US checks for possible leakage of OPEC + negotiations

US, WASHINGTON (ORDO NEWS) — Commodity Futures Trading Commission USA (CFTC) is investigating whether traders could get insider information on countries negotiating OPEC + in March, reports Bloomberg , citing two sources familiar with the situation.

According to sources, the CFTC is conducting an investigation to find out whether “aspects of the Russian government’s strategy leaked to the traders ahead of time in negotiations with other OPEC + members.”

According to sources, the CFTC is checking to see if “traders with insider information about Russia‘s negotiations with other OPEC + countries could make millions of dollars from illegal rates on oil price fluctuations.”

As the sources emphasized, “the identities of traders cannot be established, but they are not Russian officials.” At the same time, one of the sources stated that “people who place bets attract people associated with the Kremlin.”

At a meeting in March on market support measures, OPEC + countries were not able to overcome differences on the future of the deal. Then a consensus was not reached either at the suggestion of Russia to simply extend the agreement in order to further take a more balanced decision, or on the idea of Saudi Arabia to deepen the reduction in production by 1.5 million barrels per day. The meeting ended with the collapse of the deal and the acceleration of the fall in oil prices.

OPEC + agreed on April 12 to reduce oil production by 9.7 million barrels per day in May-June, 7.7 million in the second half of the year and 5.8 million further until the end of April 2022.

The base of reference was taken in October 2018, but for the Russian Federation and Saudi Arabia, 11 million barrels per day were taken, from which, by analogy with all, there is a decrease of 23%, 18% and 14%, respectively. Mexico insisted on separate conditions : it reduces production by only 100 thousand barrels per day in May-June, the remaining 300 thousand for it is reduced by the United States.


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