Monday, January 25, 2016

OPEC's Chief Wants A Russian Alliance To Stabilize Oil Prices



The Telegraph: Opec pleads for Russian alliance to smash oil speculators

"Tough times requires tough choices. It is crucial that all major producers sit down and come up with a solution," said Opec chief al-Badri

The Opec oil cartel has issued its strongest plea to date for a pact with Russia and rival producers to cut crude output and halt the collapse in prices, warning that the deepening investment slump is storing up serious trouble for the future.

Abdullah al-Badri, Opec’s secretary-general, said the cartel is ready to embrace rivals and thrash out a compromise following the 72pc crash in prices since mid-2014.

"Tough times requires tough choices. It is crucial that all major producers sit down and come up with a solution," he told a Chatham House conference in London.

Mr al-Badri said the world needs an investment blitz of $10 trillion to replace depleting oil fields and to meet extra demand of 17m barrels per day (b/d) by 2040, yet projects are being shelved at an alarming rate. A study by IHS found that investment for the years from 2015 to 2020 has been slashed by $1.8 trillion, compared to what was planned in 2014.

Read more ....

More News On OPEC

OPEC's El-Badri Calls on Global Oil Producers to Help Curb Glut -- Bloomberg
Oil prices in reverse amid Opec call -- BBC
Opec secretary general calls for talks on oil price collapse -- Financial Times
OPEC losing clout, energy chief says -- UPI
Opec Puts Pressure On Rivals Over Price Slump -- SKY News
OPEC, Russia talk of oil teamwork, but Saudi talks of investment -- Reuters
Is A Russian, OPEC Production Cut In The Making? -- Nick Cunningham, OilPrice.com
Possibility Of OPEC Cutting Oil Production Fraught With Complications -- Gaurav Sharma, Forbes
Crude's collapse: Why OPEC isn't dead yet -- Hirofumi Matsuo, Asian One

3 comments:

Jay Farquharson said...

WNU Editor,

Is Saudi crying "uncle" over their self imposed oil war?

War News Updates Editor said...

Jay. What struck me was Iran's remarks in the past few days that they are committed to pumping oil .... and not caring where the price will go. They have adopted the Saudi strategy of market share .... a concept that must be unnerving many in Riyadh seeing it now being applied against them by their "arch foe". And this is only going to get worse .... Iran ultimately wants to export a minimum of 2 million barrels of oil a day, with much of it going to China .... which is why Xi was in Iran this week.

Don Bacon said...

Telegraph has a thing about Russia, apparently.

Telegraph
Opec pleads for Russian alliance to smash oil speculators

Bloomberg
The head of the Organization of Petroleum Exporting Countries called on oil producers outside the group to assist in reducing the global oversupply, signaling once again that OPEC won’t make output cuts alone. “It is vital the market addresses the issue of the stock overhang,” Secretary-General Abdalla El-Badri said Monday at a conference in London. “It should be viewed as something OPEC and non-OPEC tackle together.”

The OPEC chief is from Libya, educated in Florida, lives in Austria. Meanwhile the Saudis do what they do, pump oil, which kills the high-cost producers, Canada and US.