Saudi Arabia and Russia said they are expecting both OPEC as well as non-OPEC producers to come up with an agreement during meetings on Saturday to cut back on the output of oil to prop prices up during the first joint move in the past 15 years.
Khalid al-Falih the energy minister from Saudi Arabia the defacto OPEC leader and top exporter of oil said a deal is already in place and we are only adding the final touches.
Energy Minister of Russia Alexander Novak while speaking at a meeting between both members and non-members of OPEC in Vienna said he did not see risks of the deal failing.
The meeting between the Organization of Petroleum Exporting Countries (OPEC) and producers that are not part of the cartel hope to reach an agreement of non-OPEC members cutting as much as 600,000 barrels daily, after members of OPEC last week agreed to reduce daily output by 1.2 million barrels
Prices of oil have dropped by over half during the last two years after OPEC leader Saudi Arabia increased its output attempting to drive higher cost oil producers such as shale companies in the U.S. from the market.
Oil then plunged to less than $50 a barrel and even as low as less than $30, from a high of over $115 during June of 2014.
That drop helped lower growth of shale output in the U.S., but also hit revenues hard for economies that are oil-dependent such as Russia and Saudi Arabia, which prompted the two biggest oil exporters to begin their first cooperation related to oil production since 2001.
Mohammed Barkindo the Secretary General of OPEC said he is expecting 12 countries that are non-OPEC to sign this agreement with OPEC members and contribute fully to the 600,000 daily cut in barrels or even more.
Sources within OPEC have said that non-OPEC members such as Oman, Mexico, Kazakhstan, Azerbaijan, Russia, Sudan, South Sudan, Malaysia and Bahrain would be in attendance at the meeting.
It is believed that Bolivia might attend while Brunei sent commitments to the deal but could not attend.
Saudi Arabia on Friday told its European and U.S. customers it was going to reduce its oil deliveries starting in January, which signaled the kingdom has already begun implanting production cuts.
OPEC countries Kuwait, United Arab Emirates and Iraq have told their buyers as well of their planned reductions for crude production.