Oil producers hope for a deal on production limits by early March

Billy Bambrough
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A picture taken on April 7, 2011 shows R
Russia has worked hard to try and secure a production deal with other producers (Source: Getty)

A deal to cap oil production at January levels should be completed by 1 March, according to the Russian energy minister Alexander Novak.

The deal, brokered by de facto Opec leader Saudi Arabia, has the backing of Russia, Qatar and Venezuela. Opec rebel Iran has welcomed the deal but has said it will continue to increase its output. Novak told a Russian TV channel the producers that have agreed to a cut already control enough of the global supply to drive the oil price back up.

Meanwhile, Saudi Oil Minister Ali Al-Naimi will address the US shale oil producers that have been ravaged by the 70 per cent fall in price of the past 18 months in Houston, Texas, on Tuesday.

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