Putin: Russia to Continue Cooperation with OPEC+

Russian President Vladimir Putin speaking at the Russian Energy Week forum in Moscow on Thursday (EPA)
Russian President Vladimir Putin speaking at the Russian Energy Week forum in Moscow on Thursday (EPA)
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Putin: Russia to Continue Cooperation with OPEC+

Russian President Vladimir Putin speaking at the Russian Energy Week forum in Moscow on Thursday (EPA)
Russian President Vladimir Putin speaking at the Russian Energy Week forum in Moscow on Thursday (EPA)

Russian President Vladimir Putin said on Thursday that his country will continue to develop cooperation with the Organization of the Petroleum Exporting Countries (OPEC) and its allies known as OPEC+, as well as members of the Gas Exporting Countries Forum (GECF).

Putin also said Russia is fulfilling its obligations to supply energy resources to the global market.

The Russian President was speaking at the Russian Energy Week before a panel of top ministers from OPEC+ called the Joint Ministerial Monitoring Committee is scheduled to meet on Oct. 2 to review the market and is not expected to make any changes to policy.

Russian Deputy Prime Minister Alexander Novak told Reuters on Thursday that there were no changes to OPEC+ plans to start phasing out oil production cuts from December.

OPEC+, which groups OPEC members and allies such as Russia, is scheduled to raise output by 180,000 barrels per day in December. Iraq and Kazakhstan have pledged to cut 123,000 bpd in September to compensate for earlier pumping above agreed levels.

OPEC+ sources told Reuters on Thursday that the producer group is set to go ahead with a December oil output increase because its impact will be small should a plan for some members to make larger cuts to compensate for overproduction be delivered in September and later months.

Speaking at the Russian Energy Week, Putin said on Thursday, “Russia is fulfilling its obligations to supply energy resources to the global market. It plays a stabilizing role in it, participating in such authoritative formats as OPEC+, and the GECF.”

He added: “And we will certainly continue this cooperation with our partners.”

Putin praised cooperation with the BRICS group of countries, which Moscow sees as a counterbalance to the West, adding that Russia will continue cooperation with the OPEC+ oil producers.

Putin also acknowledged difficulties in payments for Russian energy exports, for which “friendly” counries, which have not introduced sanctions against Russia, account for 90%.

Russian oil and gas sales account for around a third of total state budget revenues and have been crucial for underpinning country's economy, which faces multiple sanctions from the West over the military conflict with Ukraine.

Meanwhile, Russian Deputy Prime Minister Alexander Novak told reporters on the sidelines of Russian Energy Week that all countries participating in the OPEC+ deal are currently in full compliance with their respective obligations, Russian, according to the Interfax news agency.

He said Russia aims to be producing 540 million tons of oil per year by 2050 in the baseline scenario, but this amount might be adjusted depending on the country's obligations within OPEC+.

“Indeed, 540 million tons is the baseline scenario for which we're aiming [for oil output by 2050], but with a caveat taking into account cooperation with our partners in OPEC+. We have no objective to flood the market if it does not require this. But [it also works] the other way, to give the market additional resources if this is required,” Russian Deputy Energy Minister Pavel Sorokin said.

He said Russia is not worried about potential growth of demand in the period to 2030 or the period to 2050.

“In our view, it's fairly substantial. It's at least 5 million-7 million bpd, meaning about 4.5%-5.5% from current consumption to 2030. Subsequently, we're talking about around 5% additional growth to 2050,” Sorokin said.



ECB to Look Past Trump Risk and Push on with Rate Cuts

The ECB is confident that inflation is heading towards its target. Kirill KUDRYAVTSEV / AFP
The ECB is confident that inflation is heading towards its target. Kirill KUDRYAVTSEV / AFP
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ECB to Look Past Trump Risk and Push on with Rate Cuts

The ECB is confident that inflation is heading towards its target. Kirill KUDRYAVTSEV / AFP
The ECB is confident that inflation is heading towards its target. Kirill KUDRYAVTSEV / AFP

Despite US President Donald Trump's saber-rattling, the European Central Bank is set to press on with interest rate cuts Thursday as officials increasingly voice confidence that the fight against inflation is on track.

The central bank hiked borrowing costs aggressively from mid-2022 to tame runaway energy and food costs, but is now bringing them back down as price rises slow and the eurozone economy looks weak.

ECB policymakers are expected to cut their benchmark deposit rate by a further quarter point to 2.75 percent on Thursday, its fifth reduction since June last year.

Recent upticks in inflation -- such as a jump to 2.4 percent in December, above the ECB's two-percent target -- have caused some jitters, AFP reported.

But ECB officials have sounded upbeat that the battle to control the pace of price rises remains on course.

"We are confident of seeing inflation at target in the course" of this year, President Christine Lagarde said in an interview with US broadcaster CNBC at the World Economic Forum in Davos.

The ECB announcement comes a day after the Federal Reserve paused its rate cuts after inflation in the United States ticked up, despite pressure from Trump to further lower borrowing costs.

Felix Schmidt from Berenberg Bank was among economists predicting a fresh rate cut by the ECB Thursday, believing that inflation will ease in 2025.

Falls "in energy prices in particular will push inflation towards two percent as the year progresses," Schmidt said.

Focus on stumbling eurozone

As high rates increasingly pressure households and businesses, the ECB's focus is now firmly on supporting growth in the eurozone, which is languishing amid a manufacturing slowdown and tepid consumer demand.

The poor performance of traditional European powerhouse Germany has weighed heavily, with the collapse of the government in Berlin and early elections adding to the uncertainty.

Political turbulence in heavyweight France, where a new government took office in December following the ouster of its predecessor, is also muddying the outlook.

But the biggest question mark for 2025 is the return to the White House of Trump, who has threatened sweeping tariffs on all imports into the United States, including from the EU.

Any new duties on EU exports to the world's biggest economy could hit the eurozone hard, while the bloc is already under pressure.

Trump "presents a risk," said Berenberg's Schmidt.

The president however appeared to be using tariff threats towards the EU "more as a prelude to negotiations, which means that they can be averted by making certain concessions", Schmidt said.

Lagarde is not expected to offer too many clues about the ECB's next moves as she stays true to the central bank's recent stance of making decisions based on the latest data.

Most analysts, however, believe the ECB will cut rates at least at its next two meetings -- on Thursday, and again in March.

But what happens beyond that is "less certain", said Stephanie Schoenwald, an economist at KfW Research, predicting the "unity" among ECB governing council members "could be over in the spring".

It was already easy to spot different views about how far to go with cuts and "what risks to European price stability emanate from US tariff policy", Schoenwald said.