Oil prices have yet to find a bottom but Saudi Arabia will not budge without a commitment from Russia that it is willing to cooperate with OPEC to balance supply and demand, MEES understands. A Gulf source says that without a Russian contribution, OPEC is unlikely to act alone.

Saudi Arabia and Russia are the top two producers of oil and liquids in the world after the US, which has now overtaken the two oil giants as the world’s leading oil producer. Not only did US crude output soar by 1.2mn b/d to 8.66mn b/d for 2014, but NGLs output rose by 260,000 b/d to almost 3mn b/d, giving a total oil output of 11.6mn b/d. Saudi output, including NGLs, has been steady at just under 11mn b/d since 2012 (see graph). (CONTINUED - 1979 WORDS)