OPEC-Russia oil restriction alliance to continue into 2019

OPEC and Russia have made a renewed commitment to restrict crude oil supplies this year and agreed on a new pledge to continue collaborating into 2019.

The news followed a meeting between the leading international oil cartel and the world’s largest oil producer in Oman, which concluded in both parties revealing there was an ‘unwavering resolve’ to limit oil production.

Non-OPEC member Russia was expected by many industry analysts to distance itself from last year’s landmark agreement in order to take advantage of rising oil prices, which are floating around the US$70 per barrel mark.

However, both factions will continue to hold close ties into 2019 after Russian energy minister Alexander Novak said the recent surge in oil prices is likely to be temporary. He also vowed to stand alongside Saudi Arabia in maintaining quotas until the market regains greater balance this year.

Speaking in Oman, Saudi Arabia’s Khalid al-Falih said: “When we started this journey more than a year ago, we faced severe challenges in transforming market sentiment from deeply negative to positive, and restoring confidence in our ability to bring stability to the market.

“At the time, concerns were expressed that similar frameworks had unravelled in the past.”

Instead, all signatories of the historic agreement have complied with the output targets, which have helped to cut excess oil supplies from 340 million barrels to less than 120 million barrels.

“We as major producers have held together despite numerous challenges,” added Al Falih.