Energy Blast – Dec 12th, 2008

Sparking several reports speculating that Russia will join OPEC, President Dmitry Medvedev has signaled a possible reversal of the Kremlin’s oil independence, suggesting that Russia could cut oil output and join ‘current organizations of producers‘ to bolster international oil prices.  Medvedev made it clear, however, that any group action would be taken in Russia’s interests alone.  Russia may join the next OPEC meeting this month in Algeria.  Power consumption and output both fell in Russia last month, largely due to growth and production cuts.  TNK-BP will cut investment by $1.1 billion next year.  Lukoil is planning to develop Venezuela’s Junin-3 oil deposit on its own.  The slump in the price of crude oil could hit investment projects for China’s major oil companies.