Comments from Russian energy minister Alexander Novak
- Committed to seeing its pact with OPEC through to completion
- Whether that means starting discussions of a phase-out at next meeting
- Or possibly prolonging cuts into 2019
- As soon as balancing of market is achieved, then will start considering gradual withdrawal
- Balancing of market may happen in Q3 or Q4
- Discussions of exit strategy in OPEC’s June meeting can’t be ruled out
- Isn’t worried about growth in shale oil
Some positive comments by Novak. He spoke to Bloomberg TV a couple of hours ago, so this isn’t exactly breaking news or anything.
But it goes to reaffirm the market that at least for the time being, non-OPEC and OPEC members look to be agreeing that they will go through with production cuts despite the threat of growing US shale oil in the background.
The latter has come back into focus and is weighing on oil prices despite the positive takeaway from Novak’s comments above. WTI is down by 0.58% on the day, while Brent is down by 0.60% today.
The drop so far today puts in question whether or not are we seeing a real break of the recent wedge formed in WTI: