Saudi Arabia and Russia agree to freeze oil production

16 February 2016

Output will be maintained at January levels 

Saudi Arabia and Russia have agreed to freeze oil production at January levels after a meeting between oil ministers in Doha.

Saudi Oil Minister Ali al-Naimi said maintaining output would be “adequate” and the kingdom still wants to meet demand from its customers.

Russia and Saudi Arabia are the world’s two largest producers of crude and the collapse in global oil prices from mid-2014 has significantly affected their oil and gas-dependent economies.

The move is a rare example of cooperation between oil producers’ group Opec and the world’s largest non-Opec exporter.

Riyadh has increased oil production since prices started to decrease, in a bid to maintain market share and drive higher-cost producers to cut output.

Saudi Arabia produced 10.1 million barrels a day (b/d) of oil in January compared with an average of 9.7 million b/d in 2014.

The price of Brent crude fell from about $35 a barrel to about $34 a barrel immediately after news of the production freeze leaked to markets.

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