Breaking News
Investing Pro 0
👀 Bezos, Buffett & Berkowitz: What's in Their Portfolios? Unlock Data

Oil down 3% on “no new OPEC cut”; Russians speak for Saudis

Published May 25, 2023 02:14PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
LCO
+1.13%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
+1.45%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com -- The Russians aren’t helping the price of oil — to the delight possibly of the West and the utter frustration likely of other producers within the OPEC+ alliance, not to mention market bulls.

Crude prices tumbled some 3% Thursday after Russian Deputy Prime Minister Alexander Novak, who is also the nation’s de facto oil minister, said he expected no new steps from OPEC+ at its meeting on June 4.

Given that Saudi Energy Minister Abdulaziz bin Salman had hinted just 24 hours earlier of the possibility of another round of production cuts at the meeting, Novak’s remarks meant only one thing — that the alliance will keep output unchanged.

“There’s also another interpretation of this, and that is the Russians and Saudis aren’t on the same page as to what’s needed to keep oil supported at above $70 a barrel,” said John Kilduff, partner at New York energy hedge fund Again Capital. 

“The Russians are basically saying ‘we’ll produce what we’ll produce and sell at whatever price we get. If you guys want to cut and push the market up, that’s up to you. Just don’t count us in.'”

New York-traded West Texas Intermediate, or WTI, crude settled down $2.51, or 3.4%, at $71.83 per barrel.

WTI had hit a three-week high of $74.73 in the previous session, helped by the Saudi hint of new OPEC+ cuts and upbeat U.S. oil demand data.  

London-traded Brent crude, the global benchmark for oil, settled at $76.26 — down $2.10, or 2.7%, on the day. Brent hit a three-week peak of $78.66 in the previous session.

OPEC+, an alliance of 13 Saudi-led nations in the Organization of the Petroleum Exporting Countries and 10 other oil producers steered by Russia, has had limited success over the past two months in trying to push crude prices up with production cuts.

In April, OPEC+ announced a 1.7 million-barrel-per-day cut, on top of a prior undertaking to shed 2M barrels daily. 

After the April cut was announced, crude prices only went up for two weeks, before turning lower over four weeks, erasing some 15%. The earlier reduction fared worse, resulting in just a few days of gains before prices tumbled to 15-month lows in March.

Novak, potentially sensing that another cut won’t do much for the group, said on Thursday he was still waiting “for an assessment of the situation in the market".

"But I don't think that there will be any new steps, because just a month ago certain decisions were made regarding the voluntary reduction of oil production by some countries due to the fact that we saw the slow pace of global economic recovery," he was quoted as saying by the Izvestia newspaper in a report reproduced by Reuters.

Oil down 3% on “no new OPEC cut”; Russians speak for Saudis
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Jay Garrelts
Jay Garrelts May 25, 2023 10:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump and Biden knew how to get on their knees for the prince lol
Tre Hsi
Tre Hsi May 25, 2023 10:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
actually US is not as depended on imported oil as Europe or China or Japan
Tre Hsi
Tre Hsi May 25, 2023 10:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
even other oil producing nations have to kiss Saudi ass because Saudi production level basically determine the global oil price, Putin found that out the hard way back in 2015.....
Rubbing Hands
Rubbing Hands May 25, 2023 3:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
we all know this article is horseshat
Barani Krishnan
Barani Krishnan May 25, 2023 3:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Learn to spell properly, Rubbing Hands: horse-s(hit); repeat after me horse-s(hit). LOL
Rubbing Hands
Rubbing Hands May 25, 2023 3:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
b a r n( I) Krishnan. Did I get it right this time?
Ge K
Ge K May 25, 2023 3:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Never believe a Russian. Nobody speaks for the Saudis or Opec+ to add to that. Air Transportation is going parabolic both passenger as well as cargo. Lastly the increase in military movements in the Pacific is 10X from previous years, thank you China. Cuts are coming and $85 oil by mid June. Save this Comment.
Barani Krishnan
Barani Krishnan May 25, 2023 3:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes, and the Russians will continue selling at $60 or below. That will partly balance the OPEC ardor.
Barani Krishnan
Barani Krishnan May 25, 2023 3:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
In a sense, you're right about the Russians not being allowed to speak for the haughty Saudis. New Novak stance -- Russia’s Deputy PM Novak: Russia and OPEC+ partners will make a decision on what is best for the oil market.
Barani Krishnan
Barani Krishnan May 25, 2023 3:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Must be after sufficient scolding by Saudi counterpart. LOL
Barani Krishnan
Barani Krishnan May 25, 2023 3:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
OPEC are a bunch of self serving n(erds)
Barani Krishnan
Barani Krishnan May 25, 2023 3:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Another thing, Ge K, I'm not sure how much of OPEC+ history you remember, but I covered its inception in 2014 and I remember the Saudis practically begging and kissing the Russians to join. In essence, there would NOT be an OPEC+ without the Russians. And we all know what will happen to the oil price is there's only OPEC.
Adel AlZahrani
Adel AlZahrani May 25, 2023 2:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol western media agenda so all western media talk behalf saudis and all people 🤣please give me bear
Barani Krishnan
Barani Krishnan May 25, 2023 2:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The Russian (oil) bear is good for the West.
John Avenetti
John Avenetti May 25, 2023 2:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sounds like Russia is the good guy. hey. anything the western media says I believe the opposite essentially. and I defintely think Russia IS the lessor of evils.
Robby Pandher
Robby Pandher May 25, 2023 2:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The media and political system of our American and European countries is in bed with the evil Chinese communist party.
Barani Krishnan
Barani Krishnan May 25, 2023 2:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Before you run off a tangent and allude to Investing dotcom being partisan to Beijing, please be aware that we are Jerusalem based and are not politically affiliated in any way. Also, I have always advocated lower oil prices for the benefit of the economy; i.e. higher oil prices are only good for one industry: the oil industry itself. For every other industry, it's a cost.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email