Russia labeled the King of OPEC ahead of next week’s meeting
While OPEC’s gatherings still influence prices, it’s not Saudi Arabia’s voice that matters most, but the voice of a non-member: Russia, specifically Vladimir Putin. Bloomberg’s Julian Lee speaks on “Bloomberg Daybreak: Americas.”
“Next week’s OPEC meeting will feel the influence of Russia and underscores why Saudi has always been keen to oppose Russia joining OPEC,” said Lee.
“Two big beasts in the same room could be pretty uncomfortable.”
He said Saudi wants to roll over the current deal and extend production cuts until end 2018 and added that the Russians are more hesitant despite the fact that they see the need to extend the deal as well.
“The Russians are wary about making that decision too soon, because there is still a long way to the March 2018 deadline and their instincts is to wait and that is where the tension is,” said Lee.
“In Saudi, it ‘s easy with one oil company (Aramco) under government control, whereas in Russia, there are several private oil companies who are profit driven.”