Russia seeks to postpone OPEC decision on oil output curb

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Russia seeks to postpone OPEC decision on oil output curb

Ahead of a December 5th meet of OPEC (Organization of Petroleum Exporting Countries) members alongside their Russia-led allies in Vienna, Russia, the third-largest crude oil producer across the globe behind the United States and Saudi Arabia, had been urging for more patience on whether to extend crude oil production amid intense pressure from its state-backed oil giants alongside others, pointing towards a dark shadow over crude oil futures’ prices amid a robust US inventory build.

In point of fact, Russian Energy Minister, Alexander Nowak said on Friday, the 29th of November 2019, that, the it was too early to comment on negotiations regarding the issue, a Russ Agency Tass report published late on Friday (November 29th) had revealed, nonetheless, the current accord to curb crude output by 1.2 million barrels per day would continue until March 31st.

However, ahead of an Aramco IPO final pricing on December 5th, same day the OPEC members and their Russia-led allies would meet to decide on whether to extend output curb until June 30th, the Russ push would likely to get rejected, suggested industry analysts.

More importantly, it had been three years OPEC members were curbing oil output to balance crude oil market and keep the oil futures’ prices higher, while an Aramco IPO due to be held this month and architected by the OPEC-kingpin Saudi’s crown prince Mohammed bin Salman seeking a valuation between $1.6 to $1.7 trillion, would likely to result in a strident rejection of Kremlin’s push.