As Their Clout Wanes, Saudi Arabia and Russia Extend Oil Production Cuts

As Their Clout Wanes, Saudi Arabia and Russia Extend Oil Production Cuts
Robert McNally said that What OPEC, and to some extent Russia,
and these other countries have been doing since the price collapse of 2014 is pretending to manage the market,
Riyadh argued at the time that bolstering prices would spur investment in rival sources of energy like American shale producers,
and it hoped that lower prices would kill those rivals’ growth.
Amid weak prices late last year, OPEC countries, along with Russia, agreed to cut around 1.7 million barrels from their collective output.
In the late 1990s, a series of cuts by OPEC, as well as other producers outside
the organization, lifted prices after a collapse to the $10 per barrel range.
In a statement on Monday, Saudi Arabia and Russia said they had "agreed to do whatever it takes to achieve the desired goal of stabilizing the market," adding
that a deal between major oil exporters to reduce production should be extended through the end of March.
And higher prices in recent months have thrown a lifeline to shale oil companies in the United States, where output had plunged when prices fell.