Crude Oil Prices Still Soft, Despite Production Cuts from OPEC, Russia, Saudi Arabia

SUGAR LAND--January 21, 2019--Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--After prices fell about 30% last October and November, the Organization for the Petroleum Exporting Countries (OPEC), in concert with Russia, in early December announced temporary production cuts of about 1.2 million barrels per day (BBL/d) would take place starting in January. Those promised cuts failed to put a firm floor under prices, so on January 7, Saudi Arabia, acting on its own, announced it would cut its production by up to 800,000 BBL/d in an effort to drive prices closer to the $80-$85 per barrel range. The production cuts, which would bring Saudi Arabia's output to 7.1 million BBL/d, are scheduled to go into effect at the end of this month.

Within this article: Details and analysis on how the world is responding to low oil prices, and how U.S. policies are being affected.