There's a good chance OPEC, Russia and other producers could deepen production cuts by as many as 500,000 barrels per day (BPD) when they agree to a new deal later this month, according to Citigroup.
Russian natural gas producer Gazprom and Chinese oil and gas company CNPC have contracted pre-development surveys with the intention to build underground gas storage (UGS) facilities in three provinces in China, Gazprom said on Monday.
The joint statement by the OPEC’s largest oil producer, Saudi Arabia, and its counterpart outside the cartel, Russia, that their output cut agreement needed to be extended until March 2018, drove crude oil price up over 2% on Monday.
Oil prices were little changed last Friday, as U.S. production was still rising, overshadowing hopes the global crude oil glut would drop on expected production cut extensions from OPEC and other producing countries.
Russia’s Gazprom said on Sunday it began construction of the TurkStream pipeline, which will run from southern Russia across the Black Sea to Turkey and Europe, while bypassing Ukraine, Kallanish Energy learns.