Russia, Saudi push for big hike in oil output despite Iran opposition

ExxonMobil’s Hebron oil platform is shown off the coast of Canada’s Newfoundland & Labrador, in this June 13, 2017 handout photo. Courtesy ExxonMobil Canada/Handout - REUTERSVIENNA/MOSCOW - 19 June 2018: Russia and Saudi Arabia are pushing OPEC and its allies to raise oil output steeply from July to meet growing demand and cover supply outages in Venezuela and Libya despite opposition from several members of the producer group including Iran.“Oil demand usually grows at the steepest pace in the third quarter ... We could face a deficit if we don’t take measures,” Russian Energy Minister Alexander Novak told reporters. Iran faces renewed U.S. sanctions that will impact its oil industry and Iraq has production constraints.Two OPEC sources told Reuters that even Saudi Arabia’s Gulf allies Kuwait and Oman were against big, immediate increases in output.One OPEC source said the Saudi-Russian proposal of a 1.5-million-bpd increase was “just a tactic” aimed at persuading fellow members to compromise on a smaller rise of around 0.5-0.7 million bpd.Saudi Arabia and its Gulf allies have the capacity to raise output. This recalls the June 2011 meeting, when OPEC was unable to agree on an increase in production to compensate for the outages ... in Libya,” Fritsch said.“That meeting ended without any joint declaration. The then Saudi Oil Minister Ali al-Naimi described it as the worst OPEC meeting of all time.”Adding to the tensions, Iran and Venezuela continued to insist that OPEC on Friday debate U.S. sanctions against the two countries, but the organization’s secretariat has rejected their requests, according to letters seen by Reuters.

Source:Libya Today

June 19, 2018 12:22 UTC

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