Russian energy minister isn’t suppressing his disappointment and frustration after last weekend’s meeting between OPEC and non-OPEC producers break down without any agreement over oil freeze. Alexander Novak, said this week, his hopes were down heading into Doha last weekend and he was doubtful, whether a deal could be reached.
Since then, some OPEC members have expressed hope that a deal could be re-visited, before OPEC’s official meeting in June. However Mr. Novak after seeing OPEC politics last weekend doubts whether OPEC members can reach a deal among themselves.
He might have also been pointing that this time they will have to reach a deal by themselves, without Russia. However, he cited higher oil price to be the reason. Due to lower oil price in February, there was urgency for a deal, which became lesser last week as oil price already recovered.
Russia also raised its production forecast for 2016 to 10.92 million barrels/day, slightly higher than January level of 10.91 million barrels per day and 10.78 million barrels/day, previous forecast.
WTI is currently trading at $43.3/barrel and Brent at $1.2/barrel premium. Since the deal break down Brent spread over WTI got lessened by $2.3/barrel.
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