Crude Slides After Russia Warns Of Production Increase: "Was Never Ready To Cut Output"

Tyler Durden's picture

Perhaps upset at the weekend's development, Russia has decided to rattle the global crude complex cage. Amid hopes of a freeze, Russia's energy minister Alexander Novak has reversed course and stated that Russia could "in theory" increase oil output and "was never ready to cut production." It appears things are rapidly breaking down between Russia and The Kingdom - which perhaps explains Obama's rapidly arranged trip to kiss the ring in Riyadh.


The oil market is not transparent enough, which leads to the demand-supply mismatch, Russia’s Deputy Prime Minister Arkady:

"The policy of certain countries regarding diversification of energy sources aimed at supporting local production is sometimes implemented inefficiently as it creates extra costs for consumers and changes the oil and gas market balance. From our viewpoint, the situation is not transparent enough as not the whole information is provided to consumers," he said.

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Ghost of PartysOver's picture

Wonder how long before The House Of Saud unleashes thier ISIS breathern on Russia.  Or Russia green lighs Iran to create serious issues?  Good times I am telling you.

poeg's picture

Green lights Iran? If the Saudi setup/funded two jets to crash into the Kremlin, Putin would be taking heads not giving head like Obama.

BorisTheBlade's picture

I don't know where you've been for the last 30 years, Saudis were supllying 'freedom fighters' ever since Afghan war to fight USSR and then Russia. Look at this pretty fella:

ISIS in their turn didn't make secret out of their plans to turn their efforts towards Caucasus after they're done with Syria. In fact they were boasting about it quite openly.

Volkodav's picture

where you been?  just born and dumb?

_ConanTheLibertarian_'s picture

Obama is going to kiss someone's ring. You know what ring I mean.

XAU XAG's picture

Yes the ring of fire after............Hot food

You know what I mean by Hot food



Kido's picture

oh bad news for crude ! wait for it.... 30c?what?

brada1013567's picture

Bingo! Crude did just rise by 30 cents.

Son of Captain Nemo's picture

Russia's energy minister Alexander Novak has reversed course and stated that Russia could "in theory" increase oil output and "was never ready to cut production".

Translation from Russian:

FUCK YOU Saudi Arabia...


FUCK YOU Israel...


FUCK YOU Brussels...

Let's see how much you have left in the "tank"!

God I love the Russians!!!!

conscious being's picture

Me too. Maybe it's time to try to tackle that alphabet.

Son of Captain Nemo's picture


I say that in earnest because the Russians are everything here and now that the United States is not!


Volkodav's picture

Russian simple learn alphabet is easy  

even basic speak not so much   try Russian Accelerator, is far best course


Ghordius's picture

"Accellerator"? that would be a Russian girl, I presume? still best way to learn a language, pillow talk

conscious being's picture

Ghordius, this is weird. Lately I find I keep agreeing with you.

conscious being's picture

Thanks V. I'm checking it out.

Ghordius's picture

that's a lot of "Fuck You"s

care to explain why Novak's statement that Russia is going to keep the flow of cheap spice to Europe on can be translated as "Fuck you Brussels"?

conscious being's picture

Because Brussels is trying to bring Russia down. Sanctions, blame for Ukraine, nixing pipeline deals. Brussels acts as a stooge for the AngloZionist West. Instead of embracing a liberated Russia at the end of the Cold War, the AZW went about looting the place and further impovrishing the Russian people. Now I'm not agreeing with you.

Ghordius's picture

Brussels can pretend to try as much as it wants, or even try in earnest, as I wrote above, Europe is Russia's customer number one

Sanctions? They are a pretense of sanctions. And Moscow secretly welcomes them, they keep national morale up

Ukraine? Was that a sisterly embrace, between Russia and Ukraine? We did not annex anything, Russia did, remember? Besides, Vicky Nuland was all over Ukraine, wasn't she? On behalf of the Biden Connection, with a heartfelt "Fuck the EU" when it came to what we wanted for Ukraine

Nixing pipeline deals? I could point out that Russia nixed a few pipeline deals too, in Syria, for example. Fact is that Germany and Russia are going to build a new pipeline among them... while Poland is furious about that

We did embrace liberated Russia. And we still trade with Russia, whatever Washington shouts about it

Russia, meanwhile, exerts lots of pressure on us, too, both on the propaganda front and elsewhere

but we do not impoverish the Russian People. mainly, it's three things that do it:

- the rise of Russian military spending (which might change to profits if more customers are found for the Russian MIC, starting with Iran)

- the new Russian policy of being more autarkic/self-sufficient (well, that's a national policy supported in Russia, so their biz)

