On Thursday, delegates at the meeting said that OPEC countries and some other big producers are considering cutting their combined production by about 1 million barrels a day, though details are scant and much depends on how much of an output cut Russian Federation agrees to on Friday.
The Organisation of Petroleum Exporting Countries (OPEC) and other major oil producers yesterday agreed to cut about 1.2 million barrels of oil to address falling oil price, which is now facing a record low of $63 a barrel. He said service companies "have all been on the edge of our seat watching OPEC".
But after hours of talks, Iran gave OPEC the green light and Russian Federation said it was ready to cut more.
The power of OPEC has been diminished, undercutting one of the major geopolitical forces of the last half century.
Analysts say that the details of any agreement will be key in determining what happens next to prices, particularly the size of any reduction and the question of whether Iran is included or not.
The Saudi oil minister refrained from answering a question on whether the OPEC decision might prompt Washington to withdraw support, but said Saudi-U.S. relations were based on shared values.
OPEC finally broke an impasse over production curbs, agreeing on a larger than expected cut with allies after 2 days of fractious negotiations in Vienna.
Heavyweight Saudi Arabia has been pushing a cut of about 1 million barrels a day, but the oil cartel was not able to make a decision on Thursday. The end result may be a muddled middle course that neither stabilizes the price of oil nor mollifies a USA leader obsessed with keeping gasoline cheap.
"OPEC, or more precisely Saudi Arabia, has been the head honcho of the oil world for almost six decades; yet these days it seems unable to make a decision without Russia's blessing, let alone without risking the wrath of the USA president", said Stephen Brennock, an analyst at PVM Oil Associates in London. "Saudi Arabia has a long-term goal of managing the oil market to avoid the sharp falls and spikes which hurt demand and the ability of the industry to develop supply". So, the February Brent crude on London's ICE Futures exchange at 9:50 Moscow time fell to 61.14 per barrel. He also said his country could carry a bigger burden than others. As for OPEC itself, the group was walking a tightrope between cutting sufficiently to stabilize the price, and not too much as to unleash a Twitter storm by US President Donald Trump. Whether to exempt Iran from making any cuts was one sticking point in the meeting, said a delegate.
The world oil market suffered a severe shock. But it has agreed to shoulder more of the burden than expected, at about 17% of the total cut, with a similar amount covered by other non-Opec partners, and the oil cartel making up the rest.