Wednesday 16 May 2018

Russia's OPEC Deal Dilemma Worsens as Idled Crude Capacity Grows - Bloomberg

Russia's OPEC Deal Dilemma Worsens as Idled Crude Capacity Grows - Bloomberg:

"Russia will face a tough choice in talks with OPEC next month as an increasing number of its valuable oil wells lie idle.

Almost 4 percent of Russian production capacity isn’t being used, Citigroup Inc. said in a report on Wednesday. That raises questions about how the country will approach its June summit with OPEC amid growing signals of a tighter market, including shrinking global inventories and possible supply losses from Iran.

“The Kremlin faces the dilemma of either continuing to extend” output cuts or allowing companies to boost production, Citi analysts said. “Either way, Moscow is flexing its muscles globally with oil as an instrument of strategic policy.”"



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