Russian Oil May Gain a Lot by Giving a Little on OPEC U-Turn - Bloomberg:
Russia’s oil industry is feeling the pressure of a possible return of production caps. In fact, by sacrificing a fraction of output, the companies could see their stocks rise.
Fresh output curbs may push crude prices up, benefiting Russian producers just as they did during the cuts that began last year. The Moscow Oil & Gas Index has gained about 40 percent since the initial output pact between OPEC and Russia was reached almost two years ago.
The Organization of Petroleum Exporting Countries has signaled it will consider a return to cutting supply next year as oil prices wilt in the face of another surge in U.S. shale production. A new deal would come just as Russia’s production climbs to a post-Soviet high -- following its June agreement with OPEC to ease supply caps -- and its oil companies generate record cash.
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