Tuesday 14 November 2017

Breakup of Saudi-Russian ‘Bromance’ Would Collapse Crude Prices - Bloomberg

Breakup of Saudi-Russian ‘Bromance’ Would Collapse Crude Prices - Bloomberg:

"The Saudi- and Russia-led supply limits that have lifted crude to a 2 1/2-year high must be prolonged for an extended period or prices will collapse, said Ed Morse, global head of commodities research at Citigroup Inc. Investors already are assuming OPEC and its allied producers will agree at the end of this month to extend the limits well beyond their March expiration, Morse said at a gathering of energy economists in Houston on Monday. Morse characterized the historic 2016 rapprochement between Saudi Arabia and Russia that helped lead to the output limits as a “bromance,” and said anything short of a decisive step moving forward will disappoint traders and trigger a massive unwinding of long positions in the futures market."



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