Western banks evaluated agreement between Russia and the OPEC countries – RBC

Photo: REUTERS 2016

Russia and the OPEC countries agreed on Tuesday to freeze level of oil production. Reuters has collected comments on the prospects of Western banks influence the agreements reached on the oil market

The Goldman Sachs suggests that the agreement between Russia and OPEC countries will not have a significant impact on the oil market. “Details of the agreement suggest that this freeze will not have much impact on the oil market, is still uncertainty, which may materialize,” – leads the agency Comment Bank

Deutsche Bank also believes that the agreement will have little influence. To the market. “Not only that, the talk shifted from production cuts only to freezing, the proposal still comes from oil producers, which in any case is not going to increase production volumes (Russia, Venezuela, Saudi Arabia and Qatar),” – leads the agency of their application <. / p>

Barclays Bank believes that even if the agreement will be successful, the rise in oil prices, to which it can cause, will be limited. “OPEC is still faced with the dilemma between higher oil prices and market share, to achieve both goals, it is unable to” -. Said at Barclays comments

According to analysts of the bank, any positive effect on the oil prices also depends on other major oil producers. “Even though the announced agreement is the first concrete step to limit the production and publicly supported the Saudi Arabia, ahead there is a lot of difficult negotiations, that the agreement was realized”, – noted in comments

Analysts at Commerzbank note that the success of the agreement will depend. on whether it will support Iran and Iraq. “Now that the sanctions lifted, Iran is unlikely to be ready to leave oil production at 2.9 million barrels per day, considering that the main priority is to return the Tehran market share that it lost”, – quotes Reuters the bank’s comment

The Citi Futures stress that freezing does not mean reducing production. “This is more a political statement than on oil prices stabilizing action”, – said in a commentary. The company also believes that Iran has no choice but to reject this agreement.

«We expect Iran to abandon restrictions on the extraction of its oil, which will give other exporters an excuse for ignoring the agreement and Saudi Arabia would argue that low price [of oil] is Iran’s fault, refused to endorse the agreement “, -. the commentary said Citi Futures

on February 16 after talks in Qatar, representatives of Russia, Qatar, Venezuela and Saudi Arabia have decided to freeze the oil production at the level of January 11 on the condition that other manufacturers will join this initiative.