Saudi Arabia and Russian Officials Scheduled to Meet on Tuesday to Discuss Production Cuts
Tuesday is a big day for cooperation efforts being put in by the OPEC and non-OPEC oil producing countries as the energy ministers of Saudi Arabia and Russia meet in Qatar to discuss issues related to production cuts. Oil prices have dropped to their lowest in recent times and pressure is mounting on all the oil producers to take some action to prop up prices. The meeting between the officials of the two biggest crude-oil exporters in the world comes after started its first oil export to the European Union after the sanction lift, after more than three years.
Adding trouble to the already over supplied oil markets, during the weekend officials from Iran said the country had increased exports by 400,000 barrels per day.
Since the middle of 2014, crude prices have dropped greater than seventy percent. Last week, it slipped under $27 per barrel mainly aided by increasing supplies from producers like Russia, U. S., and OPEC members. However for countries like Russia, cutting down exports is not as easy as it seems due to practical problems. In Siberia, which is the country's main oil province, the winter temperatures fall lower than minus 40 degrees Celsius which provides a challenge for turning off the taps of the pipes which may freeze. Moreover, a long-term cut in output offers other risks as a long halted reservoir can be polluted with salts and residues.
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