The OPEC agreement: short-term benefits for Russia

On 30 November 2016 in Vienna, the OPEC countries concluded an agreement on reducing oil production by about 1.2 million b/d (barrels per day). Non-OPEC countries decided to contribute to the agreement: Russia committed itself to reduce its production levels by about 0.3 million b/d, and other oil producers declared they would limit their total production by 0.3 million b/d. The agreement is to come into force on 1 January 2017 and will be valid for six months.

OPEC is responsible for around 41% of the world’s oil production, and includes Saudi Arabia, Iran, Iraq, Kuwait, Venezuela, Nigeria and the UAE, among others. The most important oil producers not belonging to OPEC are the USA, Russia, Canada, China and Mexico.