A few days ago, representatives of OPEC countries signed a new cooperation charter with other major producers, including Russia, which aims to establish a “permanent cooperation” that is necessary to adapt with the surge in the American supply of crude.

The new agreement between OPEC and its partners in the so-called “OPEC +” is a sign of the Organization’s efforts to maintain its position in the market to face the increase in US shale oil production

 Russian Energy Minister Alexander Novak said all OPEC ministers agreed to extend the agreement to cut production until March 2020 after Russia and Saudi Arabia agreed on such cuts at the Group of 20 summits in Osaka.

The charter which Saudi Arabia described as “historic” was signed in a meeting at OPEC headquarters in Vienna, attended by representatives of the 14 OPEC countries and the ten countries that have allied with OPEC including  Kazakhstan, Malaysia and Mexico since 2016 in order to coordinate the level of production and influence on oil prices.

 Saudi Energy Minister Khalid al-Falih said that the charter will allow OPEC and non-cartel countries to reach more cooperation between them to preserve oil prices. On the other hand the Iranian minister of oil, Bijan Namdar Zangeneh, said that the charter “would have no impact on OPEC, its mechanism or decision-making process.”