Russia Forming Joint Organization With OPEC Highly Unlikely Given US Sanctions Risk

It is highly unlikely that OPEC and other oil producers would set up a joint structure due to the additional red tape it would create as well as the risk of U.S. monopoly-related sanctions, Russian Energy Minister Alexander Novak said Dec. 27.

OPEC and other top oil producers led by Russia have since the end of 2016 made an unprecedented joint effort to curb output and support prices.

OPEC and Russia jointly produce more than 40% of the world’s oil.