Russia seems willing to reduce oil supply

[admin]

This could be a significant breakthrough..

The first signs of a thaw are emerging for the battered oil market after Russia signalled a sharp fall in exports this year, a move that may offset the long-feared surge of supply from Iran. The oil-pipeline monopoly Transneft said Russian companies are likely to cut crude shipments by 6.4pc over the course of 2016, based on applications submitted so far by Lukoil, Rosneft, Gazprom and other producers. This amounts to a drop of 460,000 barrels a day (b/d), enough to eliminate a third of the excess supply flooding the world and potentially mark the bottom of the market. Russia is the world’s biggest producer of oil, and has been exporting 7.3m b/d over recent months.

Glimmers of hope for oil as Russia poised to slash output - Telegraph

OPEC has continuously said they don't want to be the ones cutting alone, so this could possibly lead to an understanding between them and Russia.

It's early days though..

[Thylacine-2]

If 460,000 bpd is a third of the excess supply "flooding the world", then supply and demand are just about in balance and "glut" is a misnomer.

[admin]

If 460,000 bpd is a third of the excess supply "flooding the world", then supply and demand are just about in balance and "glut" is a misnomer.

Well, perhaps, but tell that to the oil market..

What's equally interesting is that there is very little spare capacity, an acute event could lead to a price spike, although in the medium term that would fire up a fair amount of rigs in US shale land..