Silver as an investment

Oil Price Drop Imminent If Moscow Says “No” To Extension

zerohedge.com / by Irina Slav via OlPrice.com / Nov 22, 2017 5:00 AM

As the November 30 meeting in Vienna of OPEC and its partners in the oil production cut deal nears, worry has returned among traders: one of the brokers of the deal might decide to walk out on the deal instead of participating in another extension.

We’re talking about Russia, the world’s top producer and exporter, who many believe played OPEC and specifically its leader, Saudi Arabia, by agreeing to a relatively minor production cut from its nearly record-high rate of production.

Reports emerged last week that Russia is considering a delay on the decision to extend the cut.

That’s after Energy Minister Alexander Novak hinted more than once that from Moscow’s perspective, this decision is far from urgent. With a budget based on Brent at US$40, Russia is indeed in a sweet spot compared with its partners in the deal: it can remain in the black at any price above US$40.

READ MORE

The post Oil Price Drop Imminent If Moscow Says “No” To Extension appeared first on Silver For The People.