Oil rally halted on production fears - Investec

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Delhi) – Research Team at Investec, notes that yesterday the Russian Energy Minister Novak said that Saudi Arabia had proposed a cut to oil production by 5% in each member country, but the cut in Russian output was “a different matter if it ever comes to it”.

    Key Quotes

    “However, OPEC delegates have said that they have no meeting planned with Russia, and Saudi Arabia had not made such a proposal. A Senior OPEC Gulf delegate said "Gulf OPEC countries and Saudi Arabia are willing to cooperate for any action to stabilise the international oil market.” It is worth noting that political relations between Saudi Arabia and Russia are poor and not helped by Russia’s support of Iran. But as the old saying goes, 'there's no smoke without fire' - and it seems oil exporters are feeling the heat.”
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