Russian Oil Magnate Meets with OPEC Before Official Meeting

Russia’s most powerful oil official, Igor Sechin, was due in Vienna on Tuesday for talks with OPEC members as the group’s leader Saudi Arabia kept the market guessing about its response to flagging oil prices.

Sechin, the head of state oil company Rosneft (ROSN.MM) and a close ally of Russian President Vladimir Putin, is expected to meet OPEC officials amid hints from Moscow that Russia could cut output or exports if the producer group does the same.

Oil prices have fallen 30 percent since June to around $80 per barrel as a global oil glut has built up on the back of a U.S. shale boom and lower global demand because of slower economic growth in China and Europe.

 
Current prices are far below what most OPEC members and rival producers such as Russia need to balance their budgets.

Oil market watchers are divided on the outcome of OPEC’s meeting this Thursday in the Austrian capital. Predictions range from a large production cut to revive prices, to a small reduction, or none at all.

Some analysts say an OPEC cut of as much as 1.5 million barrels per day (bpd) is needed to support oil prices and avoid a glut aggravating in the first half of 2015.

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza