Saudi Arabia, Opec, Alexander Novak discussed on


Plunge the most in eleven months on friday saudi arabia said it expects opec and its partners to boost it supplies later this year easing restraints intact since early twenty seventeen meanwhile russian energy minister alexander novak said that the nation's they only want what he called thoroughly prices he spoke to bloomberg at the petersburg international economic forum nobody in the opec law school or his interested in seeing an overheated market there are many factors affecting that now and pushing world prices up including deficit from unexpected production declines from geopolitical factors let's bring in charles henry moore show he's managing director at mount capital great to have you with us this morning so the biggest drop in oil in a number of years i just wonder is this a big uturn by the side as is the biggest plunge in eleven months had big and significant is this move the hint that they might return on the tops i think we need to within two context this year is wicked core for oil traders before entering into this year to kind of journalism shin was that it was going to stay low for longer i know we have to adjust your eighties that u s share production cannot meet the rising demand for oil which is not one point seven million barrels a day used to be a half of that to this sort of the decay so since thing that needs to be up on the supply side the show term solution is probably what we heard about you know rising output from from russia and opec in the mediumterm we also need to see some adjustments on the wrong ahead of the curve a disabled back where they show on the curve we cannot cannot incentivize no rising production on the site so this is maybe the second step the first step is these adjustments and obviously because there was a lot of speculative lung positional oil the move has been very brutal positions we saw money managers are really getting behind the longer oil in the last week according to the latest cftc data the question surrounds what happens next because we're leading up to what is likely to be pretty contentious opec meeting it's mostly saudi arabia and russia that are calling for these changes but doesn't mean everybody else gonna get behind it that easily the hit the game plan looks to to be in the.

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