Oil Price Rise Due To ‘Weaker Dollar And Not OPEC Pact’, Says Rosneft Boss |RN

Gaurav Sharma
sevastopol rosneft                              © Reuters Sevastopol rosneft
The recent rise in oil prices is down to a weaker dollar and not ongoing efforts by Opec and selected non-Opec producers to curb crude production, according to Igor Sechin, chief executive officer of Russia’s Rosneft.

Speaking to news agency Tass on Friday (8 September), the boss of the Russian majority state-owned oil and gas giant, and close confidant of President Vladimir Putin, added the Opec deal has ‘no impact’ on the crude market.

At 12:15 pm BST, the Brent front-month futures contract was up 0.37% or 20 cents to $54.69 per barrel, comfortably above the psychological $50 level.

“The Americans support their shale oil producers through dollar depreciation. I believe that the Opec deal has no impact on the market, it is the dollar devaluation,” Sechin remarked.

On 25 May, Opec and 10 non-Opec producers, including Russia, decided to extend their 1.8 million barrels per day headline output cut to March 2018. Opec is scheduled to meet next on 30 November at its Secretariat in Vienna, Austria, amid market speculation that the deal might well be rolled over again for another six months.

However, Sechin said it would all depend on Opec heavyweight Saudi Arabia, and Riyadh’s plans to list a minority stake in state oil behemoth Saudi Aramco.

“If it [Saudi Arabio] goes for the listing, they will be interested in higher prices and will probably encourage their Opec partners to extend it. If they don’t, they will be less interested.”              (International Business Times)

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Oil Price Hits 18-month High AT $58.37 |The Republican News

Our Reporter

Oil price hits 18-month high at $58.37

Oil prices hit 18-month highs yesterday, the first trading day of 2017, buoyed by hopes that a deal between Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC members to cut production, which kicked in on Sunday, will drain a global supply glut.

Benchmark Brent sweet crude jumped more than two per cent to a high of 58.37 dollars, up 1.55 dollars a barrel, the highest since July 2015.

U.S. light crude oil hit an 18-month high of 55.24 dollars up 1.52 dollars a barrel, also its highest since July 2015.

January 1, 2016, marked the official start of a deal agreed by OPEC and other non-OPEC exporters such as Russia to reduce output by almost 1.8 million barrels per day (bpd).

“First signals suggest the OPEC and non-OPEC production cuts are raising hopes that the global oil oversupply will diminish,” said Hans van Cleef, senior energy economist at ABN AMRO Bank N.V. in Amsterdam, Ric Spooner, chief market analyst at CMC Markets, agreed:

“Markets will be looking for anecdotal evidence for production cuts,” he said.

Libya and Nigeria were exempted by OPEC from the output cuts. Libya has increased its production to 685,000 bpd, from around 600,000 bpd in December, an official at the National Oil Corporation said on Sunday.

Nigeria’s crude oil output also increased by 252,800 bpd in January up from 1.697 million barrels per day in December, to 1.949 million bpd due to reduced attacks on oil facilities by the Niger Delta militants.

The production is expected to be ramped up to 2.2 million bpd within the year.

Non-OPEC Middle Eastern oil producer, Oman, told customers last week that it would cut its crude oil term allocation volumes by five per cent in March.

However, non-OPEC Russia’s oil production in December remained unchanged at 11.21 million bpd, near a 30-year high, but it was preparing to cut output by 300,000 bpd in the first half of 2017 in its contribution to the accord.

A breakdown of the agreed oil production adjustment showed that Saudi Arabia is expected to make the largest contribution by cutting production by 486,000 bpd, Algeria 50,000 bpd; Angola, 87,000; Ecuador, 26,000; Gabon, 9,000; Iran, 90,000; Iraq, 210,000; Kuwait, 131,000; Qatar, 30,000; UAE, 139,000 and Venezuela by 95,000. (The Nation)

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