Cutting oil production, the doubts about the Russian program

Cutting oil production, the doubts about the Russian program

Editorial Staff
Share
Saudi Arabia expects to get at least 128 billion dollars from the rise in oil prices in 2017

Russia has guaranteed to cut at least 300 thousand barrels of oil per day, but more than a few analysts advance doubts as to the actual timing of the cut in output. Although in fact, in agreement with the OPEC and non-OPEC countries, Moscow has guaranteed it wishes to participate in the cartel that from January 2017 will limit crude extractions by over one million barrels per day, some recent statements by the top management of the Ministry of Energy speak of a "gradual cut". On the horizon, in fact, there may be the need for an additional agreement between the various Russian energy companies - Rosneft, Grazprom, Lukoil first and foremost - on the different levels to be cut. Beyond politics, in fact, already in the past, attitudes and readiness of companies that extract oil in Russia have contrasted with agreements reached by institutional leaders in Moscow.

And yet the agreement bodes well for historic crude oil producers. In 2017 Saudi Arabia in fact could see its revenue from oil increase by 46% thanks to rising oil prices. The estimated revenue should amount to 128 billion dollars. A prospect also confirmed by different analysts: "Revenues from crude oil are growing according to expectations, thanks to a market in the process of rebalancing. And this is a very clear sign that oil prices will reach an estimated 60 dollars per barrel over the next year," said John Sfakianakis, Director of Economic Research at the Gulf Research Center.