How to Stabilize Oil Production

Russia and Saudi Arabia joined Qatar and Venezuela over the weekend in discussions on how to cap crude output and stabilize oil process. Brent prices began to stabilize around $33 per barrel. The output proposal “would freeze production at January levels.” The January level is the highest in years, but would give investors an assurance against further production increases in coming months, which lends stability to the market. Critics say this would not be nearly enough to stop prices from continuing to drop in the short term.