Here's Why Investors Are Skeptical About the Saudi Arabia-Russia Oil Pact
Saudi Arabia and Russia agreed to join forces in an effort to bring stability to global oil markets, but investors are skeptical the development will lead to a production freeze.
At the G20 Summit in China, Saudi Arabia and Russia agreed to join forces in an effort to bring stability to global oil markets, but investors are skeptical the development will lead to a production freeze. 'We saw excitement [in the markets] that this might be a concrete prelude to a production freeze to be announced [at the OPEC meeting later this month],' said Michael Ingram, a market analyst with BGC Partners, adding that once investors realized there were no details about the agreement, oil prices gave back their gains. 'The market is right to be skeptical; OPEC in August pumped a record amount of crude - 33.7 million barrels per day.' TheStreet's Scott Gamm reports from Wall Street.
