Two oil-exporting nations could decide the future of a historic deal to drain a worldwide glut of crude oil, according to Helima Croft, global head of commodity strategy at RBC Capital Markets.
Oil producers are meeting in Abu Dhabi on Monday and Tuesday to figure out how to improve compliance with a deal struck by OPEC and other exporters to keep 1.8 million barrels a day off the market. Analysts say top producers Saudi Arabia and Russia have limited options to convince producers to pump less.
The compact has been undermined by surging supply from U.S. drillers, as well as OPEC members Libya and Nigeria, which were exempt.
While Nigeria recently agreed to cap its output in the future, Libya has not yet made any commitments.
Meanwhile, Venezuela's production has slumped about 13 percent this year as its economic and political crisis worsens. International oil companies have begun pulling their workers out of Venezuela, Croft noted.
Source: Bloomberg Pro Terminal
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