Oil Price Fundamental Daily Forecast – Russia’s Decision on Production Cuts Will Be Market Moving Event

Production Cut Update

Mohamed Arkab, who currently holds the prudency of the Organization of the Petroleum Exporting Countries (OPEC), also said that the OPEC+ Joint Technical Committee, known as the JTC, has recommended that “an additional reduction in production be made until the end of the second quarter of 2020”.

WTI and Brent crude oil are going to have a hard time rallying as long as Russia stands in the way of the production cut increases.

Russian Foreign Minister Sergei Lavrov said on Thursday that Moscow supported cooperation with other producers, in remarks which appeared to boost prices initially.

However, Energy Minister Alexander Novak said on Friday Russia needed a few days to analyze the oil market and would clarify its position on deeper cuts next week. This capped gains and drove prices lower, in a move that has extended into Monday’s rally.

“Growth is slowing down in the United States. It was 1.

3 million bpd last year…This year, we expect less than 1 million,” he said. “Oil production growth is slowing down there due to lower prices.

”

This article was originally posted on FX Empire

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