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    The OPEC flag and the OPEC logo are seen before a news conference in Vienna, Austria, October 24, 2016

    OPEC Deal to Cut Oil Production Benefitial for US-Russia Partnership

    © REUTERS / Leonhard Foeger
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    The recent agreement by the Organization of the Petroleum Exporting Countries to reduce oil production by 1.2 million barrels per day starting in January will improve Russia-US relations in the sector, Russia's trade representative to the United States Alexander Stadnik told Sputnik.

    WASHINGTON (Sputnik) – Earlier, OPEC member states meeting in Vienna, Austria agreed to the cartel’s first supply cut in eight years. Under the deal’s terms, total OPEC output will be limited to 32.5 million barrels a day, starting next month.

    "The OPEC agreement demonstrates a developing collaboration of the cartel’s members with other countries," Stadnik said Wednesday. "OPEC's decision will have positive effect on global exports, including US-Russia partnership in this area.”

    With global oil prices having already begun to rise in reaction to news of OPEC’s cut, further short-term increases are likely, followed by market stabilization, Stadnik predicted.

    Volatility on world markets pushed down oil prices from a high of $115 a barrel in June 2014 to less than $30 by January 2016, hurting exporters and producers. In the months since, prices have increased slightly and are now hovering between $45 and $50 per barrel. OPEC members have said they are seeking an average price between $55 and $60.

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    oil prices, diplomatic relations, OPEC, United States, Russia
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