Iran's President Hassan Rouhani, Russia's Vladimir Putin and Turkey's Tayyip Erdogan meet in Sochi, Russia November 22, 2017. (photo credit: SPUTNIK/MIKHAIL METZEL/KREMLIN VIA REUTERS) The Three Amigos
Posted on 03/27/2018 9:16:18 AM PDT by bananaman22
OPEC and Russia are looking to solidify their cooperation on crude oil production for another decade or two, Saudi Crown Prince Mohammed bin Salman told Reuters in an interview while on a visit to the United States.
“We are working to shift from a year-to-year agreement to a 10-20 year agreement,” the Crown Prince of OPEC’s biggest producer and de facto leader said in New York.
“We have agreement on the big picture, but not yet on the detail,” the Crown Prince said.
The idea to extend the current oil supply cooperation between OPEC and the Russia-led non-OPEC producers into a kind of permanent framework of cooperation emerged last month, after UAE’s Energy Minister Suhail Al Mazrouei said that OPEC and Russia aimed to have a plan for long-term cooperation drafted by the end of 2018 to create a ‘supergroup’ of oil producers.
(Excerpt) Read more at oilprice.com ...
Well, if he expects it to be the largest, he had better start courting Trump.
OPEC: Whistling past the graveyard.
We all have our dreams. Might as well dream big....
“Well, if he expects it to be the largest, he had better start courting Trump.”
There’s too many options that can be brought into play for a super cartel to hold a lock on oil prices. Saudi crown prince is desperate and needs more revenue to implement his modernization strategy. Plus, needs to keep feeding subsidies to the masses so there won’t be a coup.
Having spent the better part of the last 3 years in the Gulf States, I can tell you they need us more than we need them. President Trump is doing all the right things there. God bless FR.
A freeper in the other thread just pointed out that this would not have happened if Tillerson were still SOS. Thoughts?
The Prince is hoping that the American Left / Democrats will eventually succeed in killing off fracking.
See post above yours.
The Russians are buds with Iran.
Well yeah. I think the prince is reaching out to the ruskies with the crap going on in Yemen.
“We are working to shift from a year-to-year agreement to a 10-20 year agreement”
If long term agreements were a good thing for all parties I would expect that to be the norm already.
“A freeper in the other thread just pointed out that this would not have happened if Tillerson were still SOS. Thoughts?”
I would say “maybe”. The Saudis are burning money, depleting their reserves at a rapid rate. From what I’ve read they need $80/barrel oil to get back on the positive side of the ledger. But, supply currently exceeds demand with plenty of reserves on the sidelines waiting to come on-line if/when prices start rising. So, I question the proposition that T-Rex could have much influence on this. Actually, I think the Saudis are in deep do-do....
It’s plausible. however fracking producers have really destroyed OPEC’s cartel. in addition the rapid movement towards electric cars and also the massive way India, China, the EU and the USA are moving towards renewables has destroyed OPEC’s cartel
The “modernization strategy” is not a strategy, it’s a gov sop. The NEOM city is a flop even before the foudnation are laid - it can’t compete with Dubai, leave alone Western cities or Indian / Chinese cities.
“The “modernization strategy” is not a strategy, it’s a gov sop. The NEOM city is a flop even before the foudnation are laid - it can’t compete with Dubai, leave alone Western cities or Indian / Chinese cities.”
Well, my family and I lived in the PRC (Shanghai) two years and stopped off in Dubai for a three day layover a couple of times. So, I know something of which you speak. And, maybe the crown prince is indeed guilty of grandeose thinking. But, he understands a couple of things; oil is a deminishing asset and modernization is essential for the survival of the royal family. Is this new mega city the answer? Couldn’t say. Guess we shall see.....
Even in Dubaiya there is little innovationa dn the recent move to implement sales tax has slowed growth
Watch what Modi is doing to India -- since he took power, the flow of Indians to the UAE has actually become a net outflow (small right now) as the good times are nearly over (zero income tax, bubble economy).
OPEC, Russia consider 10-20 year oil cooperation: Saudi Crown Prince
CNBC | Mar 27 2018 | Reuters
Posted on 03/27/2018 7:38:39 AM PDT by GoldenState_Rose
http://www.freerepublic.com/focus/news/3642797/posts
Iran's President Hassan Rouhani, Russia's Vladimir Putin and Turkey's Tayyip Erdogan meet in Sochi, Russia November 22, 2017. (photo credit: SPUTNIK/MIKHAIL METZEL/KREMLIN VIA REUTERS) The Three Amigos
OPEC Has Already Turned to the Euro
GoldMoney Alert
February 18, 2004
...The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data.We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.
2001
As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.
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