federation and Saudi Arabia will agree to curb production, but by less than is needed to prevent a supply imbalance in early 2019".

Saudi Arabia said through its state-owned press agency that Riyadh and Moscow had held talks in Buenos Aires about "rebalancing" the oil market.

"This might be the critical breakthrough for OPEC and non-OPEC to cut", said Derek Brower, a director at consultant RS Energy Group.

IG Market Analyst, Kyle Rodday says the news post-OPEC meeting could be significant. At the opening of Brent was trading at 59,73 per barrel, up 18 cents below the closing level ($59,91). Yet the view that the oil market is oversupplied is a signal the cartel is laying the groundwork for action.

The development could lead to a possible deal in the upcoming OPEC meeting scheduled for next week in Vienna.

Oil futures reached near four years in early October, only to drop to a more year plus lows in late last week - the price of the global marker, Brent crude fell from a peak settlement of $US86.29 a barrel on October 3 to $US58.76 on November 28.

"From Argentina to Alberta, the oil market news is about supply curtailments", said Norbert Rücker, head of commodity research at Swiss bank Julius Baer. "However, there's concern that the cuts will not be big enough and also that the message may be intentionally unclear, in order not to get President Trump upset". Prior to the collapse in oil prices, the kingdom was responsive to Trump's demands.

Oil closed out its worst month since the global financial crisis a decade ago as all eyes turned to this weekend's G20 summit for signs that Saudi Arabia and Russian Federation can head off a worldwide supply glut.

The price of a barrel of Brent crude in February was $60,23 (+0,53%).

France's President Emmanuel Macron, who has faced intense protests against growing gasoline prices in his country, also called for cheaper oil at the G-20 summit.

While presumably the advisory board's recommendation buoyed analysts who are optimistic about the cartel slashing production, Stephen Brennock, oil analyst at PVM Oil Associates, stated in a research note published Friday that Russian Federation and the Saudis differ on the need for cuts, and this leaves the kingdom and allied non-OPEC producer facing its "toughest test yet" to find a compromise.

Related Articles:



« Previous article
Next article »


Popular Pages

A Chinese Scientist Created Two Genetically Modified Babies
It would be the first time scientists have changed the human germline - the genes that could be passed down for centuries to come. Prominent researchers quoted by the Associated Press called the Chinese experiment "premature" and "unconscionable".

Cowboys Defense Dominates Saints In First Half
Dallas built its lead later in the frame, closing the first quarter with a touchdown by running back Ezekiel Elliott. The drive stalled out and the Cowboys settled for a 26-yard field goal by Brett Maher.

Trump, Obama, Clinton mourn ex-president Bush
The small, oil-rich nation of Kuwait is offering its condolences for Bush, who led the 1991 Gulf War that freed it from Iraq. As they leave mementos they are reflecting on Bush's impact, and how inseparable the former President and first lady were.

Packers Fire Head Coach Mike McCarthy
The Cardinals struggled early offensively but ended up with six plays of 20 yards or longer, a lot of them in the second half. McCarthy and Don McCafferty are the only two Super Bowl-winning coaches to be fired by their teams in the middle of a season.

French President Holds Security Meeting On Yellow Vest Protests
Access to the Champs-Elysee avenue was closed to cars and strictly monitored by police with identity checks and bag inspections. Christophe Castaner, the country's interior minister, said 1,500 "agitators" were among the demonstrators.

China halts work by team on gene-edited babies
China has blocked all research by the controversial scientist responsible creating the world's first gene-edited babies. The Chinese government has also ordered an "immediate investigation" into He's claims.

Kensington Palace spokesperson takes unusual step of addressing the Meghan & Kate 'feud'
Thomas Markle, 74, is said to be "seething with anger" at "relentless criticism every time she says or does anything". There's a lot of talk about the differences in style when it comes to the two royals.

Priyanka, Nicks sangeet videos and pictures are spectacular
Nick Jonas and Priyanka Chopra are sharing glimpses into their lives as newly-weds, starting with their epic wedding celebration. On Sunday, the pair Wednesday in a Hindu ceremony at the Umaid Bhawan Palace in Jodhpur, Rajasthan, People confirmed .

Kareem Hunt Victim Goes Silent After Demanding Charges
With that said, the unnamed victim still has 18-months to bring her case to the Prosecutor's Office, before the motion expires. They talked often about leading the Chiefs together to a run of success like the franchise has never seen.

Man loses engagement ring while proposing in Times Square
The relieved couple is back in their home country now, but @NYPD will be sure to get the ring to them quickly. and safely. Then, almost 24 hours after it issued the call to arms - and nearly 19,000 retweets later - NYPD tweeted an update .