WHAT I AM ABOUT TO SHOW YOU IS VERY SIGNIFIGANT EXSPECIALLY SINCE RUSSIA IS NOW THE LARGEST OIL (SURPASSING ARABIA) & GAS PRODUCER IN THE WORLD.
Russia Tops Global Oil Production
|Russia is pumping more oil than ever before, counteracting OPEC efforts to influence the crude price with lower production levels.
Russia in September produced 10 million barrels of oil per day, a new record for the country that recently surpassed Saudi Arabia as the world’s biggest oil producer.
The increase is due mainly to the opening of the Vankor field in the arctic. Operated by state-owned oil company Rosneft, the field is due to reach its peak production of 510,000 barrels per day in 2014; much of its oil will be delivered to China.
Russia’s higher oil production levels counteract OPEC efforts to raise the crude prices by reducing production. The International Energy Agency estimates that the OPEC countries in August produced just 8.2 million barrels per day.
The 12-member producer group, which accounts for nearly 40 percent of global crude supply, pumped 26.25 million barrels per day in August, 1.4 million barrels over the production target set a year ago. Despite the higher production in Russia and within OPEC, the oil price Wednesday was nevertheless stable around $71 a barrel.
This comes a few days after British newspaper The Independent reported that a secret plan is being drafted by China, Russia, France, Brazil and the Gulf states to replace the dollar as the pricing currency for oil by a so-called basket of currencies. Said basket would include the euro, the yen, the yuan and a future joint currency in the Gulf region. Several OPEC member states and Russia have denied the report, with experts saying the plan for a basket of currencies is highly unrealistic.
Meanwhile, demand for oil is expected to be stronger than expected in the remainder of the year and in 2010 as many large economies start to recover.
The U.S. Energy Information Administration Tuesday raised its outlook for world oil demand at the end of this year, nearly doubling its previous estimate to 410,000 barrels per day in the fourth quarter of 2009.
“Sustained economic growth in China and signs of a turnaround in other Asian countries continue to fuel expectations of a global recovery in world oil consumption,” the EIA said in a statement.
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MOSCOW, October 8 (RIA Novosti) – A Kremlin aide said on Thursday it could be advantageous to switch to non-dollar oil payments, but that he had not heard of any discussions on the issue.
Britain’s Independent newspaper reported on Tuesday that Russian officials had held “secret meetings” with Arab states, China and France on ending the use of the U.S. dollar in international oil trading.
“We have long been saying that there is some sense in creating the conditions for making ruble payments, including for oil, attractive,” Arkady Dvorkovich said. “The subject is worth discussing, but I do not know if specific talks on the issue are underway.”
According to The Independent, the countries are reportedly seeking to switch from the dollar to a basket of currencies including the euro, Japanese yen, Chinese yuan, gold, and a new unified currency of leading Arab oil producing countries.
“Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars,” the paper said.
The Independent said the meetings have been confirmed by Chinese and Arab banking sources.
“These plans will change the face of international financial transactions,” a Chinese banker told the paper. “America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate.”
The dollar plummeted on Tuesday after the paper’s article, while gold surged well above $1,000 an ounce in international trading.