The saudis role in global oil market is becoming less and less important because their oilfields have been spitting out watery oil for a while now. When the well dries up, they will disappear.
First, it is important to understand whether the work agreed in November restrictions on the volume of production, and whether the current regime to continue until July, as originally planned. It should be noted that the price of Brent crude oil stabilized in the range of 54-56 per barrel for a long time and do not leave it outside. This is approximately 15% higher than before the November agreement, but still more than 50% below the highs of three years ago. So, will oil go up or we have already reached the ceiling price?
Let's start with the facts. Three things are obvious: By and large scheduled reduction target has been achieved, but the figures vary greatly from country to country. Three producers - Algeria, Venezuela and Iraq - have not reduced production, or reduced less than promised. Outside OPEC, the map confused Russia. The country seems to be reduced production, however, according to the latest reports, the total volume of production and exports of Urals crude oil increased. The other parties to the agreement adhere to quotas, and Saudi Arabia even exceeded the plan, reducing production to less than 9.8 million barrels per day (almost 300 thousand barrels below the agreed value). If not for the Saudis, OPEC has not fulfilled the plan.