OPEC and non-OPEC members seem to be all on the same page about an exit strategy for the global production cuts come June of 2018. The only issue that has risen is that OPEC/non-OPEC members believe that it should not be discussed until the data is analyzed in the market. Alexander Novak, Russia’s Energy Minister, chimed in by saying that they believe an exit strategy should be implemented but in a gradual manner. Reuters reported “Russia, which this year reduced production significantly with OPEC for the first time, has been pushing for a clear message on how to exit the production cuts so the market doesn’t flip into a deficit too soon, prices don’t rally too fast and rival U.S. shale firms don’t boost output further.” Based off of this quote, it is clear to see that U.S. production is still a very real concern for OPEC and its nonmembers. Russia has said that the exit strategy should take roughly three to six months to implement and that this should not be discussed until the market shows significant progress.
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