The Organization of the Petroleum Exporting Countries (OPEC) and Russia agree to cooperate in the next ten to 20 years to limit oil production. The guarantee is left by the crown Prince of Saudi Arabia in an interview with Reuters. These statements are animating the prices of oil traded in London, with Brent negotiating over $70.
"We are working to change from a year-to-year deal to a ten to 20 year deal," said Saudi Arabia's crown prince to Reuters. "We have a global agreement, but not yet on the details" of the cut in production, refers Mohammed bin Salman.
Just last week, the oil minister of Saudi Arabia said that OPEC members must continue to coordinate with Russia and other producers, considering extending the raw material production reduction agreement to 2019.
Saudi Arabia has allied itself with Russia and other producers to reduce the oil supply this year. This after the excess of the raw material in the market has taken the quotations of "black gold" to fall sharply to values around 20 to 30 dollars.
Since the agreement was implemented, and in a context of growth in the world economy (which is reflected in an increase in demand), raw material prices have been recovering. With the announcement of a long-term production cut, Brent, who was already over 70 dollars, accentuated the trend. The reference oil for Europe is earning 0.3% for 70.33 dollars. In New York, the WTI is over 65 dollars. Source: Online Economics.