OPEC, Russia Said To Announce Oil Pact Extension On Nov 30

Tyler Durden's picture

Authored by Tsvetana Paraskova via OilPrice.com,

Saudi Arabia and Russia have agreed that OPEC and non-OPEC allies should announce an extension of the cuts at the highly-anticipated meeting in Vienna on November 30, Bloomberg reported on Friday, quoting people involved in the talks.

Recent OPEC/non-OPEC oil pact chatter had it that Saudi Arabia was pushing for an announcement of the cuts extension next week in Vienna, while Russia was more hesitant about telling the market on November 30 how the participants in the deal would act. Russia appeared to be stalling and playing for an announcement to be issued closer to the current expiration deadline of the deal, March 2018.

According to Bloomberg’s sources, now Russia and Saudi Arabia have agreed on the need to announce some sort of a deal next week, but Russia has insisted on additional phrasing in the extension deal that would link the size of the cuts to the state of the oil market.

While OPEC and Russia have agreed on a general framework, discussions are ongoing as to how OPEC could meet Russia’s demands, including how to include a link between the size of the cuts and the state of the rebalancing of the oil market. There are also discussions about including an option to review the pact again in early 2018, including calling a new meeting, according to Bloomberg’s sources.

As of last week, not all Russian oil companies were on board with extending the cuts, and they were said to have discussed a six-month extension with Energy Minister Alexander Novak.

Novak, for his part, said on Friday in a television interview posted on the energy ministry’s website that some 50 percent of the global oil oversupply had been erased and Brent prices had risen to an “acceptable enough” level of more than $60 a barrel.

Nevertheless, the oil market is not yet balanced and the pact needs to be extended, Novak said, adding that Russia supports an extension, and various options are being discussed.

Details will be discussed at the Vienna meeting next week, he noted. 

 

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RafterManFMJ's picture

Oh Thank God. Or, Allah!

Government needs you to pay taxes's picture

US shale oil producers say 'thanks' as they collectively target 15 million barrels per day.

peddling-fiction's picture

Russia is already calling the oil production shots and China is indexing the petroyuan.

The petrodollar is over.

Turn out the lights.

Crazy Or Not's picture

All empires rise and fall,
welcome to the fall of the West, and the dawn of the East.
In Lak'ech Ala K'in,

HominyTwin's picture

More reason for America's shale companies to drill for more oil: polluting the water table, sticking it to bond holders, and sticking it to service companies. It's what they do.

serotonindumptruck's picture

OPEC is like the cardiac patient who has essentially flatlined, and placed on life-support with minimal brain function, all because the surviving family cannot bear to lose their beloved patriarch.

Pull the plug on this artifact of obsolete technology (internal combustion engine) and allow the chips to fall where they may.

anomalous's picture

You want to see real cars vs EVs in a fair fight?
What did Elon do to piss you off?

serotonindumptruck's picture

I'm not wealthy enough to afford one of Elon's vehicles, nor do I fault the guy for introducing alternative transportation technology.

Elon Musk's biggest concern should be his desire to introduce new technology that will challenge the monopoly of Big Oil.

If Elon were to be suddenly assassinated or otherwise die under mysterious circumstances, then I can offer a viable theory as to why that happened.

Elon Musk is a threat to the Status Quo.

Tugg McFancy's picture

It's past Musk regardless of whether he blows up or not. Major european autos are already on the case. It's going there.

serotonindumptruck's picture

It's not going to "go there" completely without a fight to the death.

Musk is a pioneer, and the citizens of future civilizations will remember his name.

Tugg McFancy's picture

Chart's nonsense. US production closer to 9.4

Zepper's picture

People in general are idiots, and the people that run MSM are evil idiots(AKA TOOLS). CNN still talks about the 2016 elections and how Russia somehow brainwashed Americans etc. Yet the one thing that Russia does that is truly illegal, truly immoral, and truly wrong is price fixing the worlds #1 commodity. What a bunch of fucking tools! Enjoy $10 bucks a gallon, its only a matter of time for this cabal to be reinforced and to start fleecing everyone... And No fracking wont save anyone... thats all bullshit... those wells are more shallow that Anderson Cooper.