Head of Russia's Rosneft says OPEC+ could speed up oil output hikes by a year
ST PETERSBURG, Russia, June 21 (Reuters) - OPEC+ group of leading global oil producers could bring forward its output hikes by around a year from the initial plan, Igor Sechin, head of Russia's largest oil producer Rosneft (ROSN.MM), opens new tab, said on Saturday.
He also said that the decision by the OPEC+ to speed up output increase now looked far-sighted and justified in the light of the confrontation between Israel and Iran.
The Organization of the Petroleum Exporting Countries and its allies, led by Russia, shocked oil markets in April by agreeing a bigger-than-expected output hike for May despite weak prices and slowing demand.
OPEC+ has since decided to continue with more than planned hikes.
"The announced increase in production since May of this year is three times higher than the alliance's initial plan. In addition, the entire increase in OPEC+ production could be shifted a year ahead of plan," he said without elaborating.
"The decision taken by OPEC leaders to forcefully increase production looks very far-sighted today and, from the market's point of view, justified, taking into account the interests of consumers in light of the uncertainty regarding the scale of the Iran-Israel conflict," he added.
OPEC+ crude output represents about 41% of global oil production. The group's main objective is to regulate the supply of oil to the global market.
Having spent years curbing production, eight OPEC+ countries made a modest output increase in April before tripling it for May, June and now July.
Besides the 2.2 million bpd cut that the eight members started to unwind in April, OPEC+ has two other layers of cuts that are expected to remain in place until the end of 2026.
Oil prices had initially fallen in response to the OPEC+ decision to increase oil production, but the outbreak of an aerial war between Israel and Iran has so far been the main factor behind their return to around $75 per barrel, levels unseen since the start of the year.
Speaking at the St. Petersburg International Economic Forum, Sechin, a long-standing ally of Russian President Vladimir Putin, also said there will be no oil glut long-term despite the production rise due to low stockpile levels, though rising usage of electric vehicles in China might hit oil demand.
Putin said on Friday he shared OPEC's assessment that demand for oil will remain high. He also said that oil prices had not risen significantly due to the conflict between Iran and Israel, and that there was no need for OPEC+ to intervene in oil markets.
Sechin also said Rosneft had already budgeted the oil price of $45 per barrel for this year, the level the European Union eyes as the new price cap on Russian oil imports, which is now set at $60.
($1 = 0.8679 euros)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
30 minutes ago
- Telegraph
Immigration is the biggest burden on NHS, say Labour voters
Labour voters now believe immigration is the biggest burden on the NHS. Britons who backed Sir Keir Starmer's party at the general election last year think high levels of immigration are having more of an effect on the health service than the ageing population. A poll of 2,000 Labour supporters by Merlin Strategy also found that one in five Labour voters would now consider casting their ballots for Reform UK. It comes as Nigel Farage's party continues to enjoy a comfortable opinion poll lead after promising to effectively freeze non-essential migration and put an end to illegal Channel crossings. Research carried out on May 24 asked people who voted Labour in 2024 which of five factors they believed was 'the biggest burden' on the NHS. Some 24 per cent said high levels of immigration, with 22 per cent saying the mental health crisis. Thirteen per cent said a lack of social care provisions, while 12 per cent blamed junk food and obesity. A further 10 per cent said the biggest burden was people vaping. The remaining 19 per cent did not pick an option or said they did not know. Sir Keir said in a major speech last month that record levels of net migration to Britain in recent years had placed a heavy strain on the country's public services. Maxwell Marlow, the director of public affairs at the Adam Smith Institute, which commissioned the poll, said: 'It is clear that the British people have felt the impact of mass immigration on healthcare. 'Unless the government moves quickly, urging immigrants to purchase private health care as a requirement for any visa other than tourism, then they will continue to hold the Government accountable for the very rapid deterioration in their access to healthcare.' Sir Keir has been criticised for a lack of vision during his first year in office, with only 51 per cent of Labour voters saying the Government was prioritising issues that mattered to them. More than one in four (28 per cent) now regretted voting Labour and more than one in five (22 per cent) were now considering whether to vote for Reform at the next election. Two in five respondents (40 per cent) said they approved of Mr Farage, while 41 per cent disapproved. Scarlett Maguire, the director of Merlin Strategy, said: 'Labour voters are clear that they want to see action on cost of living, healthcare, and immigration. 'The Government needs to show that it is in tune with these priorities and that it understands what matters to their core voters.' Merlin Strategy also conducted a focus group in Runcorn and Helsby, one of the safest Labour seats at the 2024 election, before the party lost the seat to Reform by six votes at last month's by-election. Respondents said Sir Keir's Government was 'afraid of upsetting people', while another member of the group said: 'I don't think they give a toss about us.' The group were also unconvinced by the timing of Sir Keir's plans to clamp down on tobacco and vapes, which have banned disposable vapes and will raise the smoking age by one year, every year. 'How is that really relatable to the working person?' one member asked, adding that it was 'just something shiny to put in the media'.
