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Russia says OPEC+ deal revival possible if other countries join in – RT

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A new agreement to stabilize oil markets is possible if more nations support the initiative, according to the head of the Russian Direct Investment Fund (RDIF), Kirill Dmitriev.

In an interview to Reuters, the sovereign wealth fund chief said that coronavirus epidemic has become a “perfect storm” to trigger a new global financial crisis that will result in recession. To offset the economic fallout of the outbreak, countries should unite, including in imposing new output curbs to end the oil market turbulence.




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Russia, which is not a member of the the Organization of the Petroleum Exporting Countries (OPEC), was one of the key supporters of the production cut pact with the alliance, Dmitriev stressed, adding that the deal brought more than 10 trillion rubles (nearly $127 billion) to the country’s budget. Earlier this month Moscow and the OPEC kingpin, Riyadh, failed to agree on a new deal, sending oil prices to multi-year lows.

“It was not Russia that made decision to boost output and withdraw from the OPEC+, but we [the RDIF] believe that we can back to the deal,” Dmitriev said, adding that Russia maintains dialogue with Saudi Arabia, as well as with some other nations.

“We see that if the number of OPEC+ members will increase and other countries will join there is a possibility of a joint agreement to balance oil markets,” he added without elaborating which countries could join the deal.




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Meanwhile Saudi Arabia said it had no contact over the possibility of a new agreement on oil production caps, as well as enlargement of the deal, at least at the energy ministers level.

Oil prices have been tumbling since the beginning of the month as the failure of Vienna talks was taken as the beginning of a full-scale oil price war — the claim that was later denied by Moscow. Both benchmark brands, WTI and Brent, were trading lower on Friday, ending the week at $21.51 per barrel and $27.95 per barrel respectively.

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U.S. Oil Production To Fall More Than Expected This Year – OilPrice.com

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U.S. Oil Production To Fall More Than Expected This Year | OilPrice.com

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

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    U.S. crude oil production will drop by an average of 990,000 barrels per day, according to the Energy Information Administration, for an average of 11.26 million bpd. That is a far greater loss than the agency expected during its previous forecast made in the July Short Term Energy Outlook

    In July, the EIA had forecast that crude oil production in the United States would fall by an average of 620,000 barrels per day for the full year 2020.

    The caveat? That the August STEO “remains subject to heightened levels of uncertainty because mitigation and reopening efforts related to the 2019 novel coronavirus (COVID-19) continue to evolve,” the EIA warned.

    The assumptions for this month’s STEO were based on macroeconomic forecasts from IHS Markit, which assumes that GDP fell 5.2% in H1 2020, and will rise from Q3 2020 through 2021.

    In addition to the reduced outlook for U.S. oil production, the STEO sees high crude inventory levels and excess production capacity as a drag on oil prices in the coming months.

    The EIA’s estimate for global liquid fuels production came in at an average 91.8 million barrels per day in Q2—8.6 million bpd less than the same period in 2019, driven by production quotas for OPEC and reduced production in the United States due to low oil prices.

    The EIA, however, is expecting U.S. production to average 11.14 barrels per day next year, a small decline than what it was forecasting last month. That is as U.S. oil demand next year is expected to rebound by 1.57 million bpd to 20.03 million bpd.

    By Julianne Geiger for Oilprice.com

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      Former Starbucks employee sues for unpaid OT on behalf of store managers – Business News – Castanet.net

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      A former Starbucks Canada employee is suing the company for unpaid overtime for himself and other store managers.

      Trevor Hopman is the lead plaintiff in a proposed class action that claims Starbucks was wrong to class store managers as exempt from overtime pay for work in excess of 44 hours per week.

      Hopman worked for Starbucks in Toronto from 2010 through 2017 and is making the claim on behalf of all current and former managers at Starbucks-owned stores in Ontario from Oct. 1, 2014 or later.

      The suit, filed Aug. 7 by Toronto-based Goldblatt Partners, asks the court to declare that Starbucks violated Ontario’s Employment Standards Act.

      The claim, which requires court certification to proceed as a class action, seeks $50 million in general damages and $10 million in punitive damages — although it leaves the amounts to the court’s discretion.

      A Starbucks representative says the company is aware of the suit and will respond to its allegations in the course of litigation.

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      Oil Prices Leap Higher On Bullish Inventory Data – OilPrice.com

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      Oil Prices Leap Higher On Bullish Inventory Data | OilPrice.com

      Irina Slav

      Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

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        Crude oil prices got another lift today after the Energy Information Administration reported a crude oil inventory draw of 4.5 million barrels for the week to August 7.

        At 514.1 million barrels, inventories remain above the five-year average for this time of the year despite several hefty weekly draws, including one of 7.4 million barrels for the first week of August. Analysts had expected the authority to report an inventory draw of 3.2 million barrels.

        The EIA report comes on the heels of the American Petroleum Institute’s weekly estimate, which saw inventories had shed 4.4 million barrels in the week to August 7, pushing prices higher.

        In gasoline, the EIA reported an inventory decline of 700,000 barrels for last week, compared with a moderate increase of 419,000 barrels for the previous week. Gasoline production last week increased, to 9.6 million barrels daily, from 9.3 million bpd a week earlier.

        In distillate fuels, the authority estimated an inventory draw of 2.3 million barrels for the week to August 7, which compared with a build of 1.6 million barrels for the previous week, Distillate fuel production stood at an average of 4.8 million bpd last week, compared with 4.9 million bpd a week earlier.

        Distillate fuel inventories have been slower than gasoline ones to come down and they remain high above the seasonal five-year average, Reuters’ John Kemp noted last week. At the time, distillate fuel inventories were close to 180 million barrels, the highest since the early 1980s, and 38 million barrels above the five-year average.

        Amid this buildup of distillates, caused in no small part to the still continuing depression in air travel, refineries processed 14.7 million barrels daily of crude oil last week. This was up slightly on the previous week, when refineries in the U.S. processed 14.6 million barrels of crude daily.

        Brent crude was trading at $45.22 a barrel at the time of writing, with West Texas Intermediate at $42.40 a barrel, both slightly up on Tuesday’s close.

        By Irina Slav for Oilprice.com

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