Latest news with #ErlanAkkenzhenov
Reuters
4 days ago
- Business
- Reuters
Kazakhstan minister says oil price above $70-$75/bbl likely suits all countries
ASTANA, May 29 (Reuters) - Kazakhstan's Energy Minister Erlan Akkenzhenov said on Thursday that an oil price above $70-$75 per barrel is likely to be suitable for all countries. He dismissed criticism over Kazakhstan's oil production exceeding quotas set by the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, due to the country's relatively small output. Some members of the group have complained about Kazakhstan's overproduction. Analysts and industry sources have also cited Kazakhstan's excessive oil output as one of the reasons behind OPEC+'s decision to speed up production hikes. Akkenzhenov, who took over Kazakhstan's energy ministry in March, singled out U.S. tariff policy as a reason behind volatility on global energy markets. Oil prices rose by about $1 a barrel to above $65 per barrel on Thursday after a U.S. court blocked most of President Donald Trump's tariffs, while the market was watching out for potential new U.S. sanctions curbing Russian crude flows and an OPEC+ decision on hiking output in July. "We wake up each morning and expect to hear the news on some countries' politics," the minister told reporters. He said that Kazakhstan's share in global oil production is less than 2%. According to an industry source, who spoke on condition of anonymity due to the sensitivity of the situation, Kazakhstan's crude oil production, excluding gas condensate, averaged 1.86 million barrels per day on May 1-19, including 932,000 bpd at Tengiz.
Arabian Post
29-04-2025
- Business
- Arabian Post
Kazakhstan's Oil Output Surpasses OPEC+ Quota Amidst Internal Alliance Tensions
Kazakhstan's oil production from April 1 to 28 reached 1.814 million barrels per day , exceeding its OPEC+ quota of 1.473 million bpd by over 340,000 bpd, despite a 3% decline from March's average. This overproduction continues a pattern observed in previous months, with March's output at 1.8 million bpd, surpassing the quota by 332,000 bpd. The Chevron-led Tengiz oilfield, Kazakhstan's largest, has been a significant contributor to this elevated production. Newly appointed Energy Minister Erlan Akkenzhenov emphasized that Kazakhstan's oil production decisions are driven by national interests rather than strict adherence to OPEC+ agreements. He highlighted the limited state control over major oil projects operated by foreign companies, making it challenging to adjust output levels. Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.
Zawya
29-04-2025
- Business
- Zawya
Kazakhstan's April oil output exceeds OPEC+ quota despite 3% fall
MOSCOW: Kazakhstan oil production was again above its OPEC+ quota this month, although it fell 3% from the March average, according to an industry source familiar with the statistics, and Reuters calculations. Kazakhstan, a top-10 oil producer, has persistently exceeded quotas set by OPEC+, an alliance between the Organization of the Petroleum Exporting Countries and other producers led by Russia, leading to complaints from other members of the group. Between April 1 and 28, its oil production, excluding gas condensate, was 1.814 million barrels per day, down 3% from the March average. Its OPEC+ quota for April is 1.473 million bpd. Kazakhstan's energy ministry did not reply to a request for comment. Last week, Kazakhstan's Energy Minister Erlan Akkenzhenov told Reuters the country would prioritise national interests over those of the OPEC+ group when deciding on oil production levels. Kazakhstan has, however, said it would compensate for overproduction by reducing its cumulative output by 1.3 million bpd by April 2026. Kazakhstan increased oil exports by 7% year on year to 19.515 million metric tons (1.63 million barrels per day) in January-March following a supply boost via the Caspian pipeline, Reuters calculations based on official data and sources showed. The country's oil production has risen as a result of an expansion at the Chevron-led Tengiz oil field, Kazakhstan's largest. According to the source, oil output at Tengiz declined over April 1-28 to 882,000 bpd from 950,000 bpd in March on average. Western oil majors, including Shell, ExxonMobil , TotalEnergies and Eni, as well as Chevron, are active in Kazakhstan. (Reporting by Reuters; editing by Barbara Lewis) Reuters
The National
24-04-2025
- Business
- The National
Why are oil prices so volatile and where are they heading?
