Following a closed door meeting between world powers, Russia’s energy minister announced his country has agreed with OPEC members Saudi Arabia, Qatar, and Venezuela to freeze oil production. The stipulation is that the agreement would hold only if other producing countries adhered to the same.
Russia’s energy minister Alexander Novak made the announcement today following a private meeting in Doha, Qatar.
With billions of excess barrels in storage, oil prices are unlikely to recover significantly following a production ban. Prices climbed 77-cents to $30.21 a barrel following the announcement but fell bacl to 29-cents within the hour.
(Written by: N. Reitmayer; Original information source: CBC http://www.cbc.ca/news/business/oil-opec-freeze-1.3449693)