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OPEC and Russia take step towards stopping oil price slide

Fort McMurray, AB, Canada / MIX 103.7

Oilsands rivals have reached an agreement that will stop the world’s oil oversupply from getting astronomically worse.

Saudi Arabia, Russia, Qatar, and Venezuela have agreed to put in place a production freeze, that will see the countries hold at their January production levels for the foreseeable future. The move is meant to help oil prices recover on the market.

However, the problem is that the January production numbers for many of these countries are near records as is. Oil markets have barely responded to the news, with WTI Crude holding around $29 Tuesday morning, while Brent Crude has fallen 3%.

According to Bloomberg, Saudi Arabian officials said Tuesday that they were willing to engage in further measures. Experts are suggesting that any production deal will need to include Iran for the effect to be noticed.

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