On Thursday and Friday, OPEC+ representatives meet in Vienna
OPEC member countries, Russia and some smaller oil exporters will discuss oil production reduction, which would increase the black gold value.
During Monday trading, oil price grew in more than 4% and brent oil was traded in almost $52 per barrel. Consumers hope that OPEC will follow recommendations proposed by its technical committee to reduce oil production to at least 500,000 barrels a day. Moreover, we may expect major central banks to take measures against slowing economy.
Yet, Russia’s attitude must be considered, while its daily production is significantly higher that Saudi Arabia’s, which represents the largest OPEC member. On Sunday, Putin talked to representatives of major Russian oil companies to agree on further steps of negotiations. So far, the Kremlin published no official decision.
As Russia is dependent on oil revenues, the country will probably not agree on oil production reduction. The reduction would not lead to rapid price increase, while weakening demand on global economy would still be prevailing effect. On Friday, we should have more information.