Alexander Djukov, chairman of Russia’s 3rd largest oil company, Gazprom Neft, said in Moscow on the 17th that OPEC and its partners should start increasing oil production to maintain adequate market supply and reasonable prices. The statement echoes Moscow’s reluctance to agree to extend Saudi Arabia’s earlier cuts.
| Melamine |
Mr. Djukov said the price range of $55 to $65 a barrel was “acceptable” for Russian oil producers, adding that once the cuts were lifted, Russian gas oil would be able to rapidly increase production.
Russia is more satisfied with lower oil prices than Saudi Arabia. They also endorsed the comments made by the head of the Russian oil company, Sheikin. Shetchen said the cut affected Russian companies’market share and was good for American producers.
“Would it make sense for Russia to reduce oil production if the United States immediately seized our market share? We have to defend our market share,” Schechin said. The executive went on to say that if the cuts expand, Russian oil companies will ask the Russian government for compensation.
| EDTA 2Na |
“With the next OPEC meeting approaching in early July, we may hear more similar remarks,” he said. Russian oil producers have never really agreed to cut production, but the large-scale pollution of the Druzhba oil pipeline to Europe forced Russian oil producers to cut production and reduce production to within the OPEC quota.