Translated material
CNBC: Putin may refuse OPEC to limit oil production
reports on Tuesday, November 28 Russian President Vladimir Putin may refuse to extend the agreement to reduce oil production at a meeting with OPEC countries, CNBC .
Analyst Helima Croft from RBC Capital Market announced this possibility to the TV channel. OPEC oil ministers will meet in Vienna on November 30 to agree on an extension of the curb on production until March 2018. They will be joined by Russia, which is not a member of OPEC. According to Croft, Russian oil companies are putting pressure on Putin, who are unhappy with the extension of the agreement until March, as it does not benefit them. Domestic oilmen believe that all tasks have been completed and further reductions will only give odds to American producers.
However, the Russian Federation and the OPEC countries have different budgetary needs, which Putin must take into account. While Russia bases its 2018 budget on an oil price of $40 a barrel, OPEC leader Saudi Arabia needs $70 a barrel for a balanced budget. Also, Croft notes, the withdrawal of the Russian Federation from the agreement will lead to a decrease in oil prices on the eve of the presidential election, which will be unpleasant for Putin.
In June 2014, the price of oil dropped sharply. Among the reasons was, among other things, the reluctance of OPEC to cut production. The oil cartel reached the current deal in November 2016.
Read the best texts of The New Times and breaking news Telegram in
Russiagate: who and why got into the network of prosecutor Mueller