{"id":39556,"date":"2018-10-22T18:10:50","date_gmt":"2018-10-22T23:10:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=39556"},"modified":"2018-10-22T18:11:15","modified_gmt":"2018-10-22T23:11:15","slug":"this-alliance-could-mark-a-new-era-for-oil","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=39556","title":{"rendered":"This Alliance Could Mark A New Era For Oil"},"content":{"rendered":"

This Alliance Could Mark A New Era For Oil<\/a><\/h3>\n
\"Novak<\/picture><\/div>\n
\n

Saudi Arabia and Russia could formalize a strategic partnership that would last indefinitely, potentially marking a new era for the oil market.<\/p>\n

In a wide-ranging interview with TASS, Saudi oil minister Khalid al-Falih said that he hopes to setup an official OPEC+ governing body, including a Secretariat, likely to be based in Vienna. The proposal could be finished by December.<\/p>\n

To date, OPEC+ has been a somewhat informal group, or at least a provisional one, intended to address the supply glut that emerged following the 2014-2016 market bust.<\/p>\n

This past June, the group all but declared mission accomplished, watering down the production targets by agreeing to a vague increase in collective production by 1 million barrels per day (mb\/d). Without the urgent need to balance the market, the purpose of the OPEC+ agreement following the June meeting already started to become unclear.<\/p>\n

Al-Falih wants to put together an official governing structure that would preside over oil market coordination going forward. \u201c[W]e want to sign a new cooperation agreement that is open-ended. That does not expire after 2020 or 2021. We will leave it open,\u201d al-Falih told TASS<\/a>. He said that the purpose of OPEC+ would not be aimed at a fixed production target, but to coordinate production levels as they see fit.<\/p>\n

But, of course, this has always been the mission of OPEC. The objective of establishing a permanent OPEC+ body raises the question of what is supposed to happen to OPEC. Al-Falih suggests that OPEC+ could \u201cwork closely with OPEC.\u201d It seems confusing, since all of the OPEC members are in OPEC+, while OPEC+ contains a bunch of additional countries. How will these two bodies interact and to what degree will they overlap? That much remains unclear.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

This Alliance Could Mark A New Era For Oil Saudi Arabia and Russia could formalize a strategic partnership that would last indefinitely, potentially marking a new era for the oil market. In a wide-ranging interview with TASS, Saudi oil minister Khalid al-Falih said that he hopes to setup an official OPEC+ governing body, including a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3,5],"tags":[22482,6010,5332,600,694,701,10651],"class_list":["post-39556","post","type-post","status-publish","format-standard","hentry","category-energy-2","category-geopolitics","tag-khalid-al-falih","tag-nick-cunningham","tag-oilprice-com","tag-opec","tag-russia","tag-saudi-arabia","tag-tass"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39556"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39556\/revisions"}],"predecessor-version":[{"id":39557,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39556\/revisions\/39557"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}