Russia and OPEC ready to increase oil production

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Россия и ОПЕК готовятся к увеличению добычи нефти

At the upcoming meeting in Vienna, Russia may offer OPEC to increase production to levels in October 2016, reducing, thus, though not all, but most of the cuts. This was reported by Bloomberg citing a source.

Since July, the country will be in proportion to the increase in production of 1.8 million barrels a day.

It is difficult to say whether the information is true, but the upcoming June 22-23 meeting in Vienna can really bring a lot of surprises.

The problem is that some of the member countries of OPEC+ quickly increase production, but others are not, and there can be serious differences.

According to available information, Venezuela, Angola and Mexico is unable to increase production. On the other hand, the increase in production will offset reduced production in Venezuela and Iran.

Saudi Arabia and Russia are trying to garner support to increase production in the group. Most likely, they’ll find some allies, but at the same time will meet resistance from a number of manufacturers, led by Iran and Venezuela, according to Bloomberg.

This means that the discussions at the OPEC meeting on 22 June is likely to be stormy. And Venezuela and Iran have already applied to the group with a written call for unity against external sanctions, Recalling article 2 of the Charter of the organization. Their actions are unlikely to persuade Saudi Arabia, which the US increasingly demand to increase production by a million barrels a day, or Russia, whose oil industry calls for easing of restrictions.

In General, the signals to increase production really is. They came from Russia, and Saudi Arabia. In addition, more and more countries concerned about the rapid rise in oil prices, because the expensive raw materials can slow the growth of the world economy.

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