Impact of Russia-Saudi Arabia Agreement

Russia, Saudi Arabia, Venezuela and Qatar decided to freeze oil production at January 2016 levels in an historic agreement on Feb 16th. Prices have risen with hopes of a decline in production to balance supply and demand. Nigeria will join the group in a 2nd meeting on March 20 to discuss how to stabilize the crude oil market. Russia and Saudi Arabia continue to produce at their near -record January levels, and Iran continues to ramp up production. Without full cooperation between OPEC and non-OPEC producers the oil price is expected to continue to fluctuate.