Columnist for the Financial Times Nick Butler writes that by agreeing to painful enough for the initiative, Saudi Arabia has recognized the limitations of its influence on the oil market.
Butler noted that the agreement with Russia with the support of other manufacturers of suspension of oil production at the level of the January indicators do not immediately affect the situation, however, Saudi Arabia was worried first, and destroyed the myth of its omnipotence.
The expert stressed that in the long term the most important realignment of forces in the oil industry. Saudi Arabia are unable to banish from the market of producers of shale oil, but still managed to live through the hardest two years, reducing costs. However, it is currently not known who will be the winner in the circumstances.
However, Butler notes that for final configuration changes on the oil market requires a huge number of factors and events. First you want to cut oil production to three million barrels per day, and this should happen at the expense of Saudi Arabia. Also on the market should see an Iran that can put out about four hundred thousand barrels. In turn, the analyst doubted these numbers, but I am sure that Iran will be able to affect the price.