Oil prices have been extremely volatile in recent weeks and could drop further if Opec+ decides to boost supply when it meets early next month, analysts say. Increased trade war concerns led by US tariffs and the possibility of a nuclear deal with Iran have led to fears about reduced demand and a supply glut. Prices fluctuated on Thursday after falling nearly 2 per cent in the previous session as investors weighed the prospect of an Opec+ supply boost against the fallout from trade tensions between the US and China, and Iran talks. Brent, the benchmark for two thirds of the world's oil, was trading 0.51 per cent higher at $66.46 a barrel at 10.54am UAE time, while West Texas Intermediate, the gauge that tracks US crude, was up 0.59 per cent at $62.64 per barrel. 'Oil prices weakened overnight as discord bubbled to the surface within Opec+,' said Edward Bell, acting group head of research and chief economist at Emirates NBD. This came after Kazakhstan's Energy Minister Erlan Akkenzhenov said the country couldn't make substantial cuts to its output and would 'prioritise national interests', a Reuters report said. Other Opec+ members are also reportedly considering whether to accelerate output increases in June, it said. Oil's quiet ascent since its tariff-induced trough on April 9 'has been stymied' by renewed concerns that Kazakhstan has defied Opec+ by prioritising national production targets over group quota levels, Japanese bank MUFG said on Thursday. 'This growing internal discord within Opec+ comes as oil bulls have been relishing on the recent risk-on mood reflecting easing Fed independence apprehensions, softer US rhetoric on China tariffs and a clearing of short positions in the midst of the first quarter's earnings season,' it said. Earlier this month, the producers group decided to add 411,000 barrels per day to the market in May, more than the 138,000 bpd initially planned, on expectations of a rise in demand. The group will hold a meeting on May 5 to decide its output plans for June. 'Brent's upside should remain capped as long as global trade tensions keep feeding demand-side fears,' Han Tan, chief market analyst at Exinity Group, told The National. 'Oil benchmarks could also sink to fresh four-year lows below $60 per barrel if Opec+ proceeds with yet another bumper-sized production hike in June.' The consistent uncertainty surrounding US-China trade tensions over tariffs has been a key driver for oil price volatility. On Wednesday, The Wall Street Journal reported that the White House was considering slashing steep tariffs on Chinese imports – in some cases by more than half – in a bid to de-escalate tensions with Beijing. US President Donald Trump is also reportedly considering tariff exemptions on car part imports from China, which could support oil prices. However, the outlook remains bearish for now, analysts said. 'Oil prices face downward pressure as US talks with Iran, US tariffs, rising Opec+ supply projections and lowered oil demand estimates from the International Energy Agency and Opec create the perfect storm for low investor confidence,' Rystad Energy said on Wednesday. Opec this month slashed its oil demand forecast for 2025 to 1.3 million barrels per day, mainly due to tariff uncertainty. The prolonged US-China trade war could cut China's oil demand growth in half this year to 90,000 barrels per day from 180,000 bpd, according to Rystad. China is the world's second-largest economy and a leading crude importer. The progress in US and Iran nuclear talks are also affecting oil markets. Iran this week said a nuclear deal was possible 'in the short term' following two rounds of indirect negotiations between the US and Tehran. If a deal is reached between the two countries, it could lead to a boost in supply from Iran on possible sanctions relief. Meanwhile, the US Department of the Interior on Wednesday said it will issue emergency permits to accelerate the development of domestic energy resources including crude oil and critical minerals. 'We are cutting through unnecessary delays to fast-track the development of American energy and critical minerals – resources that are essential to our economy, our military readiness and our global competitiveness,' said Secretary of the Interior Doug Burgum. 'By reducing a multi-year permitting process down to just 28 days, the department will lead with urgency, resolve and a clear focus on strengthening the nation's energy independence.' Prolonged low oil prices could also hit investment in the energy sector, according to a report from Wood Mackenzie. 'If operators and the supply chain anticipate a period of prolonged low prices, it would send shockwaves through the industry," said Fraser McKay, the company's head of upstream analysis. 'This near-term uncertainty becomes an investment killer, precisely when the focus should be on potential long-term demand growth.'
