The energy ministers from four countries met in Qatar on Tuesday where an agreement was reached between OPEC member Saudi Arabia, Qatar, and Venezuela and non-OPEC member Russia to freeze crude oil at January levels.
The crude oil freeze is conditional of the other oil producers joining the initiative, according to Russian energy minister Alexander Novak.
OPEC producers Iran and Iraq were not involved in the meeting and are included in that “other category.”
Crude oil production by non-OPEC member Russia reached an all-time high of 10.878 million barrels per day (b/d) in January while Saudi Arabia’s oil production has been operating at record levels above 10 million barrels per day for over a year and increased to 10.2 million b/d in January.
Last Friday crude oil prices rose to the highest one day level in 7 years after a news report surfaced from the Wall Street Journal that a meeting would occur between OPEC and Non-OPEC member Russia to slow production levels.
Crude oil prices remain nearly 70 percent below its peak in mid 2014 due to a combination of an oversupply of crude oil along with weaker demand due to slower global growth.
Global oil supplies rose by 2.6 million barrels a day in 2015 after increasing 2.4 mb/d in 2014.