Telegraph
30 minutes ago
- Telegraph
European puppy-smuggling gangs targeted by Government
European puppy-smuggling gangs are being targeted by new legislation capping the number and age of dogs that can cross the border into Britain. The Government-backed private members' bill will close loopholes that were exploited by the gangsters before Brexit, when the UK was a member of the EU pet passport system. The UK is expected to rejoin the EU passport for dogs, cats and ferrets scheme as part of Sir Keir Starmer's reset deal with Brussels. 'We would urge the Government to ensure that the UK-EU agreement does not have a negative impact on the measures included within the Bill,' warned Claire Calder of Dogs Trust. The passport was abused by criminals, many from Eastern Europe. They used forgeries or corrupt vets signing the travel documents without the proper checks to bring hundreds of thousands of poorly treated puppies into Britain. The Government insists the Bill, which has its third reading on July 3, will prevent a surge in puppy smuggling after the UK rejoins the scheme. Dr Danny Chambers, a Liberal Democrat MP and vet, said: 'So long as my Animal Welfare Bill continues to enjoy broad cross-party support and we get it passed into law, then when combined with pet passports, I'm fully confident the government will have the necessary powers to properly crack down on puppy smuggling.' The Animal Welfare (Import of Dogs, Cats and Ferrets) Bill raises the minimum age for commercially imported puppies and kittens from 15 weeks to six months. It gives the Government powers to ban the import of heavily pregnant and mutilated dogs and cats. It cuts the number of dogs, cats and ferrets that can be brought into Britain to five per vehicle or three per foot or air passenger. Currently there is a five animal limit per person, rather than per vehicle. A Government spokesman said rejoining the pet passport scheme would make taking pets on holiday easier and cheaper and that the Bill 'will end puppy smuggling'. Senior Tories in Boris Johnson's government hailed Brexit as an opportunity to end puppy smuggling, but a bill to curb the illegal imports was shelved in 2023. The trade has continued even though Brexit meant far more stringent and costly health checks and paperwork requirements to move animals between the EU and UK. The number of pets involved in 'non-commercial' moves to the UK rose from 100,000 in 2011 to more than 320,000 in 2023, raising concerns that puppy smuggling was rife. The EU is working on new legislation to improve minimum common standards for breeding and keeping cats and dogs and to improve cross-border traceability. But there were warnings this week that it won't stop European 'puppy mills' because it does not cover breeders with three litters or fewer. Animal rights campaigners say that it is about 80 per cent of all breeders and that just one unregulated breeder can produce 100 puppies over one animal's lifetime. The RSPCA said it hoped the UK would be back in the EU pet passport scheme by the summer, but added that proper border enforcement was vital. 'Whilst the Government supported Bill raising the minimum age for puppy imports to six months will help enormously tackle the illegal puppy trade, it must be backed up with well-funded enforcement controls,' said David Bowles, of the RSPCA. Northern Irish politicians this week warned that the region could become a back door into the UK for puppy smugglers because of its Brexit deal, which keeps the border with EU member Ireland invisible. Ulster Unionist Party MLA Robbie Butler said of the Bill: ' What we risk doing here is creating an alternative route where animals are brought legally into the Republic, then re-registered, and quietly moved across the border into Northern Ireland and on to Great Britain without triggering enforcement.'
