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12-16-2008, 04:52 PM
OPEC Asks Russia to Cut Oil Supply by 400,000 Barrels (Update1)
By Ahmed Rouaba and Ayesha Daya
Dec. 16 (Bloomberg) -- OPEC is asking Russia and other countries outside the group to curb production by 600,000 barrels a day to reduce excess supply as demand shrinks because of the global recession.
“Russia is an important country and we expect it to reduce 400,000 barrels a day to support OPEC’s decision,” Abdalla el- Badri (http://search.bloomberg.com/search?q=Abdalla+el-%0ABadri&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1), OPEC’s secretary general, told today reporters in Oran, Algeria. Another 100,000 to 200,000 barrels a day is expected to be cut by other countries that aren’t in OPEC, el-Badri said.
Oil ministers from Saudi Arabia, Iran and Venezuela said today that the Organization of Petroleum Exporting Countries is considering a cutback of 2 million barrels a day at tomorrow’s meeting in Oran. The total reduction, including non-OPEC, could be as large as 2.6 million barrels a day, or 3 percent of world oil supply.
Russia may cut at least 300,000 barrels a day from its current production levels, said an OPEC delegate familiar with the matter, who spoke on condition of anonymity. Russian Deputy Prime Minister Igor Sechin (http://search.bloomberg.com/search?q=Igor+Sechin&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1) will attend tomorrow’s OPEC meeting, which starts at about 9:30 a.m.
Rustam Kozharov, a spokesman for the Russian delegation, declined to comment. Sechin will announce Russia’s position tomorrow, the spokesman said.
Russia produced 10 million barrels of oil a day last month, while Saudi Arabia pumped 8.8 million barrels a day of crude as well as more than 1 million barrels a day of lighter oil, according to International Energy Agency estimates.
Russia-OPEC Cooperation
Earlier today, the Russian energy ministry said it sent OPEC a draft memorandum proposing “active information exchange” and “systemic cooperation.” Russia is in talks with OPEC to achieve “stability and predictability on the oil market,” the ministry said today in an e-mailed statement.
Faced with a $100 slump in oil prices since July, OPEC has urged non-OPEC nations Russia, Mexico and Norway to help shoulder the burden of reducing supply, as they did a decade ago when crude slumped toward $10 a barrel.
Russia’s economy, built on energy and commodities, is slowing faster than other emerging markets like China and India. Russian President Dmitry Medvedev on Dec. 11 said that the country may cut oil output and participate in new and existing “suppliers organizations.” He called for Russia to “defend ourselves” in the face of a diminishing “revenue base.”
To contact the reporter on this story: Ahmed Rouaba (http://search.bloomberg.com/search?q=Ahmed+Rouaba&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1) in Oran, Algeria at arouaba@bloomberg.net (arouaba@bloomberg.net); Ayesha Daya (http://search.bloomberg.com/search?q=Ayesha+Daya&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1) in Oran, Algeria at adaya1@bloomberg.net (adaya1@bloomberg.net).
Last Updated: December 16, 2008 15:41 EST
http://www.bloomberg.com/apps/news?pid=20601087&sid=aMAjeSAdqJw4&refer=home
By Ahmed Rouaba and Ayesha Daya
Dec. 16 (Bloomberg) -- OPEC is asking Russia and other countries outside the group to curb production by 600,000 barrels a day to reduce excess supply as demand shrinks because of the global recession.
“Russia is an important country and we expect it to reduce 400,000 barrels a day to support OPEC’s decision,” Abdalla el- Badri (http://search.bloomberg.com/search?q=Abdalla+el-%0ABadri&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1), OPEC’s secretary general, told today reporters in Oran, Algeria. Another 100,000 to 200,000 barrels a day is expected to be cut by other countries that aren’t in OPEC, el-Badri said.
Oil ministers from Saudi Arabia, Iran and Venezuela said today that the Organization of Petroleum Exporting Countries is considering a cutback of 2 million barrels a day at tomorrow’s meeting in Oran. The total reduction, including non-OPEC, could be as large as 2.6 million barrels a day, or 3 percent of world oil supply.
Russia may cut at least 300,000 barrels a day from its current production levels, said an OPEC delegate familiar with the matter, who spoke on condition of anonymity. Russian Deputy Prime Minister Igor Sechin (http://search.bloomberg.com/search?q=Igor+Sechin&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1) will attend tomorrow’s OPEC meeting, which starts at about 9:30 a.m.
Rustam Kozharov, a spokesman for the Russian delegation, declined to comment. Sechin will announce Russia’s position tomorrow, the spokesman said.
Russia produced 10 million barrels of oil a day last month, while Saudi Arabia pumped 8.8 million barrels a day of crude as well as more than 1 million barrels a day of lighter oil, according to International Energy Agency estimates.
Russia-OPEC Cooperation
Earlier today, the Russian energy ministry said it sent OPEC a draft memorandum proposing “active information exchange” and “systemic cooperation.” Russia is in talks with OPEC to achieve “stability and predictability on the oil market,” the ministry said today in an e-mailed statement.
Faced with a $100 slump in oil prices since July, OPEC has urged non-OPEC nations Russia, Mexico and Norway to help shoulder the burden of reducing supply, as they did a decade ago when crude slumped toward $10 a barrel.
Russia’s economy, built on energy and commodities, is slowing faster than other emerging markets like China and India. Russian President Dmitry Medvedev on Dec. 11 said that the country may cut oil output and participate in new and existing “suppliers organizations.” He called for Russia to “defend ourselves” in the face of a diminishing “revenue base.”
To contact the reporter on this story: Ahmed Rouaba (http://search.bloomberg.com/search?q=Ahmed+Rouaba&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1) in Oran, Algeria at arouaba@bloomberg.net (arouaba@bloomberg.net); Ayesha Daya (http://search.bloomberg.com/search?q=Ayesha+Daya&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1) in Oran, Algeria at adaya1@bloomberg.net (adaya1@bloomberg.net).
Last Updated: December 16, 2008 15:41 EST
http://www.bloomberg.com/apps/news?pid=20601087&sid=aMAjeSAdqJw4&refer=home