RIA and Interfax news agencies quoted Russian Energy Minister Alexander Novak as saying he will discuss the agreement and the state of the oil market at OPEC's Joint Ministerial Monitoring Committee meeting on Sept. 12. Fox Business contributor and senior market analyst at Price Futures Group, Phil Flynn said Russia “over-complied” in July.
As a result of this move, the prices of U.S. oil futures dropped 6 percent, according to MarketWatch. Also looming over the oil market: Hurricane Dorian.
The unpredictable path Dorian has been taking as it approached the United States has put some refineries along the coast of the Gulf of Mexico on high alert. Chevron's plant in Pascagoula, which produces more than 356,000 barrels a day, is "following hurricane procedures and paying close attention to the track and forecast of the storm,” Chevron spokesman Braden Reddall said in an email to Reuters.
In Louisiana, which has 17 operating refineries according to the U.S Energy Information Administration, no preparations were being made as of Friday.
As for OPEC, the group is facing a weaker demand outlook due to slowing global growth. In July, OPEC ministers agreed to a nine-month extension of its previous deal to cut production. That deal reduced production by 1.2 million barrels per day starting Jan. 1. After July’s meeting, the deal was extended through March 2020.
FOX Business’ Ken Martin and The Associated Press contributed to this report.