Home Finance Russia and OPEC Get Ready to Finalize Further Oil Production Cuts

Russia and OPEC Get Ready to Finalize Further Oil Production Cuts

Members of The Organization of the Petroleum Exporting Countries (OPEC) and those outside it are meeting in Vienna, Austria, today to finalize further cuts in the production of oil. It is believed that Saudi Arabia, the most powerful member of OPEC and Russia, the most influential nation outside the body, is going to lead the talks.

Saudi Arabia is primarily leading the move, and according to reports, the other members of OPEC have already agreed with the cuts yesterday. Sources suggest that production could be cut by as much as 500,000 barrels per day, and it is a measure that is going to be in place up until March next year.

While it is true that production cuts were expected, the quantum of cuts has left many analysts stunned. The move is aimed at stabilizing the price of oil, and it is expected to be finalized today post discussions with non-OPEC partners like Russia, among others. As the news broke, oil prices started rallying as well in the latest trading sessions.

Stephen Brennock, an oil analyst with PVM Associates, stated that the potential cuts had left the market a bit confused. He said, “It is fair to say that this agreement has left market players with mixed feelings.” He went on to explain his position in the note. He added,

On the one hand, the extent of these extra supply curbs surprised to the upside. On the other hand, there is concern that there was no mention of an extension to cuts beyond the current March 2020 deadline.

At one point, it was not clear whether the OPEC members had managed to agree with the cuts on Thursday after a joint press conference was canceled. It has emerged that Saudi Arabia, which has cuts if production, has asked nations like Nigeria and Iraq from overproducing.

Timmy Murphy
Timmy Murphy
Timmy is a crypto and finance analyst. He deals with finance news-stories. He has completed his graduation in accounting and Finance. He is also a blogger and is famous for his finance blog. For any issues, feel free to contact him at email: timmy@forexnews.world

Must Read

BCH is Now Available on Crypto.com Soft Staking

Crypto.com recently made a declaration that they have added Bitcoin Cash (BCH) to Crypto.com Soft Staking, which will enable Crypto.com Exchange users to enjoy...

Moonstake Partners with Ontology to Push Staking Growth

Moonstake Pte Ltd. is collaborating with Ontology, which is a high-performance public blockchain and distributed collaboration platform headquartered in Singapore. https://twitter.com/OntologyNetwork/status/1247047336322166786Moonstake primarily aims to develop...

Binance Lending Includes TRX and LTC as New Supported Assets

Binance Lending has announced the news about the entry of two new members to the list of supported assets on Flexible Deposits, i.e., Tron...

BitTorrent Products’ Usage Scales a New High in Q1

In big achievement for BitTorrent, the usage of its products has scaled a new high. Additionally, the products of BitTorrent have also accomplished several...

Metal Pay Adds Support to Binance USD (BUSD) on Its Marketplace

San Francisco-based leading crypto-focused payment settlement network, Metal Pay, has announced the news about the addition of one of the world’s most trusted stablecoin,...