International experts and governments have been closely watching the drama going on in the international market of crude oil. According to The Wall Street Journal, Saudi Arabia is going to quit the overproduction of crude oil for the sake of preventing oil prices from going down any further and, if possible, backing their new growth.
While Saudi Arabia is planning to abandon excessive production, the rest of the OPEC may well cap their production at the current levels. This way, they are planning to back oil prices and avoid irritating President Trump at the same time. At this point, they are close to compromising. With that being said, oil-exporting nations are now trying to find the balance between Washington's interests (which means to avoid backing another oil price rally) and shrinking their oil production to a point where it doesn't push the prices down either and instead stabilizes the market.
The decision that is now considered by the OPEC actually boils down to masking the contraction fo their oil production. Under such a scenario, the cartel is probably going to announce their plans to preserve the current production levels. However, in reality, the production is likely going to shrink relative to the plans. At the same time, international experts anticipate lower prodiction in Iran and Venezuela , which is definitely going to affect the global market supplies of crude oil.
It's interesting to note that the OPEC and Saudi Arabia started looking for a compromise after Donald Trump balmed them for backing very high oil prices. Not so long ago, Donald Trump thanked the Saudis for contributing to lower oil prices and asked them to contribute to the situation a bit more.
