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Reuters: Exclusive: OPEC, Russia consider 10-20 year oil alliance - Saudi Crown Prince
NEW YORK (Reuters) - Saudi Arabia and Russia are working on a historic long-term pact that could extend controls over world crude supplies by major exporters for many years to come.
Saudi Crown Prince Mohammed bin Salman told Reuters that Riyadh and Moscow were considering a longer deal to extend a short-term alliance on oil curbs that began in January 2017 after a crash in crude prices.
“We are working to shift from a year-to-year agreement to a 10-20 year agreement,” the crown prince told Reuters in an interview in New York late on Monday.
“We have agreement on the big picture, but not yet on the detail.”
Russia, never a member of the Organization of Petroleum Exporting Countries, has worked alongside the 14-member cartel during previous oil gluts, but a 10-20 year deal between the two would be unprecedented.
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WNU Editor: This alliance makes sense. For oil producers it is in everyone's interest that prices stay high, and the only way to control that is via through production cuts. But will this be enough to curtail American energy frackers .... I doubt it. And as for a 10 - 20 year alliance .... considering the history of oil prices, markets, and production .... I doubt that such a rigid arrangement will survive that long.
