Russia-OPEC deal: Easier said than done – IB Times
How many times over the last one year did we hear Russia come out in support of an OPEC deal…? ‘N’ number of times, right? And 8 out of 10 times oil prices rallied, only to deflate on disappointment. Every time, Iran was blamed for being stubborn and pouring the cold water over the possibility of a Russia-OPEC deal.
Is this as simple as it looks on the surface or there are deep layers that hide a reality about Russian attitude.
Gaurav Sharma, Oil Analyst at IB Times, quotes Ex-Saudi Minister Ali al Naimi, who in his book, has expressly stated that back in 2008 it was Russia which turned back on its own words and boosted its output despite agreeing to cut its output.
Sharma says ‘monetizing will take precedence’ in cash strapped nations like Russia and it would be very difficult to have them on board. From the trading perspective, Sharma warns that prices could drop as we head into the official OPEC meeting scheduled in the last week of November.
Watch this segment to know if the ‘OPEC –Russia deal’ should be trusted?
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