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OPEC Deal Hinged on 2 a.m. Phone Call and It Nearly Failed

  • Saudi call with Russia led to first supply cut since 2008
  • Deal finally gets struck after Indonesia is sidelined
Bloomberg business news

The Impact From Overcapacity on OPEC’s New Deal

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After months of meetings from Doha to Moscow, it was a 2 a.m. phone call between two of the most powerful men in the global oil industry that finally broke the impasse.

On the eve of the Nov. 30 meeting of the Organization of Petroleum Exporting Countries, the odds of finishing a deal to reduce supply and ease a global oil glut didn’t look good. Members remained deadlocked over how much each should reduce. They had been forced to cancel talks aimed at getting other suppliers like Russia and Brazil to play a part.