Energy Blast – Dec 17th, 2008

The highly-anticipated OPEC meeting is being held today in Algeria, where members and non-members, including Russia, will discuss what is expected to be a significant cut in production – currently being reported at 2 million barrels per day – to try and raise the price of oil.  Russia’s oil majors have already voiced their support for a potential cut, whilst Mexico is keeping its intentions quiet although views a cut as ‘positive‘.  Despite another round of talks, Gazprom and Ukraine’s Naftogaz have yet to make progress in talks on natural gas deliveries to Ukraine in 2009 and the settlement of the country’s 2008 debt.  Mosenergosbyt, the state-controlled electricity sales company, says it is willing to accept delayed payments from its industrial clients.  Gazprom has signed a six-year general cooperation agreement with state nuclear corporation Rosatom, and is expected to post strong second-quarter profits.  GE Energy will supply power generation equipment for energy infrastructure and economic development as part of a $3 billion deal with Iraq.