Efforts by OPEC to formalize a partnership with Russia and gain more sway over crude oil prices could be found as Congress advances at the oil group.
On Thursday, the House Judiciary Committee passed the No Oil Producing and Exporting Cartels (NOPEC) Act, paving the way for a vote in the full House.
The bill would change US antitrust regulations to allow the U.S. Attorney General to sue OPEC members for collusion.
While analysts don't expect the bill to become law, just the threat of the NOPEC bill could be one of the reasons 1
Russia is not joining a formal alliance with OPEC, he said, and the NOPEC Bill provides political cover for the Kremlin to avoid it
"Russia likes to maintain its independence and cooperate when it suits Russia's strategic and geopolitical aims," he told IBD. "I don't think we'll see Russia joining OPEC."
OPEC, Russia Crude Oil Prices
With OPEC facing diminished sway over oil markets amid booming US
Russia and other top non-OPEC producers have worked with the cartel since 2016 to lower crude production and boost crude oil prices.
Earlier this week, the Wall Street Journal reported that de facto OPEC leader Saudi Arabia and its allies in the group want a more formal deal with Russia.
But Russia has been hesitant about formalizing Saudi Arabia's call for more "institutionalized" partnership that would last beyond this year.
] "There is a consensus that there will be no such organization," Russian Oil Minister Alexander Novak said at the meeting of OPEC and non-OPEC members in December. "That because it requires additional bureaucratic brouhaha."
Crude Oil Prices Rise
Blocking a formal OPEC-Russia alliance could undermine their efforts to keep crude oil prices higher.
Economic slowdown fears amid signs of slowing growth and An escalating US-China trade was already putting downward pressure on prices.
On Friday, US crude oil prices set up 0.2% at $ 52.72 per barrel, and Brent crude oil prices were up 0.8% at $ 62.10.
EOG Resources (EOG) shares dipped 0.5% on the stock market today, ] Diamondback Energy (Catch) fell 1.4%, Continental Resources (CLR) slipped 0.8% and Anadarko Petroleum (APC) lost 1.8%.
YOU MIGHT ALSO LIKE:
Get The Latest News On The Energy Industry
IBD Stock of the Day
Looking For The Best Stocks To Buy And Watch? Start Here