Russia and other oil producers are joining OPEC member states in agreeing to cut oil output. Non-OPEC members will contribute an additional reduction of 600,000 bpd on top of the 1.2 million agreed to by the Organization of Petroleum Exporting Countries at its Vienna meeting. Bloomberg reports that this 25% reduction to global supply will be the first in 15 years. Moscow has announced itself willing to cut Russian output by 300,000 bpd from March onward, with Energy Minister Alexander Novak stating that he expects other countries like Azerbaijan, Kazakhstan, Oman, Mexico, Malaysia and Bolivia to also go along with the plan.
Algerian Minister, Noureddine Boutarfa, on his end has stated that he is convinced that "all countries present at the Vienna Summit intend on cutting output."
In the meantime, in spite of the Vienna agreement, Saudi Arabia has reported a new record oil output of 10.72 million bpd in November, compared to 10.625 million during the month of October.
Now analysts’ main concerns have to do with the USA’s next moves. With oil prices cautiously on the rise, fears are centered on the possibility that American shale gas producers resume producing competitively, which would effectively cancel out OPEC’s strategy.