- the price war between oil producers, mainly the Arabs and the Americans. there, btw, I do see and compute that Russia would really, really prefer to have a price somewhere in the middle of those two extremes

as a Russian reporter noted three years ago, it's believing in the fridge or the TV, and many Russians seem to prefer the TV. again, their biz

nobody can really "bring down" Russia. Napoleon could not, Hitler could not, and "Brussels" for sure not. only Russians can do that, and did it twice in the XXth Century

yes, we criticize Russia's government, from time to time. yes, we criticize Israel's gov too, from time to time. yes, we criticize Saudi Arabia's gov too, from time to time. and watch how difficult it is for us to criticize Turkey's gov... while needing Turkish support at the borders. and yet we do

and yes, we criticize the US' gov, too (and the UK's gov, too). last time we had a real showdown, for example, Bush and Blair tried to convince most of us that Saddam Hussein had WMDs. the result was a "coalition of the willing" and... freedom fries

conscious being's picture

Gordo, Europe is an occuppied AngloZionist colony and behaves accordingly. The case you are making is laughable. All kinds of deals were cancelled under orders from your true masters. No support was given to the poor people of Donbas. MH17 was shot down, killing many Euros, but Euro governments collaborated in suppressing the facts. I could go on, but I realize you are at times kind of an automaton. Spooky really.

Ghordius's picture


"No support was given to the poor people of Donbas."

aren't they supported... by Russia?

"MH17 was shot down, killing many Euros, but Euro governments collaborated in suppressing the facts."

and what facts do you expect would come out? that some bastard felt it was OK to shoot a civilian plane down? what exactly do you want? more animosity versus Ukraine and/or Russia?

nope, I can't say I understand your line of reasoning

Volkodav's picture

Russia has prevail Yukos appeal

brada1013567's picture

In the next few days you can expect one or all of the following: 1. A new crisis that curtails oil supplies. 2. More freeze/cut rumors. 3. Lots of talk and articles about oil and stocks decoupling. 4. Lots of talk and articles about low gas prices being good for the consumer. 5. Inexplicably higher oil prices. 6. Higher stock prices. 7. ZH running a story about Tankers doing something.

quadraspleen's picture



8. ZH running another "Oil is doomed" article

brada1013567's picture

Doomed I tell ya dooooooomed

brada1013567's picture

ZH is the Gartman for Crude

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) brada1013567 Apr 20, 2016 8:55 AM

That would have been funny if it weren't true

Al Huxley's picture

Nope!  The bulls are in a partying mood in the oil market, who fucking cares about production or strikes or supply and demand?  It's all irrelevant in today's world.  Bears will be left again, covered in bull jizz, wondering how the fuck this happened AGAIN, while the bulls leave with the money, the booze, the dope and the girls.

Cloud9.5's picture

The mime of price recovery in the oil sector is absolutely necessary to keep money in the game.  Without faith in rising prices no investments would be made.  Consequently it is imperative that higher prices be pushed as the logical outcome of the myth of increasing demand. Increased production of all liquids is being used to mask the simple fact that world oil production peaked in 2005.  By throwing in ethanol, methane kerogen and a host of other compounds the façade of growth is being held up.


“The case for lumping NGPL with oil supply is not very strong. In fact, given that little substitution is possible and the growth in the substitutes that are available is limited, the merging of NGPL with oil seems more like a facing-saving gesture on the part of those who have consistently been wrong on oil supplies and prices in the last decade. And, it seems to be a move of desperation by an industry that has been having trouble in recent years replacing its oil reserves. If investors caught on to the idea that oil companies are now essentially self-liquidating enterprises, valuations would be cut drastically. And that, of course, means that stock options and stock holdings for top executives would be devastated as would positions held by big investors.”


The fact that we are investing more and more of our net energy into energy production is being papered over by high finance and manipulation.  Energy is bleeding out of the system.  Therefore the levels of activity we previously maintained are no longer possible.  The net impact of peak production was the 08 crash and the current ongoing decline. World trade is declining as evidenced by the BDI.  Slight upticks are not trend changers.  Look at the overall trajectory in the last decade.



The evidence of the trend is all around us. First we have failed cities.  This will be followed by failed states to be followed by a failed nation.  The German Army focused on this in 2010.  Their recommendation:  plant a garden.

LoveTruth's picture

I said it earlier that no freezing means competition must be crushed and it is good for the big boys. 2 years from now expect oil above $70. 

Niall Of The Nine Hostages's picture

Of course it wasn't. Russia is seeing to her own interests. These interests are incompatible with an Islamic state's having the wherewithal to fund Islamic terror groups in Russia whose goal is to violently overthrow Russian government in large chunks of central Asia (just for starters) and replace them with Islamic states right on European Russia's doorstep.

Until Islam is relieved of the power to make war on civilization, the civilized world will never be at peace. Only Russia is in a position to do so. Uncle Sugar needs to get out of Russia's way.

This will end with the Russian flag flying over the ruins of Riyadh or the green flag of Islam flying over the Kremlin,  and the fall of Russia's nuclear arsenal into the hands of an Islamic state---which will, of course, mean the end of civilization as we know it at best, at worst the end of life on earth.