According to reports both the Organization of the Petroleum Exporting Countries (OPEC) and Russian administration announced on Sunday that they were making encouraging progress on their pledges to cut back crude-oil production and increase global prices.
Meanwhile Saudi Arabia energy minister Khalid al-Falih revealed that OPEC’s 13 nations and 11 producers outside the alliance had made joint cuts adding 1.5 million barrels a day since treaties were struck in late November and early December. Oil prices have surged close to about 20% since those deals were completed, despite common disbelief over whether OPEC and other producers would stay on the deal.
Furthermore Khalid al-Falih, Saudi Arabia’s oil minister, said during a speech on Tuesday at the World Economic Forum in Davos, Switzerland that U.S. oil shale producers “will find they need higher prices” because the most fruitful reservoirs are being exhausted and squeezed contractors are rising the amount they charge.
Moreover Khalid al-Falih also talked about a new energy policy statement from the Trump administration, which said the U.S. would seek freedom from OPEC but maintain close relationships with its Persian Gulf partners to fight terrorism. “We in Saudi Arabia look forward to work closely, cooperatively, constructively with the incoming Trump administration, especially in the area of energy,” the minister said.
Sunday numbers were the earliest and the executives didn’t offer other fine points, such as the current collective output of OPEC or whether Saudi Arabia was bearing a larger consignment of cuts to make up for other members that aren’t involved positively.