OPEC, Russia to Stand Pat on Oil Deal Even as Glut Persists

OPEC, Russia to Stand Pat on Oil Deal Even as Glut Persists
OPEC and Russia's plan to clear the global oil glut hasn't worked as they hoped, but there's little expectation the world's largest producers will act more aggressively when they meet this weekend.

“Every few dollars that the price does begin to rise, it incentivizes more oil from the U.S.,” Neil Atkinson, head of the IEA’s oil markets and industry division, said in a Bloomberg television interview.

Yet the threat posed by shale is what will hold the flawed deal together, according to Paolo Scaroni, vice-chairman of NM Rothschild & Sons and former chief executive officer of Italian oil giant Eni SpA.

“This is the game changer for everybody,” Scaroni said. “The situation is so difficult for them that I’m convinced any agreement in OPEC has more chances than before. They have no alternative.”

To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net. To contact the editors responsible for this story: James Herron at jherron9@bloomberg.net Jim Efstathiou Jr.


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