{"id":629250,"date":"2018-05-27T03:53:38","date_gmt":"2018-05-27T03:53:38","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/27\/are-saudi-arabia-russia-going-to-turn-on-the-oil-tap-this-year\/"},"modified":"2018-05-27T03:53:38","modified_gmt":"2018-05-27T03:53:38","slug":"are-saudi-arabia-russia-going-to-turn-on-the-oil-tap-this-year","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/27\/are-saudi-arabia-russia-going-to-turn-on-the-oil-tap-this-year\/","title":{"rendered":"Are Saudi Arabia, Russia going to turn on the oil tap this year?"},"content":{"rendered":"<p><strong>Is the oil production tap about to be turned on?<\/strong> With oil still in the USD 80 neighborhood, Saudi Arabia and Russia are signaling that they may dial-up oil output this year. Saudi Energy Minister Khalid Al Falih said that it is likely production will ramp up in 2H2018, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-05-25\/saudi-minister-sees-likely-oil-supply-boost-in-second-half\">according to Bloomberg<\/a>. Whether the size of the supply increase is ultimately \u201ca mn, more, or less, we\u2019ll have to wait until June,\u201d when OPEC and its partners will meet, Al Falih said. \u201cWe\u2019re not interested in an endless rise in the price of energy and oil,\u201d Russian President Vladimir Putin <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-05-25\/putin-says-oil-at-60-suits-russia-as-opec-weighs-more-supply\">told reporters<\/a>. Oil prices at USD 60\/bbl fully suit Russia and the country doesn\u2019t want them to spiral higher, he added. Russian Energy Minister Alexander Novak said the output boost would start in the third quarter.<\/p>\n<p><strong>The comments had an immediate impact on Friday, sending Brent crude down USD 3 to below USD 67<\/strong> and vindicating investors who have reduced their oil positions.<\/p>\n<p><strong>Is the US exerting behind the scenes pressure to curb prices?<\/strong> Analysts are suggesting a tweet by Donald Trump from last month lambasting OPEC for raising prices may have helped nudge the Saudis to switch gears on oil. The US wasn\u2019t the only one, with India also pressuring the Saudis to start ramping up production, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-05-25\/under-pressure-from-trump-saudis-put-brakes-on-oil-price-rally\">Bloomberg says<\/a>.<\/p>\n<p><strong>A drop in oil prices would be good news for the 2018-19 state budget here at home. <\/strong>Every USD 1 increase in the price of a barrel of oil raises government energy spending in the coming budget by EGP 3-4 bn, we\u2019re told. The government had budgeted EGP 110 bn for energy subsidy spending at an average oil price of USD 55\/bbl<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is the oil production tap about to be turned on? With oil still in the USD 80 neighborhood, Saudi Arabia and Russia are signaling that they may dial-up oil output this year. Saudi Energy Minister Khalid Al Falih said that it is likely production will ramp up in 2H2018, according to Bloomberg. Whether the size [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7204],"tags":[72,74],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-629250","post","type-post","status-publish","format-standard","hentry","category-what-were-tracking-today","tag-enterpriseam","tag-what-were-tracking-today","wpautop","entry"],"acf":{"mongo_id":"18cc447f-95c2-4f23-b0cc-041c821e1d37","order":"0","is_powered_by":true,"section_story_id":"c2498400-ca56-425c-a878-d0d0d0c378e9","story_type":"1","photo_url":"","photo_position":"above","related_issue":[629243],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Are Saudi Arabia, Russia going to turn on the oil tap this year? - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2018\/05\/27\/are-saudi-arabia-russia-going-to-turn-on-the-oil-tap-this-year\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are Saudi Arabia, Russia going to turn on the oil tap this year?\" \/>\n<meta property=\"og:description\" content=\"Is the oil production tap about to be turned on? With oil still in the USD 80 neighborhood, Saudi Arabia and Russia are signaling that they may dial-up oil output this year. Saudi Energy Minister Khalid Al Falih said that it is likely production will ramp up in 2H2018, according to Bloomberg. 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