OPEC Leader Cites ‘New Optimism’ With Oil Prices on the Rise
Higher prices could also strain an agreement between Saudi Arabia and Russia to hold down production.
While these trends have helped push prices up, potential developments could send them lower again, from the
impact of shale oil producers in the United States to a collapse of the agreement on production cuts.
In a speech welcoming delegates to Vienna on Monday, the cartel’s secretary general, Mohammad
Barkindo, spoke of “a new optimism in the oil market not seen for a very long time.”
According to OPEC figures, the cartel has cut production by about 700,000 barrels a day from a year ago.
Production has fallen by 500,000 barrels a day, equivalent to around 20 percent of its output, over the last year.
A return to low prices might put that public offering, which is being spearheaded by the crown
prince, at risk, giving Riyadh a major stake in ensuring that production cuts hold.