Telegraph
an hour ago
- Telegraph
How expats can avoid a financial headache when returning to the UK
Have you moved back to the UK from abroad and faced difficulties sorting your finances? Get in touch money@ In 2024, as many as 77,000 Britons left the UK, according to government figures. But whether it was in search of adventure, love or work, it won't be a permanent move for many, with estimates suggesting that around 30pc of expats will return home within three years. It doesn't matter how good the weather or lifestyle is, the pull of home can be strong. If you've got children, you might want them to be schooled here, while older expats may want to return to family, friends and free healthcare. However, those expats who make the move back to the UK can find that their return is fraught with financial challenges – especially if they didn't keep a UK bank account or maintain a property at home. 'Returning British expats can face hurdles when re-establishing their financial footprint in the UK,' says John Webb, the consumer expert at Experian. 'One of the main challenges is the lack of recent UK credit history, which can affect applications for things like phone contracts, credit cards and mortgages. 'If lenders don't have much information to assess your creditworthiness, it can make getting credit at good rates more challenging. This can often be the case for returning expats who have something called a 'thin file'.' You'll also need to think about tax, your pension and any investments too. Here Telegraph Money explains the obstacles you might encounter, and shares some ideas for how to ease the move. Finding a home and getting a mortgage Be realistic about your finances Register to vote Open a UK bank account Get a SIM-only phone contract Take out a credit card Transferring pensions Managing tax and investments Finding a home and getting a mortgage Laura Doulton, of Clifton Private Finance, says returning expats are often treated as 'mortgage pariahs' by mainstream lenders. 'Even if they've been earning good salaries and paying rent or mortgage payments abroad without issue, UK banks view them as high-risk because they lack a recent UK credit history. Many discover their excellent credit record from living in Dubai or Singapore means nothing to a UK lender.' However impressive your overseas career might look on LinkedIn, it might not be enough to wow lenders. 'Lenders want to see stable UK employment, but returning expats may be starting new jobs or working for international companies with complex pay structures. This creates a Catch-22 situation where they need a UK address to get a mortgage, but need a mortgage to secure that address.' The key is to give yourself time and consult a mortgage broker who specialises in dealing with expats. 'We guide clients to provide comprehensive documentation of their overseas financial history and work with lenders who will consider foreign income and employment contracts,' says Doulton. Louis Levine, a senior mortgage broker at UK Expat Mortgage, a part of Orton Financial, agrees. 'The other hiccup can be that you're starting a new job that hasn't commenced yet, so we often need to prioritise lenders that are more flexible on credit history and can accept only one month's payslips as income evidence for example. Private banks are much more lenient on this for the right clients.' Doulton says she recommends clients kick the process off around four to six months before they come home. Alternatively, you can consider renting first but, as Levine points out, 'with most rental contracts lasting a minimum of 12 months (or six months at best) it's a logistical complication'. Be realistic about your finances Before you start looking for homes, it's important to think about affordability – both in terms of how much property costs in the UK and the level of disposable income you will have, after HMRC has taken its slice. Doulton says it's not unusual for clients to suffer affordability shocks, particularly those who are returning from tax-free jurisdictions such as the UAE or countries with significantly lower tax rates. 'Someone earning £100,000 in Dubai takes home considerably more than someone earning the same in London. When they return, their net income can drop by 30-40pc immediately due to UK tax obligations.' She adds: 'It's important to note that if a client returns to the UK but continues to earn in say dollars or dirhams, lenders will apply a haircut to their income to allow for currency fluctuation, so this can affect their borrowing power further.' Register to vote In addition to giving you the opportunity to vote in local and national elections, joining the electoral roll can boost your credit score – helping you get everything from a phone contract to a credit card or mortgage. To register to vote, you will need an address, which could be problematic if you don't yet have a permanent residence. If you were registered to vote as an overseas voter, you will still need to re-register once you have a permanent address back in the UK. Open a UK bank account Many expats keep a UK bank account, but if you haven't, you'll need to prioritise opening one as soon as you can. 'Once on the electoral roll, use this to apply for a UK bank account,' suggests Levine. 'Ensure it's an account that reports to UK credit rating agencies like Experian.' Depending on the bank, you may be able to open a UK current account before you arrive. HSBC, for example, lets you have accounts in different countries and lets you easily transfer money between them. Get a SIM-only phone contract A new phone contract will be crucial in helping you find your feet when you first get back, but you might encounter a problem with some deals. 