OPEC+ may advance oil output hike amid Iran-Israel tensions
ST PETERSBURG (Russia): OPEC+ group of leading global oil producers could bring forward its output hikes by around a year from the initial plan, Igor Sechin, head of Russia's largest oil producer Rosneft, said on Saturday.
He also said that the decision by the OPEC+ to speed up output increase now looked far-sighted and justified in the light of the confrontation between Israel and Iran.
The Organization of the Petroleum Exporting Countries and its allies, led by Russia, shocked oil markets in April by agreeing a bigger-than-expected output hike for May despite weak prices and slowing demand.
OPEC+ has since decided to continue with more than planned hikes.
'The announced increase in production since May of this year is three times higher than the alliance's initial plan. In addition, the entire increase in OPEC+ production could be shifted a year ahead of plan,' he said without elaborating.
'The decision taken by OPEC leaders to forcefully increase production looks very far-sighted today and, from the market's point of view, justified, taking into account the interests of consumers in light of the uncertainty regarding the scale of the Iran-Israel conflict,' he added.
OPEC+ crude output represents about 41% of global oil production. The group's main objective is to regulate the supply of oil to the global market.
Having spent years curbing production, eight OPEC+ countries made a modest output increase in April before tripling it for May, June and now July.
Besides the 2.2 million bpd cut that the eight members started to unwind in April, OPEC+ has two other layers of cuts that are expected to remain in place until the end of 2026.
Oil prices had initially fallen in response to the OPEC+ decision to increase oil production, but the outbreak of an aerial war between Israel and Iran has so far been the main factor behind their return to around $75 per barrel, levels unseen since the start of the year.
Speaking at the St. Petersburg International Economic Forum, Sechin, a long-standing ally of Russian President Vladimir Putin, also said there will be no oil glut long-term despite the production rise due to low stockpile levels, though rising usage of electric vehicles in China might hit oil demand.
Putin said on Friday he shared OPEC's assessment that demand for oil will remain high. He also said that oil prices had not risen significantly due to the conflict between Iran and Israel, and that there was no need for OPEC+ to intervene in oil markets.
Sechin also said Rosneft had already budgeted the oil price of $45 per barrel for this year, the level the European Union eyes as the new price cap on Russian oil imports, which is now set at $60.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
an hour ago
- The Sun
Hundreds of US citizens exit Iran amid war, some detained
WASHINGTON: Hundreds of American citizens have departed Iran using land routes over the past week since an aerial war between the Islamic Republic and Israel broke out, according to an internal State Department cable seen by Reuters on Friday. While many left without problem, 'numerous' citizens had faced 'delays and harassment' while trying to exit, the cable said. It said, without giving further details, that one unidentified family had reported that two U.S. citizens attempting to leave Iran had been detained. The internal cable dated June 20 underscores the challenge Washington is facing in trying to protect and assist its citizens in a country with which it has no diplomatic relations and in a war in which the United States may soon get involved. President Donald Trump and the White House said on Thursday he will decide in the next two weeks whether the U.S. will get involved in the Israel-Iran war. Trump has kept the world guessing on his plans, veering from proposing a swift diplomatic solution to suggesting Washington might join the fighting on Israel's side. The air war began on June 13 when Israel attacked Iran and has alarmed a region that has been on edge since the start of Israel's war in Gaza in October 2023. Israel is the only country in the Middle East widely believed to have nuclear weapons, and said it struck Iran to prevent Tehran from developing its own nuclear weapons. Iran, which says its nuclear program is peaceful, has retaliated with its own strikes on Israel. Iran is a party to the Nuclear Non-Proliferation Treaty, while Israel is not. 'Due to the limitations of U.S. consular support in Iran, U.S. citizens seeking departure should take advantage of existing means to leave Iran,' a State Department spokesperson said in comments emailed late on Friday, when asked about the cable, which was first reported by The Washington Post. POTENTIAL EVACUATION The U.S. State Department in a travel alert earlier on Friday urged its citizens wishing to depart Iran to use land routes via Azerbaijan, Armenia or Turkey. Iranian airspace is closed. The U.S. Embassy in the Turkmenistan capital of Ashgabat has requested entry for over 100 American citizens, but the Turkmenistan government has yet to give its approval, the cable said. The Islamic Republic treats Iranian-U.S. dual citizens solely as nationals of Iran, the State Department emphasized. 'U.S. nationals are at significant risk of questioning, arrest and detention in Iran,' the alert said. Washington is looking at ways to potentially evacuate its citizens from Israel, but it has almost no way of assisting Americans inside Iran. The two countries have had no diplomatic ties since the Iranian Revolution in 1979. U.S. Ambassador to Israel Mike Huckabee on Thursday said the administration was looking at different ways to get U.S. citizens out. 'We're working to get military, commercial, charter flights and cruise ships for evac,' he said in an X post, urging U.S. citizens and green card holders to complete an online form. As of Friday, more than 6,400 U.S. citizens filled out that form for Israel, a separate internal department email seen by Reuters said. The form allows the agency to predict an approximate figure for potential evacuations. 'Approximately 300-500 U.S. citizens per day would potentially require departure assistance,' said the internal email, also dated June 20 and marked 'sensitive'. The State Department does not have official figures but thousands of U.S. citizens are thought to be residing in Iran and hundreds of thousands in Israel. Israel's strikes over the last week have killed 639 people in Iran, according to the Human Rights Activists News Agency. Israel says Iranian attacks have killed 24 civilians in Israel. 'The U.S. Department of State received no reports of U.S. citizen casualties in Israel or Iran,' the second email said.
