Wednesday, June 26, 2019
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Russia and OPEC evaluate leaving pact of pumping quotas

Caracas.- Russian Finance Minister Anton Siluanov said that his country and the Organization of the Petroleum Exporting Countries (OPEC) could decide to boost their production to fight market shares against the United States.

The official said that with this decision prices could fall as low as $ 40 per barrel, Reuters quoted.

Siluanov reiterated that oil prices can be reduced to $ 40 per barrel or even less for up to a year if the agreement to cut production is abandoned.

In this regard, the President of Russia, Vladimir Putin, informed that together with other independent producers in joint work with the Organization, they will determine the oil production capacity for the second half of 2019.

According to Putín, "the production must not stop, it must invest in the sector; otherwise, problems will arise for us and for the world energy sector, "Sputnik said.

Current measures to limit OPEC + production were reinforced in December and are valid until June.

The countries of the alliance committed to reduce their production of 1.2 million barrels per day to support the price of crude oil, AFP reported.

The agreement reached in 2016 between OPEC, which represents one third of the world's oil production, and a dozen non-member countries, including Russia, allowed the market to stabilize after the collapse of prices.

The president of the United States, Donald Trump, called on OPEC to take measures to lower prices. "Oil prices are rising too much. OPEC please (…) relax ", he tweeted in February of this year, causing a fall in prices.

Meanwhile, the sanctions imposed by the United States on PDVSA establish that starting in April, American companies and citizens will not be able to buy oil in Venezuela, an attempt by Washington to isolate the government of President Nicolás Maduro.

Venezuelan oil output fell to 732,000 b / d, according to the OPEC report in March.

The document notes that "the sustained decline in oil production in Venezuela accelerated in that month, with a fall of 28.3% compared to the level of February, to be at 732,000 b / d," EFE reported.

Within OPEC, Venezuela went from being the third producer (when pumping more than 3 million b / d) to occupy 10th place ahead of Ecuador, Congo, Gabon and Guinea.

In the opinion of Gustavo Roosen, former president of PDVSA, it is possible to raise oil production during a transitional government, after the company stopped producing more than 2,300,000 b / d since 1998.

"In the transition there is a way to raise the production of medium and light crude oil, selecting 500 engineers that are in PDVSA, that cross fields, wells, pump stations and define the state of maintenance they are in."


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