OPEC will likely extend its deal with Russia to keep almost 2 million barrels of oil a day off the market, CNBC reports.
The Organization of Petroleum Exporting Countries is set to meet with a group of other nations led by Russia in Vienna on Thursday, where they will decide whether to extend the deal past the current expiration date in March of next year.
"OPEC has been left with little room for error," said Ole Hansen, head of commodity strategy at Saxo Bank in Denmark, according to CNBC.
Hansen added that OPEC may lose the support of many oil investors if the deal does not get extended, and that an agreement without the support of Russia, the largest oil producing nation not in OPEC, "would struggle to maintain the impact achieved so far."
RBC Capital Markets’ Global Head of Commodity Strategy, Helima Croft, told CNBC on Friday: "If Russia is not willing to sign up again to extend the cut, people fear that we're going to get something shorter than anticipated."
Russian Energy Minister Alexander Novak said last week: "The goal to re-balance the market hasn’t been met in full yet, so everyone is in favor of extensions to reach final goals. Russia also supports these proposals," according to Bloomberg Markets. "Different options are considered now, we will discuss details at the Nov. 30 meeting."
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