jpphilips:


Kachikwu is just a step closer to price stability, OPEC has less than 40% supply, the meeting should focus on encouraging members to invite more Ally producers into OPEC (countries like Russia and Mexico should be given priority due to their significant production), once OPEC controls about 60% of world oil output, production cut will not affect market shares significantly.

jpphilips:


Kachikwu is just a step closer to price stability, OPEC has less than 40% supply, the meeting should focus on encouraging members to invite more Ally producers into OPEC (countries like Russia and Mexico should be given priority due to their significant production), once OPEC controls about 60% of world oil output, production cut will not affect market shares significantly.

Scholes007:
thats a very valid point but wooing russia into opec especially now is not feasible. Why? Because western countries view it as a threat and that wouldn't be a good thing.

MagicBishop:


Even if the Russians want in on OPEC ( which they don't want to) do you think Saudi Arabia will be comfortable to relinquish their high status to Russia?

Never gonna happen.

Scholes007:
that way i said it would be good on opec. It will likely expose opec to serious vulnerablity on the longrun.

MagicBishop:


I don't understand you.

Pls elaborate

Scholes007:
sorry for the typo, i am using auto spell.

russia as we all know has been in cold war with the west, and oil & gas supply have been their major leverage against the west. Joining opec will mean expanding this leverage to west. Considering the west influence on some member states like saudi arabia, there will be a great fault line within the opec that will not be of any desirable effect especially now.

MagicBishop:


And why will Russia join OPEC?

Mexico is signatory to NAFTA ( North American Free Trade Agreement) . That alone bars them and Canada from joining the cartel.

Scholes007:
sorry for the typo, i am using auto spell.

russia as we all know has been in cold war with the west, and oil & gas supply have been their major leverage against the west. Joining opec will mean expanding this leverage to west. Considering the west influence on some member states like saudi arabia, there will be a great fault line within the opec that will not be of any desirable effect especially now.

MagicBishop:


The US wants in on the game and that's why they just lifted an embargo on US crude exports.

If there is one thing US shale producers and Russian gas energy want; it is an increase in crude pricing.

The only way to get that is to get a unanimous decision by OPEC ( which means getting Saudis to agree) to cut oil production.

As I said earlier, the Saudis out of deep sectarian inspired blind hatred towards Iran will never concede to any cuts as this will see Iran benefit from increasing Crude pricing from where their economy improves rapidly.

The only way to do this is to instigate a major conflict in Saudi Arabia (civil war, coup, or whatever armed crisis) that will significantly cut Saudi oil output.

In the long run it will be of benefits to both the Russians and the US for a major prolonged war to happen in the middle east involving both these countries either directly or via their proxies in Yemen, Syria and or Iraq.

The Russians and US will also profit by supplying arms to both sides (making more money) and will only step in diplomatically and militarily if either is getting an upper hand in other to prolong the conflict.

This is Putin's plan in Syria. If he wanted he could wipe out ISIS in a month but he is holding back using the full fury of Russian military arsenal and applying that which is just enough to stabilise his ally Assad and keep ISIS at bay so he can maintain Russian military presence in the ME.

I just hope the World powers don't have similar plans of war in Niger Delta as well.