Russia likely to argue for modest cutback

Talks with Russia today are expected to determine the scale of production cuts, but the nation “will not be keen” to scale back too much, according to an analyst.

Russia is among the largest producing countries in the world, with oil a key source of revenue.

Last weekend President Vladimir Putin met with Saudi Crown Prince Mohammed bin Salman, laying the groundwork for a Russian cut in production.

However Fiona Cincotta, senior market analyst at City Index, said: “While in theory Opec members will aim for a significant cut, the US has been calling for lower oil prices, with President Trump specifically addressing his comments at Saudi Arabia.

“Similarly, Russia will not be keen to scale back too much as oil is a key source of its revenue, particularly at a time when it still faces partial US sanctions.

“Russia and the US have both increased their production over the last year, Russia to a postSoviet high of around 11.4 million barrels a day and the US to 11.47m with the capacity to go beyond 12m next year.

“This means the US could build on its lead position as the world’s largest oil producer ahead of Russia and Saudi Arabia, giving the two countries less of a reason to scale back.”