Russia’s Sechin raises pressure on Putin to end OPEC deal
Igor Sechin, head of Russian oil giant Rosneft and one of Vladimir Putin’s closest allies, has written to the Russian president saying Moscow’s deal with OPEC to cut oil output is a strategic threat and plays into the hands of the United States. The letter did not say whether the agreement in place since 2017 between the Organization of the Petroleum Exporting Countries (OPEC) and other large oil producers led by Russia to cut output should be extended or not. Click here to read more from Reuters.
Alberta’s oil cuts backfire as crude-by-rail shipments collapse
Alberta’s effort to alleviate a crude glut through mandatory production curtailments may be backfiring, as Canadian heavy crude has become too expensive to ship by rail. Two months after the provincial government announced the cuts, crude-by-rail shipments are declining even as pipelines remain at or near capacity. Rail volumes fell 56 per cent last week compared with three weeks earlier, after setting a record in December, according to Genscape Inc., which monitors crude-by-rail loadings at some of the larger terminals in Western Canada. Click here to read more from Financial Post.
Saudis plan deeper oil supply cuts
Saudi Arabia says it will reduce oil production to nearly 9.8 million barrels per day in March, well below its production quota under a deal to cap output. OPEC says it cut oil production by almost 800,000 bpd in January to 30.81 million bpd. A new round of talks between U.S. and Chinese officials fuels hope that the two sides will soon resolve their ongoing trade dispute. Click here to read more from CNBC.
South Africa oil discovery could be a game-changer
One of the promising hotspots for oil and gas exploration drilling this year—South Africa’s offshore—has just yielded a massive natural gas and condensate find that could open a new exploration province for oil majors and change the energy fortunes of South Africa. “With this discovery, Total has opened a new world-class gas and oil play and is well positioned to test several follow-on prospects on the same block,” said Kevin McLachlan, Senior Vice President Exploration at Total. Click here to read more from OilPrice.com.