Oil is under pressure in the lead up to Friday’s much anticipated OPEC meeting. Oil extends declines before the gathering where Saudi Arabia and Russia are expected to propose the group and its allies ease production curbs.
The chumminess of Russia and Saudi Arabia, however, is not unexpected. The relationship between two of world’s largest oil producers is being reinforced as OPEC is poised to grapple with several thorny issues. Chief among them is how to deal with the declines of supply from OPEC member Venezuela, and the effect of renewed sanctions on Iran by the United States. Iran is being sanctioned by the U.S. after President Donald Trump withdrew from a deal between Iran and six other countries designed to end its nuclear program.
Chart: Used with permission of Bloomberg Finance L.P.
Trader Georgi Bozhidarov