Oil macro analysis, page-788

The Wall Street Journal

OPEC, Russia to cut oil production even more, but for how long?

Output cuts have helped drive up crude prices this year

OPEC and a group of 10 oil-producing nations led by Russia are deepening their crude production cuts, but remain split on whether the curbs should remain in place through the end of the year, officials said Sunday.

Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries, met with Russia and a few others here to review how the 24-nation coalition is complying with a December agreement to withhold 1.2 million barrels a day from global markets.

The broad coalition implemented cuts in February that achieved about 90% of the amount it agreed to, Saudi Energy Minister Khalid al-Falih said at a press conference following the group’s technical meeting.

In March the cuts will be “above 100% easily,” he said, meaning the coalition will hold back slightly more than the 1.2 million daily barrels.

The output cuts were meant to shore up oil prices in the midst of a global glut of crude. The effort has led to a more than 25% rise in price of Brent oil the global benchmark since the year began.

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