OPEC summit outcome depends on Russia, Azerbaijan and Mexico

Baku. 24 November. REPORT.AZ/ Russia has repeatedly stated that it prefers to freeze and not to reduce the volume of production. 

Report informs citing the Forexpf.ru, despite the fact that, there is only one week left to the meeting in Vienna, Moscow does not intend to change its decision. Saudi Arabia and other OPEC countries hoped that Moscow would change its mind at last moment and reduce the production, together with the cartel. Moreover, some OPEC countries insist that the plan to stabilize the market and reduce the global oversupply will only work with the participation of Russia in the agreement on equal terms with everyone else.

This contradiction must be solved at preliminary meeting between OPEC and other producing countries on November 28. The outcome of this event will determine the fate of the agreement. According to data obtained by Bloomberg from unofficial sources, Russia, Azerbaijan and Mexico will participate in negotiations. Oman, Kazakhstan and Brazil will not take part at this time.

"The negotiations will go to the bitter end, and, most likely, the deal will be announced at the last moment", said Amrita Sen, a senior analyst at Energy Aspects in oil consulting company.

Experts of Analytical Group of Report doubt about the positive outcome of the summit on November 30: "We expect the decline in oil prices to 40 USD/barrel by the end of the year, and in 2017 they are likely to fluctuate in the range of 35-45 USD/barrel. Excess of oil price to the level of 50 USD per barrel would lead to an increase in shale oil production in the US, as a result of which other countries may lose their market share."