Russia won't be joining OPEC permanently anytime soon
- 3 weeks ago
OPEC’s hopes to have Russia as a permanent partner have been dashed by the Kremlin’s Energy Minister, Alexander Novak.
Only recently OPEC and its allies agreed on a production cut, Novak himself flew back to Moscow to speak directly to Putin in order to get the nod as to whether or not accept OPEC’s agreement.
However, the U.S. has become the largest producer as of late, surpassing both Russia and Saudi Arabia, not something Russia has taken lightly.
"There is a consensus that there will be no such organization. That's because it requires additional bureaucratic brouhaha in relation to financing, cartel, with the U.S. side," said Novak earlier today, also mentioning that being a permanent partner to OPEC would mean too much red tape and increase the likelihood of being subject to U.S. sanctions.
With the production agreement struck in Vienna coming into action from January 1st it will be interesting to see how the markets will respond.
Source: Smart Trend Team