Russia’s aversion to Opec output cuts
Though the country has suffered from the downturn they will not agree to change their policy
Russia has probably suffered more than any other crude producer from the sharp fall in the oil price. So why, if the Saudis and other Opec members say any output cut from them would have to be done in concert with non-Opec producers, particularly Russia, is Moscow unlikely to agree to any such move now or even later in the year? “Even though it sounds sensible to do so, I do not see Russia participating in any output cuts with Opec,” says Chris Weafer, echoing the view of many analysts. A cut in oil production and attendant rise in the price would, on the face of it, be hugely beneficial for Russia. Its economy was hammered in the last quarter of 2014 as the oil price dropped from around $90
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