Vienna — OPEC and its 10 non-OPEC allies, including Russia, on Tuesday ratified a charter formalizing their oil market management alliance after two and a half years of collective supply cuts aimed at bolstering prices.
The 24 countries control about half of global oil production, and ministers said at a signing ceremony at the OPEC secretariat that the charter would demonstrate their resolve to cooperate on supply management.
Saudi energy minister Khalid al-Falih called the OPEC/non-OPEC coalition “one of history’s strongest producer partnerships, spanning the entire world, from east to west, and which has committed itself to promoting market stability on an ongoing basis.” Russian counterpart Alexander Novak said the charter would provide a platform for the participants to continue regular meetings and to “react if necessary” to changing market conditions. The signing comes after OPEC agreed on Monday to a nine-month extension of its production cut agreement. Non-OPEC partners went into a meeting later Tuesday to consider their part of the cuts. The agreement calls for a 1.2 million b/d supply cut through the first quarter of 2020. Nick Bit: OPEC is bigger and badder then ever… They now control half the worlds oil supply. This is a big deal that the market s sleeping on