Russian Federation and OPEC agree to extend oil output cuts until end

Bloomberg Putin called the king of OPEC

Bloomberg Putin called the king of OPEC

In an attempt to boost prices, Opec, Russia and other leading oil producers have cut their total output by 1.8 million barrels per day since January.

"However, the targets on rebalancing the market have not been reached".

Recent OPEC/non-OPEC oil pact chatter had it that Saudi Arabia was pushing for an announcement of the cuts extension next week in Vienna, while Russian Federation was more hesitant about telling the market on November 30 how the participants in the deal would act. The deal participants are expected to meet in Vienna next week to further discuss the extension of their output curbs. The deal is expected to be officially announced on November 30.

One of the stumbling blocks for extending the OPEC-led deal is a boom in USA oil production C-OUT-T-EIA, which has jumped by 15 percent since mid-2016 to a record 9.66 million bpd.US producers, which scaled back output with the price slump after mid-2014, have ramped up production as oil prices climbed LCOc1.

WTI light sweet crude oil was up 73 cents at $58.75 a barrel, staying at 2-year highs.

According to Bloomberg's sources, now Russian Federation and Saudi Arabia have agreed on the need to announce some sort of a deal next week, but Russian Federation has insisted on additional phrasing in the extension deal that would link the size of the cuts to the state of the oil market. Venezuela's Oil Minister Eulogio Del Pino put the optimal price for crude at between $60 and $70 dollars a barrel.

But Moscow has had to deal with economic and social fallout caused by price falls in 2008-09 and since 2014, said Chris Weafer at Moscow-based Macro-Advisory.

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