Bloomberg has reported sources in Riyadh, at the Vienna meeting, on 6 December Saudi Arabia intends to give the signal that no longer wants to rescue the oil market alone.
Oil prices collapsed at the evening auction on Friday on news that Saudi Arabia at the upcoming meeting of member countries of OPEC transaction+ intends to make claims against partners who do not fulfill their part of the agreement.
Futures on the Brent oil dived 4% in four hours from 63 dollars a barrel to the lowest in a week and a half mark of 60.35.
The collapse of the new York stock exchange NYMEX was even bigger: contracts for WTI at the moment fell 5.2%, ending trading at around 52,42 USD per barrel, with a reduction in price by 4.6% on Thursday.
Bloomberg has reported sources in Riyadh, at the Vienna meeting, on 6 December Saudi Arabia intends to give the signal that no longer wants to rescue the oil market alone, compensating for the failure of quotas to reduce production in other OPEC countries+.
In October, the Kingdom produced 9.9 million barrels a day in November, according to Reuters, has reduced production to 9.85 million barrels a day, with a quota of 10.02 million barrels.
From the beginning Saudi Arabia has been ahead of the deal to 140-160% each month, while Russia – the second actor only twice met the commitments, and that in the months when from-for scandal with chlorine idled the pipeline “Druzhba”, providing 20% of Russian oil exports.
At the end of August Russia completed the deal to 53% in September to 88% in Oct – 73%, shaking at 11.23 million barrels per day, with a quota of 11.17 million
At the upcoming meeting in Vienna, the Russian delegation wants to legalize this practice and to adjust the quota, excluding gasocondensate, told TASS a source familiar with Moscow’s position.
“It seems that the Alliance of Russia and Saudi Arabia began to crack at the seams,” – said partner Fund Again Capital John Kilduff.
“This undermines the General belief that the transaction is OPEC+ will be extended,” he adds.