Non-OPEC countries have announced they’re limiting their oil production, following suit with the 1.2 million barrel cuts that OPEC countries announced two weeks ago.
Eleven non-OPEC countries have agreed to curb production by 558,000 barrels, and oil prices continue to rise on the good news. Along with the non-OPEC cut, Saudi Arabia’s energy minister agreed to substantially cut more than the 486,000 Bpd previously announced.
This will be the first pact in 15 years between the two groups—together they produce roughly 60 percent of the world’s crude—that have always been considered rivals. Both Saudi and Russian energy ministers said this deal has been a year in the making.
And to all the petroleum market naysayers, here are the words straight from Saudi Energy Minister Al-Falih’s mouth: “I can tell you with absolute certainty that effective Jan. 1 we’re going to cut and cut substantially, to be below the level that we have committed to on Nov. 30th.”
They’re looking for a price of $60.00 per barrel in the second quarter of 2017, and if this keeps up, it looks like they’re going to get it.