The Sun
an hour ago
- The Sun
Hundreds of US citizens left Iran in last week, State Dept cable says
WASHINGTON: Hundreds of American citizens have departed Iran using land routes over the past week since an aerial war between the Islamic Republic and Israel broke out, according to an internal State Department cable seen by Reuters on Friday. While many left without problem, 'numerous' citizens had faced 'delays and harassment' while trying to exit, the cable said. It said, without giving further details, that one unidentified family had reported that two U.S. citizens attempting to leave Iran had been detained. The internal cable dated June 20 underscores the challenge Washington is facing in trying to protect and assist its citizens in a country with which it has no diplomatic relations and in a war in which the United States may soon get involved. President Donald Trump and the White House said on Thursday he will decide in the next two weeks whether the U.S. will get involved in the Israel-Iran war. Trump has kept the world guessing on his plans, veering from proposing a swift diplomatic solution to suggesting Washington might join the fighting on Israel's side. The air war began on June 13 when Israel attacked Iran and has alarmed a region that has been on edge since the start of Israel's war in Gaza in October 2023. Israel is the only country in the Middle East widely believed to have nuclear weapons, and said it struck Iran to prevent Tehran from developing its own nuclear weapons. Iran, which says its nuclear program is peaceful, has retaliated with its own strikes on Israel. Iran is a party to the Nuclear Non-Proliferation Treaty, while Israel is not. 'Due to the limitations of U.S. consular support in Iran, U.S. citizens seeking departure should take advantage of existing means to leave Iran,' a State Department spokesperson said in comments emailed late on Friday, when asked about the cable, which was first reported by The Washington Post. POTENTIAL EVACUATION The U.S. State Department in a travel alert earlier on Friday urged its citizens wishing to depart Iran to use land routes via Azerbaijan, Armenia or Turkey. Iranian airspace is closed. The U.S. Embassy in the Turkmenistan capital of Ashgabat has requested entry for over 100 American citizens, but the Turkmenistan government has yet to give its approval, the cable said. The Islamic Republic treats Iranian-U.S. dual citizens solely as nationals of Iran, the State Department emphasized. 'U.S. nationals are at significant risk of questioning, arrest and detention in Iran,' the alert said. Washington is looking at ways to potentially evacuate its citizens from Israel, but it has almost no way of assisting Americans inside Iran. The two countries have had no diplomatic ties since the Iranian Revolution in 1979. U.S. Ambassador to Israel Mike Huckabee on Thursday said the administration was looking at different ways to get U.S. citizens out. 'We're working to get military, commercial, charter flights and cruise ships for evac,' he said in an X post, urging U.S. citizens and green card holders to complete an online form. As of Friday, more than 6,400 U.S. citizens filled out that form for Israel, a separate internal department email seen by Reuters said. The form allows the agency to predict an approximate figure for potential evacuations. 'Approximately 300-500 U.S. citizens per day would potentially require departure assistance,' said the internal email, also dated June 20 and marked 'sensitive'. The State Department does not have official figures but thousands of U.S. citizens are thought to be residing in Iran and hundreds of thousands in Israel. Israel's strikes over the last week have killed 639 people in Iran, according to the Human Rights Activists News Agency. Israel says Iranian attacks have killed 24 civilians in Israel.
The Sun
an hour ago
- The Sun
Russia's Sechin says China is moving towards exporting energy
ST PETERSBURG (Russia): Rosneft CEO Igor Sechin, one of the most influential men in Russia's energy sector, said on Saturday that China was seeking complete energy independence and that in the foreseeable future it could become a major energy exporter. China's economic and military rise over the past 45 years is considered to be one of the most significant geopolitical events of recent times, alongside the 1991 fall of the Soviet Union which ended the Cold War. Sechin said that a massive increase in electricity consumption was changing the entire landscape of the global energy markets as populations soared in Africa and Asia and the digital revolution triggered massive demand for power. Speaking at the St. Petersburg International Economic Forum, Sechin said that China accounted for a third of global investment in the energy sector, was ramping up renewable energy capacity and was now one of the leaders in nuclear power. 'China, which has already ensured its energy security, is confidently moving towards complete energy independence, forming a stable energy balance based on its own resources,' Sechin said in a speech which referenced both Greek mythology and Niccolo Machiavelli. 'There is no doubt, taking into account the persistence and professionalism of our Chinese comrades, that in the foreseeable future they will achieve the desired result, which will turn China from an importer of energy resources into a major energy exporter.' China is currently the world's largest importer of crude oil and a major importer of natural gas. Russia is the world's second largest oil exporter and holds the world's largest reserves of natural gas. Sechin, who worked alongside Vladimir Putin in the former imperial capital of St Petersburg and later under the president in the Kremlin, has run Rosneft since 2012. Rosneft accounts for about 40% of Russian oil production, 14% of the country's gas production and 32% of the refinery market. It is also the biggest Russian exporter of oil to China. Sechin said that the decision by OPEC+ to speed up an output increase now looked far-sighted and justified in the light of the confrontation between Israel and Iran. He added that the OPEC+ group could bring forward its output hikes by around a year from the initial plan. He drew attention to the vast U.S. debt pile, warning that great powers from Habsburg Spain and pre-Revolutionary France to the Ottoman Empire and Britain had declined due to high levels of public debt. The expansion of the Western military-industrial complex was diverting enormous resources away from productive sectors and unlikely to be a panacea for the problems in Europe or the United States, Sechin said. 'There is always an asymmetrical answer,' he added. But his focus was on China's role, giving the example how the growth in the sales of electric vehicles had resulted in significant slowdown in motor fuel demand over the last year. 'If this trend continues – it may have a significant reverse impact on the oil market balance,' Sechin said. He added than an important part of China's strategy to reduce dependence on energy imports was the processing of coal into synthetic fuels and chemical products. About 40 million tons of coal is used to produce synthetic fuels and more than 260 million tons for ammonia and methanol production, he said.
