- OPEC agreement fails to meet market expectations
The agreement on the oil production cut between the Organization of the Petroleum Exporting Countries (OPEC) and major non-OPEC countries at OPEC’s meeting on Thursday, May 25 was extended by another nine months.
However, markets viewed the agreement as disappointing with an expectation of a lengthier 12-month extension. Additionally, production cut levels remained the same and oil prices lost over 5 percent of their value after the agreement was announced.
As one of the biggest contributors to the agreement as a non-OPEC oil producer, Russia’s Energy Minister Alexander Novak said that market reactions would have been “far worse” if an agreement had not been reached.
The minister underlined that the new agreement is long-term and crucial for balancing global oil markets and he also signaled that Russia was ready to extend the agreed amount to be cut.
According to the initial agreement, which was reached last year in November, Russia pledged to cut their oil production by 300,000 barrels per day.
-Economic sanctions to be lifted
Russian-imposed economic sanctions against Turkey after the jet crisis are set to end this week.
As announced by both countries’ officials, the removal of sanctions that cover all limitations, except the visa regime for Turkish citizens and tomato imports, is expected.
The leaders of the two countries discussed the sanctions lift on Saturday.
Russia currently bans the import of a number of Turkish agricultural products such as cucumbers, strawberries and pears. The country also restricts companies in Russia employing Turkish citizens and for Turkish companies to participate in tenders.