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Global Oil Market: Output Cuts and Prices

Yury Bobylev Head of Mineral Sector Economics Department of the Gaidar Institute; Leading Research fellow of the Institute for Applied Economic Studies, Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences. Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Global crude oil prices surged in 2017 on the back of the production-cut agreement between OPEC and a group of non-members including Russia. In January-November 2017, Russian crude oil was traded at an average of $53/bbl in the global market, adding $11 to the previous year’s price. In late November, the agreement was extended until the end of 2018. The crude oil price in 2018 is therefore projected to stay above the 2017 average.

Key words: oil, global crude oil market, OPEC agreement, price on Russian crude oil.