In 2016-2017, crude oil price showed a good result, rising from $29.42 per barrel in January 2016 to $57.36 per barrel as of December 22 this year. Thus, in two years, oil grew in price by 95%.
This was possible largely thanks to Saudi Arabia and Russia, two of the world's largest oil exporters. They called for curbing production so that to boost prices. The steps taken by Saudi Arabia and Russia have had a greater effect than OPEC's efforts to maintain the discipline needed to control oil prices.
It is known that Iran and Iraq are cheating on OPEC quotas. Meanwhile, Saudi Arabia and Russia are not interested in both letting prices rise too high and letting them fall too low.
Right now oil prices are at the high limit of the range acceptable for the Saudis and Russia. Every market has price takers and price makers. Today, price makers are Saudi Arabia and Russia, if they act together.
Saudi Arabia and Russia account for 25% of the world’s oil exports. That is more than the combined shipments of the next six largest oil exporters.
