Russia and Saudi Arabia make an agreement on oil production cuts unlikely

Russia expressed a willingness to talk with OPEC countries about possible production cuts at a meeting next week. We believe the chances of this yielding any concrete results are very slight. 

Positions, especially between Russia and Saudi Arabia, have been entrenched ever since Russia's military intervention in the Syrian conflict, as Russia is also attacking rebels there who are supported by Saudi Arabia. 

For its part, Saudi Arabia is attempting to use price cuts to gain Russian market shares in Europe, traditionally its most important market. This also argues against any agreement to cut production being reached between the two major oil producers, notes Commerzbank.