Saudi Arabia and Russia are the world’s most influential oil producers right now, along with the U.S., but the kingdom appears to be going its own way, announcing half a million barrel output cut from December.
Oil prices have recovered almost too well with the U.S. criticizing OPEC (of which Saudi Arabia is the de facto leader) for higher prices and markets have been fluctuating on concerns over both a potential decline in supply (due to U.S. sanctions on Iran) and a potential oversupply – due to an increase in production from Saudi Arabia, Russia and the U.S. in recent weeks — that led prices to fall around 20 percent since early October.
On that note, Saudi Arabia pumped 10.7 million barrels per day in October, Russia pumped 11.4 million barrels per day and the U.S. also an estimated 11.4 million bpd.
Yergin told CNBC’s these “big three” producers were changing the face of the global oil market. “It’s the big three, it’s Saudi Arabia, Russia and the U.S., this is a different configuration in the oil market than the traditional OPEC-non-OPEC (one) and so thinking is having to adjust so there’s that new relationship … and the world is having to adjust.”