After a continuous surge, Russia’s August crude oil production growth rate has slowed significantly.
According to data released by the Russian Ministry of Energy on Sunday, in August, Russia’s crude oil production was 11.11 million barrels per day, unchanged from last month. In addition, Russia’s export crude oil output in August rose 1.9% in August, reaching 5.55 million barrels per day.
In the two months of June and July, Russian crude oil production soared, and the July production reached Russia’s new monthly high since the disintegration of the Soviet Union, second only to the fourth quarter of 2016.
| PVA |
On September 23, OPEC and other oil-producing countries will meet in Algeria to discuss the current situation of the crude oil market.
In addition to OPEC, Russia currently plays a pivotal role in the global crude oil market. In 2017, Russia produced the first oil in the world.
Earlier, Wall Street saw that Saudi Arabia and Russia’s cooperation in crude oil prices had an obvious impact on international oil prices:
In December 2016, Russia and Saudi Arabia reached a production reduction agreement to push up global oil prices. The effect of cooperation between the two countries was immediate. In October 2017, the price of oil increased to $60/barrel. In May 2018, the price of oil broke through $80/barrel.
For the Trump administration, although I don’t like OPEC, the OPEC members Saudi Arabia, Iran, Iraq, Venezuela and Qatar are not under the control. Under the sanctions, a tweet can make OPEC is shaking, but Russia’s production capacity is uncontrollable.
Trump has been opposed to high oil prices in recent months, on the one hand to avoid increasing inflation and hurting the US economy; and the current market share of the United States is limited, capacity is experiencing bottlenecks, and crude oil exporters cannot benefit the most from high oil prices. Oil prices are cheaper for Russia and OPEC countries.
Therefore, the United States asked OPEC to increase production and lower oil prices, while increasing sanctions against Iran and Russia, curbing the expansion and export of crude oil capacity between the two countries, and opening up markets for US crude oil. US sanctions against Russia include bans on exports of goods, services or technology needed to support the exploration or production of Russian deep-water, Arctic offshore or shale projects to curb Russia’s oil production potential.
| POLYVINYL ALCOHOL |