Home Business Russia and OPEC could abandon oil pact to fight market share

Russia and OPEC could abandon oil pact to fight market share

Stock Photo A worker labels barrels of oil lubricant at the state company Pertamina in Cilacap, Indonesia. November 6, 2017. This image was delivered by a third party. Antara Photo / Rosa Panggabean / via REUTERS.

Russia and OPEC may decide to boost their production to fight market shares against the United States, but prices could fall as low as $ 40 per barrel, Russian news agency TASS said, quoting Finance Minister Anton Siluanov on Saturday. .

"There is a dilemma. What should we do with OPEC? Losing the market, which is being occupied by the Americans, or abandoning the agreement? "Siluanov said in statements made in Washington, according to TASS.

"(If the agreement is ended) oil prices will fall, then new investments will be reduced and US production will fall, because the cost of shale production is higher than the traditional one," he added.

Siluanov said oil prices could plummet to $ 40 per barrel or even less for up to a year.

As indicated, has not yet taken a decision on the pact, while saying he does not know if the countries that make up the Organization of Petroleum Exporting Countries would be happy with this scenario.

OPEC, Russia and other allied producers, an alliance known as OPEC, are reducing pumping by 1.2 million barrels per day (bpd) since January 1 and for six months. They are scheduled to meet on June 25 and 26 to decide whether to extend the pact.

The combined rebates in the extraction have helped boost a 32 percent rise in oil prices this year, to almost $ 72 a barrel.

This situation caused the president of the United States, Donald Trump, to ask OPEC to relax its efforts to support prices. The group said the cuts should be maintained, but there are signs that this position is softening.

Earlier in the week, sources familiar with the situation told Reuters that OPEC could raise its oil output from July if supplies from Venezuela and Iran continue to plummet and prices continue to rise. Reuters


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