Saudi Arabia’s oil minister Ali Ibrahim Al-Naimi, speaking on Tuesday, February 23, declared that proposed production cuts to the country’s oil supplies will not take place.
Despite this, it is hoped that oil producers will get together in March to negotiate an output freeze.
A week earlier, Russia, Qatar and Venezuela, along with Saudi Arabia, proposed a freeze which would limit production at last month’s levels, with Russian Energy Minister Alexander Novak stating that the deal should be put in place by March 1.
“Freeze is the beginning of a process, and that means if we can get all the major producers to agree not to add additional balance, then this high inventory we have now will probably decline in due time. It’s going to take time.”
He went on to note that a freeze is not the same as cutting production, and that cuts were not about to happen in Saudi Arabia because he expects that few other oil-producing countries would be able to deliver, and this he believed would make the exercise a waste of the Middle Eastern nation’s time.
Al-Naimi also noted that, at present, there is less trust than usual among the world’s oil exporters.
It remains to be seen how this latest move will effect the oil industry, and the big global oil companies like Q8, which manufactures Q8 T750 15W/40, but it is likely to lead to more turbulence and uncertainty, in the short term,at least.
The global supply glut has presented many challenges to the world’s largest oil producing companies, as well as Continue reading Glut in oil supply could last until 2017
According to UK Oil & Gas Investments (UKOG), the Weald Basin, which has been dubbed the ‘Gatwick Gusher’, has Continue reading ‘Gatwick Gusher’ could prove rich oil source, says UKOG
Russia and Saudi Arabia have agreed to freeze current oil output at near-record levels in the first coordinated move by the two oil giants.
This is a move to counteract a Continue reading Oil heavyweights come to output agreement
China’s crude oil imports fell by 20% in January 2016, plunging to their lowest levels since October 2015, according to official customs data, which was shown yesterday (February 15).
The country’s January crude oil imports were Continue reading January sees drop in China’s crude oil imports
Measuring air contamination levels in your lubricants is extremely important because, should levels go above 10%, problems including Continue reading Three methods for measuring air contamination in oil
On Wednesday, Russian oil industry official Igor Sechin signposted his opposition to the prospect of linking with the Continue reading Rosneft renounces case for cuts to oil output
One of the things that is often overlooked when selecting an oil is the issue of energy efficiency. Different oil brands like Continue reading A brief guide to determining oil efficiency
Iran is looking to recover multiple billions of dollars it is owed by India and other oil purchasers, but wants to do so in euros rather than the U.S. currency.
The Middle Eastern nation it has Continue reading Iran seeks euro oil payments
Scientists recently published new research that could transform motor oil performance, reduce wear and tear in vehicles and possibly even save car owners money at Continue reading New technique could make oil performance even better