It's getting hard to make a deal stick in the oil game right now
Not only are oil producing countries not getting the deals they want via meetings and production cuts, firms are also finding that deals are going up in smoke.
Reuters report sources saying that China's Fortune Group is pulling the plug on a $680m export tender deal it struck with Russia's Rosneft for fuel oil.
In October the group had won with a bid nearly double the other tender bids but has been slapped round the face with further falling prices and a slowdown in Chinese demand. They were due to take the first cargo last month.
Neither company has commented on the story but the 3.5m ton deal accounted for around 10% of the total Rosneft tenders issued in November for delivery this year.
I suspect this isn't the first nor last type of story like this we'll hear of. We can probably assume that there's a fair amount of drain circling going on in the oil industry right now
More from Reuters here
