OPEC And Russia Will Probably Extend Oil Production Cuts At Upcoming Meeting

Russia’s President Vladimir Putin waves to the media prior to a meeting of leaders of the BRICS emerging economies at the Itamaraty palace in Brasilia, Brazil, Thursday, November 14, 2019. Pavel Golovkin, Pool via Reuters

CNBC: OPEC and Russia likely to extend oil production cuts at upcoming meeting

* OPEC and Russia, or OPEC Plus, meet in Vienna next week, and it is widely expected oil ministers will extend their production cut agreement to June or even the end of next year.
* There are rumblings that Russia has not been happy with the structure of the deal, and may want to find a way to limit participation.
* The meeting coincides with the initial public offering of Saudi Aramco, and there is also speculation Saudi Arabia may want to find a way to boost oil prices.

OPEC and Russia are likely to extend their oil production deal at least through midyear, but if they were to cut more output, as some speculate, it would blindside what has become a complacent market, analysts said.

The ministers head into the Dec. 5 and 6 meeting with oil prices near their highest levels in two months. OPEC and Russia and other allies have an ongoing agreement to reduce output by 1.2 million barrels a day, with the biggest cuts coming from Saudi Arabia.

“At this stage, it’s not perfect for a number of producers, but it’s not catastrophic either,” said Helima Croft, global head of commodities strategy at RBC. “We’re kind of treading water.”

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WNU Editor: Russia feels that OPEC members are taking advantage of the present oil production limits at Moscow's expense. And while there is some speculation in Russian media that Moscow will walk out at the next OPEC meeting, I still expect Moscow to keep to its commitments.