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Historic Worldwide Deal Ends Oil Price War

Oil-producing nations around the world reached an unprecedented agreement over the weekend that will cut world oil output by nearly 10 percent in an effort to end the devastating price war waged worldwide this year over the price of oil. That price war had threatened to break the so-called OPEC+ alliance between members of the Organization of Petroleum Exporting Countries (OPEC), including Saudi Arabia and Iraq, and allied producer states such as Russia and Mexico; just a few weeks ago, that partnership appeared to be on life support. 

But now, a deal has been struck between the OPEC+ nations and other leading producer nations, including the United States, Canada, and Brazil, under which OPEC+ nations will cut production by 9.7 million barrels a day, while the non-OPEC+ nations will consider, but have not committed to, further cuts in production. Talks had reportedly stalled at times over the last seven days, but the involvement of the non-OPEC+ nations in the agreement showed the lengths to which producer nations were willing to go to end the oil price war and is politically significant since nations like the United States have historically criticized OPEC+ production policies.  

© Steptoe & Johnson PLLC. All Rights Reserved.National Law Review, Volume X, Number 105
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About this Author

Jason Lucas, Energy Attorney, Steptoe Johnson Law Firm
Member

Jason Lucas focuses his practice in the areas of energy and mineral law. Mr. Lucas regularly assists clients with mineral title examinations and title opinions and coordinating and performing due diligence and mineral acquisitions throughout Ohio and Pennsylvania. Mr. Lucas also advocates for client interest through his leadership positions in various regional and national oil and gas associations.  Mr. Lucas is one of the founders of the Appalachian Basin Association of Division  Order Analysts and serves as an Officer of NADOA, the National Association of Division...

(304) 231-0464
Member

Andy Graham focuses his practice in the areas of energy and mineral law (oil and gas, coal, and coalbed methane), real estate, and commercial transactions.  Mr. Graham regularly assists clients with mineral title examinations, coordinating and performing due diligence, buying and selling mineral assets, and issues related to surface use and compensation arising from mineral development.  He is admitted in Texas and West Virginia.

(304) 598-8161
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