'Phone contracts often require a credit check, and without a recent UK credit history, providers may be hesitant to offer a contract. Starting with a SIM-only deal can be easier, and help build your credit profile,' says Webb. Take out a credit card Spending money on a credit card and making timely repayments, can be a helpful way of padding out a thin credit history and give your score a boost. 'It's a good idea to look for a credit builder card, which is designed for people with limited credit history,' says Webb. 'Using it responsibly – keeping balances low and making payments on time – can help demonstrate reliability to lenders.' Most comparison sites will also be able to tell you which cards you'll be eligible for, without damaging your credit score. Transferring pensions If retirement is still a long way off, what you need to do with your pension might not feel immediately pressing – especially when you're dealing with challenges such as finding somewhere to live. Nonetheless, it's something that needs attention sooner rather than later. David Denton, of financial planners Quilter Cheviot points out that lots of returning expats believe that their pensions will seamlessly follow them, wherever they go. The reality, he says, is much more complex. 'If you've built up an overseas pension, you'll need to understand the local rules around transfers and whether your scheme qualifies for a transfer to a UK-recognised provider. Not all overseas pensions are eligible, and tax charges can apply if you get it wrong. 'A financial adviser who specialises in cross-border planning can help you obtain the scheme documentation, explain your options, and model the impact of transferring versus leaving it where it is.' The UK state pension Your entitlement to the UK state pension, meanwhile, will depend on how many years of National Insurance contributions you'll have under your belt when you eventually reach state pension age. To get the full amount, you'll need 35 years. If you have between 10 and 35 years, you'll get a pro rata payment. You'll only end up with no state pension in the UK if you rack up less than 10 years of contributions (either by way of payments from earnings or credits if you were claiming certain benefits). That means it's important to get a state pension forecast to find out where you stand. Denton adds: 'You may be able to make voluntary contributions to fill in any gaps and boost your entitlement.' However, while your entitlement to the UK state pension may have been impacted during your absence, you may have been building up entitlement to an overseas scheme. Denton explains: 'If you've spent time working abroad, you may also be entitled to a state pension from that country. It's important to check whether the UK has a social security agreement with the country you've worked in, as this can affect whether your overseas contributions count towards your UK entitlement or whether you can claim two separate pensions. 'Understanding the interaction between systems is key to avoiding disappointment when you reach retirement age.' He adds: 'For your overseas state pension, it's best to contact that country's pension authority. You'll usually need to provide records of your work history and tax ID. Some countries will coordinate with the UK to streamline claims, while others require completely separate applications, so timing and paperwork can get complicated without help.' Managing tax and investments What could give you an even bigger headache and a shock is tax. Denton warns: 'If you've been in a lower-tax jurisdiction, the UK's income tax, plus things like dividend tax and capital gains tax, can come as a surprise. 'If you've retained overseas assets or income streams, those can also create complications, as the UK taxes you on your worldwide income once you're a resident again. It's crucial to get ahead of the UK tax rules before you return, not after.' Finn Houlihan, the managing director at wealth adviser, AAF Financial, recommends getting specialist tax advice. He suggests starting the process 12 to 18 months before you come home. 'It would be reasonable to assume that the date you will become a UK tax resident would be the date you physically arrive in the UK. However, this would be far too simple for the UK tax authorities. The date you become a UK resident is dependent on your particular circumstances and is assessed under legislation known as the Statutory Residence Test (SRT).' The basic rule for the SRT is that an individual will be resident in the UK for a whole tax year. However, he adds that there are certain circumstances where 'split-year treatment' can be claimed. 'For example, when an individual comes from abroad and starts to work, split-year treatment enables part of a tax year to be taxed as a non-UK resident and the other part to be taxed as a UK resident.' When it comes to investments, Houlihan says that the rule of thumb is to crystallise your gains while you're still non-resident. 'Problems arise if this step is missed and the individual could bring all the gains back into scope of UK tax which could have easily been avoided. The same applies for bank accounts, any interest due should be paid out whilst non-resident.' Before returning home, Houlihan says it's important to work with an adviser to agree the following: Identify the date you will become UK resident for tax purposes. Review all assets and income streams to understand how you will be taxed once you become UK resident. Consider the appropriate restructuring of assets such as pensions, properties, investments and life assurance. Identify and undertake any pre-residence planning opportunities available. He adds: 'Generally most problems can easily be avoided with good planning and advice.'
