Riyadh- Saudi Arabia has drawn a new global oil policy over the year 2017 and the first quarter of 2018 as the Kingdom has played a major role in the conclusion of the deal between Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC states for the first time in history, proving the Kingdom’s capability to create balance for oil markets.
During a meeting that was held in the Kremlin in Moscow on Tuesday between Deputy Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, Second Deputy Premier and Minister of Defense, with Russian President Vladimir Putin, the two parties discussed means of enhancing Saudi-Russian harmonization on the oil agreement that is led by the Kingdom, which for the first time in the history of the organization included the cooperation of non-OPEC oil producers, led by Russia.
The meeting discussed opportunities to stimulate this agreement to achieve positive returns and stability in oil markets, which means more Saudi-Russian consensus on the oil file.
Whoever has been following the fluctuations of oil prices during the past two years will find that the prices fell sharply as the price of crude oil hit $27 per barrel in early 2016 before the prices witnessed remarkable stability between 30 to 40 dollars per barrel.
As Saudi Arabia started mid-2016 its serious movements to reach a historic agreement between OPEC and non-OPEC states, the prices started to consolidate again, which led them to rise and hit $55 for crude oil after reaching the first decision of its kind to reduce production.
The decision to cut oil production to 1.8 million barrels per day (bpd), which was taken between OPEC and non-OPEC states in 2016, was implemented early this year and was supposed to end in June before they decided to extend the period until the end of the first quarter of 2018 during their last meeting in Vienna.