Russia Can Bargain with OPEC
Summary: Russian production is coming off of its six year of growth, with output reaching a new post-Soviet high in early 2015. More than a few market watchers are speculating as to whether Russian leaders are ready to bargain with OPEC. The short answer is yes, Russia could realistically promise to cap or even cut production. If so, however, they will merely make a virtue of a necessity. Production is about to fall precipitously anyway. When it comes to matters of substance, especially national sovereignty, Russia will make no concessions. ESPO Blend exports recently surpassed the symbolic threshold of 1 million b/d, and nothing will stop Russia from continuing to expand crude exports to Asia.