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“Earlier reports have reinforced the doubt about Russia’s stance on the extension, but it seems most observers agree that there will be an extension—just maybe not one that is nine months long,” reports OilPrice.com. “Russian oil producers, according to these reports, are against a long extension because stronger oil prices will strengthen U.S. shale production, and that’s not something either OPEC or Russia would like to see happening.”
While OPEC member states have moved to cut production, expectations of continued U.S. shale production remain a deterring factor. Nevertheless, recent U.S. inventory drawdowns, which if sustained, could support the current price levels.
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