Russia oil minister signals cooperation with Saudis on price

[webfact]

Russia oil minister signals cooperation with Saudis on price

By BRIAN ROHAN

 

CAIRO (AP) — Russia's oil minister signaled possible cooperation with Saudi Arabia at a meeting with his Gulf Arab counterparts in Riyadh on Sunday, as the kingdom seeks to convince major oil producing countries to cut production in order to increase prices.

 

After the meeting in the Saudi capital, Russian Oil Minister Alexander Novak was quoted in a ministry statement as saying that the parties had discussed specific production limits for Russia and other nations that may join the agreement, although he did not mention any figures or commitments from Moscow.

 

"We see the need to balance the market in the coming months to encourage the return of investments and the reduction of volatility," Novak said.

 

In a statement, Saudi Oil Minister Khalid Al-Falih also mentioned the need to "restore balance" to the market, where a surge in production globally has led to low prices that have weakened state coffers including that of the Saudis, currently engaged in a costly war in Yemen.

 

The Vienna-based Organization of the Petroleum Exporting Countries last month agreed to reduce daily output to between 32.5 million and 33 million barrels, sending the price of crude up about 15 percent. The cartel is seeking help from countries who are not members, such as Russia, to join in its efforts to curb supply.

 

Oil production from OPEC nations hit a record last month, although members have agreed to come up with a plan to reduce it before a meeting on Nov. 30 in Vienna, before which Novak said negotiations would continue.

 

The Russian position could signal a rare bright spot in its recent relations with Saudi Arabia. The two countries are adversaries in the Syrian civil war, with Moscow supporting President Bashar Assad and Riyadh aiding rebels who seek his overthrow. Russia is also close to Saudi nemesis Iran.

___

Associated Press writer Vladimir Isachenkov contributed from Moscow

 

-- © Associated Press 2016-10-24

[Srikcir]

6 hours ago, webfact said:

production in order to increase prices

This will put more pressure on the baht, just one of the global factors outside of BOT's influence.

[Grubster]

42 minutes ago, Srikcir said:

This will put more pressure on the baht, just one of the global factors outside of BOT's influence.

How so, I'm not disagreeing I just don't know why or how it would.

[Grubster]

Just now, Grubster said:

How so, I'm not disagreeing I just don't know why or how it would.

Also what would it do to the Pound and Dollar.

[Srikcir]

3 hours ago, Grubster said:

How so, I'm not disagreeing I just don't know why or how it would.

Rising oil prices can trigger higher cost for oil-based products that are a principal export.  Exports are already suffering from a high baht and higher oil prices will further pressure the baht to a lower exchange rate.

[Grubster]

1 hour ago, Srikcir said:

Rising oil prices can trigger higher cost for oil-based products that are a principal export.  Exports are already suffering from a high baht and higher oil prices will further pressure the baht to a lower exchange rate.

Well I guess I thought Thailand was a big importer of oil and oil based products. I hope you are right, it would sure be good for us expats here, I believe a lower baht would be good for the Thai people too, not the ones investing in foreign interests though.

[craigt3365]

Not sure this will work without Iran's cooperation?

[Chicog]

Well let's face it, Russia needs the money too.

[hawker9000]

That mini-armada they're sending down to the ME doesn't come for free, does it?   And OPEC production levels aren't doing much for Russian oil revenues.  Kind of interesting to see Russians with their hands out rather than rampaging through former Soviet territories...

 

 

 

[craigt3365]

8 hours ago, hawker9000 said:

That mini-armada they're sending down to the ME doesn't come for free, does it?   And OPEC production levels aren't doing much for Russian oil revenues.  Kind of interesting to see Russians with their hands out rather than rampaging through former Soviet territories...

 

I read a report saying Russia has 58 billion in new weapons sales due to the action in Syria. They do need cash desperately.