Yesterday in Vienna, at the OPEC + 11 summit, an agreement was reached to extend the Oil Cut Deal terms by the end of 2018. This pact is designed to restore oil prices at the level of 2013, when a barrel was worth a lot more than $ 100.

Some summit participants have noted the fact that they are considering the possibility of refusing to participate in this agreement in the event that the market situation proves to be unprofitable for the economy of their states. In the opinion of Russian representatives, one should not create a situation in which rising prices will have a stimulating effect on the US shale oil producers, which at any moment can bring down the world market of "black gold".

In addition, Russia is more interested in prices falling below $ 50 per barrel, which, however, contradicts the interests of Saudi Arabia.
As a result of the summit, it has been announced that OPEC still came to a common opinion regarding the production in Libya and Nigeria and to limit the joint quota of the two countries to 2.8 million barrels per day.

It should be emphasized that the share of the OPEC cartel and Russia is more than 40% in the world oil market. However, it is the Russian Federation that has been playing the main role in this agreement in recent times.

The situation may change if the USA keeps its promise and overtakes Russia in terms of raw materials production. The American companies are active in both the oil market and liquefied gas, increasing their share on all continents. In the first month of autumn, US production has increased by 3% to the mark of 9.48 million barrels per day.

In the event that companies from the United States, producing shale oil, begin to increase the number of drilling rigs, all efforts by OPEC and Russia to control world prices will be completely in vain. At the moment, the North Sea Brent benchmark Crude Oil barrel has been appreciated to the level of $ 63 (+ 0.5%).

Brent Crude (ICE)

WTI Crude Oil (Nymex)

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