The hottest Russia said that the global production

Russia said that the global production reduction agreement may not be extended and warned of new price war risks

Russia said that the global production reduction agreement may not be extended and warned of new price war risks

March 14, 2017

[China paint information]

Rosneft said on Monday (March 13) that due to the insufficient willingness of major participating countries and the shale oil production situation in the United States, The global production reduction agreement may not be extended. At the same time, the company also warned of potential new price wars

the organization of Petroleum Exporting Countries (OPEC) reached its first internal production reduction agreement in eight years on November 30 last year, trying to reduce the oversupply that has long pressured oil prices. At the same time, on December 10 last year, 11 non OPEC oil producing countries led by Russia also joined the production reduction agreement, which will reduce production by 1.8 million barrels/day in total. As of February this year, the completion rate of OPEC production reduction has climbed to 94%

a spokesman for Rosneft said, "OPEC's production reduction agreement has proved sustainable, and the compliance rate has exceeded 90% The company pointed out that the main threat to the production reduction agreement comes from the rapid response of U.S. shale oil producers to the rise in oil prices, and the U.S. shale oil output will affect the recent oil prices

the spokesman also said, "although the long-term production reduction agreement may be 'please contact professionals in time; it is often useful' for the global economy and the oil industry, the position of major participating countries and the rebound in oil production in the United States may prevent OPEC and non OPEC oil producing countries from extending the production reduction plan until after June."

in addition, he added, "in the long run, the situation of global oil demand and the purpose of PC real-time control experimental machine will be achieved. The reduction of industrial investment in the period of ultra-low oil prices will balance the market, but there is still the risk of a resurgence of the price war."

recently, due to the continuous record high of the original 5. Renewal Service oil inventory in the United States, investors' concerns about excess supply have returned, offsetting the previous efforts of OPEC to reduce production. Oil prices have fallen by more than 8% since last Wednesday (March 8) to a three-month low. At the beginning of Asian trading on Tuesday (March 14), WTI crude oil of the United States was traded at $48.39 per barrel

the next OPEC meeting will be held in Vienna on May 25, when participants will talk about supply policy. The market hopes that this meeting can decide whether the oil production restriction will be extended to January 1 next year. OPEC Secretary General Balkin once said, "whether the OPEC meeting in may leads to an agreement to extend the production reduction of such new alloys depends on the average inventory level of five years."