Russia Takes Away the Last Hope of the Oil Market

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Oil market collapsed on Friday after a source said that Russia would not support the OPEC plan to further reduce output.

A senior Russian source told Reuters on Friday that Moscow would not support OPEC’s plan to further reduce production and would only agree to extend the current deal. OPEC on Thursday agreed to limit oil production by an additional 1.5 million barrels per day.

Price declined by more than 4% on Friday as demand fears intensified while there were no positive signals from the supply side. It’s possible that OPEC will decide to create another pact that won’t include Russia that will be aimed at reducing output among OPEC members and other oil producing nations.

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