Withdrawal From OPEC Deal Could Take 6 Months To Negotiate

8 Dec 2017   OPEC

Withdrawing from the OPEC-NOPEC agreement to cut 1.8 million barrels per day of output could take up to six months to fully negotiate, according to top Russian energy official Alexander Novak. “This is a process to be discussed. It can take three months or half-year. A specific moment of time to be considered, depending on the future demand,” the minister said. Novak said discussing a premature withdrawal did not reflect any desire within the Russian leadership to abandon the deal, which, over its lifetime in 2017, has allowed the Brent barrel price to recover to $60+. Last week, OPEC and its non-OPEC partners agreed to extend the deal through the end of 2018, but the team included a review clause that would take place in June. It is unclear whether countries will have the ability to leave the pact at that point. Libya and Nigeria will face a combined […]

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