Reuters
23-04-2025
- Business
- Reuters
Kazakhstan's OPEC+ defiance could push Saudi into a painful price war: Bousso
LONDON, April 23 - Kazakhstan's public defiance of the OPEC+ oil production alliance could signal its exit from the group and push Saudi Arabia into a painful price war at a precarious moment. The Central Asian country's newly appointed Energy Minister Erlan Akkenzhenov told Reuters on Wednesday that Kazakhstan will prioritise national interests over those of the OPEC+ group when determining its oil production levels, implying the country might not comply with cuts it agreed to as part of a supply deal between major producing nations. This could also be a precursor to Kazakhstan leaving the OPEC+ alliance unofficially led by Saudi Arabia, which has since 2022 agreed on a series of collective production cuts totalling around 5.85 million barrels per day (bpd), or nearly 6% of global production. But the agreement has been far from water-tight, as a number of members have failed to comply with their production targets, including Iraq and the United Arab Emirates. Kazakhstan has arguably been the worst offender recently. Its crude oil production surged in March to 1.85 million bpd from an average of 1.74 million bpd in 2024, after production began at the extension of the country's giant Tengiz field at the start of the year, far exceeding the country's output quota of 1.468 million bpd, according to OPEC data. The OPEC+ alliance has been highly effective in maintaining Brent oil prices in a steady range of $70 to $90 a barrel in recent years. But the lack of compliance among OPEC+ members has rankled Saudi Arabia, which requires an oil price of over $90 a barrel in order to balance its budget, according to IMF estimates. Riyadh and other producers sent a shot across the bows of non-compliant members earlier this month when they announced an unexpected deal to accelerate plans to increase output by 411,000 bpd in May, a three-fold increase from a previous plan. Saudi also sharply cut its oil selling prices for May for Asian buyers to the lowest in four months, further challenging other producers. An extended price war, such as the one Saudi launched in 2014 in an attempt to curb surging U.S. shale production, would make many oilfields unprofitable, leading producers to shut in production, giving low-cost producers bigger market share. The increased output deal initially appeared to achieve its aim and was followed by a detailed compensation plan, opens new tab that would have seen Kazakhstan and Iraq implement deep production cuts. But Wednesday's events suggest Kazakhstan is not going to play ball and will maintain production at elevated levels. NIGHTMARE SCENARIO This is a nightmare scenario for the OPEC+ alliance. Kazakhstan's defiance could push other members to reconsider the benefits of complying with the supply deal, potentially leading them to contemplate leaving the alliance. That, in turn, could lead to a surge in production that could crater oil prices if production in other non-OPEC+ countries such as the United States and Brazil rises. Saudi Arabia and its allies will likely immediately launch a broad diplomatic push to convince Kazakhstan to comply with the deal. But if Riyadh fails to assert discipline that way, it could try to compel Kazakhstan and other errant OPEC+ members to fall in line by flooding the market with more cheap oil, effectively launching a price war. Indeed, sources familiar with the matter told Reuters on Wednesday that several OPEC+ members will suggest accelerating oil output hikes in June for a second consecutive month. Adding so much oil into an already well-supplied market is risky, especially considering the global economic turmoil seen amid the escalation of U.S. President Donald Trump's global trade war. Saudi and other Gulf countries have some of the world's lowest oil production costs and could therefore weather a price war better than others. At the same time, they would not want to see prices collapse for an extended period of time because that would weigh heavily on their national finances. The OPEC+ alliance has shown increasing signs of weakness this year. Kazakhstan's defiance could signal that a split is coming. ** The opinions expressed here are those of the author, a columnist for Reuters. ** Want to receive my column in your inbox every Thursday, along with additional energy insights and trending stories? Sign up for my Power Up newsletter here. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
