Rebecca Roberts, 10/2/2008, Oil and Energy
Russia is currently the second largest oil producing country in the world; however, with the most recent oil prices depending on two main factors, (1) is on Saudi Arabia, which so happens to be the number one largest oil producing company, and (2) is on how the world oil market plays out.
The lowest prices of oil per barrel were at its lowest in 1998 at $10 a barrel and ever since it has been on the steady increase. There has been a slight slowdown in the economic development and fuel in consumption in the US and Western Europe; however, in China and India the energy demand continues to rise at a steady rate.
By 2005, Russia’s physical output of oil rose by 2%. The foreseeable future for Russia is that in 2009 they hope to produce an annual increase again of 2% from 9.7 – 9.8 million barrels a day. One major thing that Russia should do is raise the oil output to meet the rapidly growing domestic demand for fuel for both industry and car owners as oppose to maintaining current prices.
In September the first two weeks the domestic crude prices dropped 40% from month-to-month. By the end of September in Russia the government slashed the oil export duty to $372.2 per metric ton in hopes of making exports attractive again.
http://www.oilandgaseurasia.com/news/p/0/news/2818
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