If countries do the words into action, it could potentially lead to a sharp fall in oil prices.
Russia did Wednesday clear that they are prepared to increase oil production to historic highs. Modest comes in response to Saudi Arabia in the aftermath of the failed meetings of oil cartel OPEC has threatened to dump more oil to the market.
Can increase production significantly
Russia, not OPEC member, was involved on the sidelines during Sunday’s talks in Doha. The goal was to unite to stop overproduction of oil, but after talks stranded, threatened Saudi Arabia to go the opposite way and increase production by 2 million barrels a day to 12 million barrels.
With such increase will Saudi Arabia passing Russia and become the world’s largest oil producer.
– Saudi Arabs have the ability to increase production significantly. But it has also, said Russian Energy Minister Alexander Novak told reporters during an energy conference in Moscow on Wednesday.
He said that Russia “in theory” could increase production to 12 million or even 13 million barrels per day , from the current record level of 11 million barrels.
Fearing collapse
Flamewars causing concern in other oil producing countries. Venezuelan Oil Minister Eulogio Del Pino believes the discussion has entered the wrong track and fears that oil prices could collapse if the production continues.
– We should start the discussion again. The stock is already nearing 90 percent of capacity. We can get a sharp fall in oil prices over the next few weeks, he said.
Del Pino, suggest that non-members who were present at the last OPEC meeting, may participate as observers in the next meeting in June.
Venezuela is itself a member of OPEC.
No comments:
Post a Comment