06 February 2019, Sweetcrude, Lagos — The Organization of the Petroleum Exporting Countries, OPEC, is currently pursuing to sign a permanent agreement with its number one partner, Russia.
The move comes after the Organization and Russia had inked the Declaration of Corporation, DoC in 2016, which allowed them to cut back on crude oil exports to boost prices after its crash below $30 per barrel.
Russia’s pull is being engineered by Saudi Arabia and the United Arab Emirates, UAE.
The duo is also looking to lock down other none OPEC oil producing partners, according to Wall Street Journal, WSJ.
According to the report, OPEC wants to guard against another price crash as a result of oversupply in the market.
However, the proposal is facing opposition from Iran, which fears domination by Moscow and Riyadh.
Analysts also fear Russia may not be interested in signing a permanent pact, as the country is looking to signing trade deals with OPEC’s top rival, the United States.
The U.S has kept increasing production, including boosting its oil and gas rigs by 10 last month.
Analysts say OPEC plan to drag in Russia permanently may backfire, as the country now fears sanctions from the U.S, and would rather be an ally.