US energy policy has pushed Saudi Arabia and Russia closer together, leading to a level of cooperation inconceivable four years ago. Their leadership and coordination on such key issues as quotas have raised global oil prices since November 2016. The latest deal means OPEC will cut 800,000 b/d with the rest shared among non-OPEC producers. The deal nearly foundered as Russia appeared reluctant to agree to large cuts.
The decision to cut production to balance the market and raise oil prices goes against the wishes of the US president.
The deal may dampen US support for Riyadh, complicating Saudi damage-limitation efforts after the death of journalist Jamal Khashoggi.
Despite Tehran's concern about Russian oil output, oil-for-goods deals between Moscow and Tehran are likely to grow as US sanctions bite.
Trump's agreement not to raise tariffs on Chinese steel from January will enable US pipeline operators to expand infrastructure.
