Oil giants seek to restore production cooperation
The world’s top two oil exporters Saudi Arabia and Russia are seeking to reinstate their production cooperation agreement. Their last pact fell through earlier this year after only four months. The two governments are currently holding a new round of talks, Russian and Saudi sources confirmed, however a new deal is still far from being finalized, reported Reuters.
Russia's awakening oil sector has been rapidly gaining market share, causing much concern among OPEC (Organization of the Petroleum Exporting Countries) members, who seek to persuade major exporters outside the cartel—namely Russia, Mexico and Norway—to join in and restrain soaring output levels.
Russia is anticipated to emerge as an alternative to Middle East oil supplies and poised to regain its position as the world's top crude-oil producer for the first time in a decade, as OPEC member nations comply with the cartel's quotas in 2002, a Standard & Poor's report forecasted earlier this year.
Following a series of oil production cuts aimed at boosting market prices, OPEC members, who control two-thirds of the world’s oil exports, are expected to raise the cartel’s production ceiling in the fourth quarter of the year, a senior OPEC source told Platts. A final decision is expected to be taken at the organization’s September 18 meeting. — (menareport.com)
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