OPEC Leader Cites ‘New Optimism’ With Oil Prices on the Rise<br />Higher prices could also strain an agreement between Saudi Arabia and Russia to hold down production.<br />While these trends have helped push prices up, potential developments could send them lower again, from the<br />impact of shale oil producers in the United States to a collapse of the agreement on production cuts.<br />In a speech welcoming delegates to Vienna on Monday, the cartel’s secretary general, Mohammad<br />Barkindo, spoke of “a new optimism in the oil market not seen for a very long time.”<br />According to OPEC figures, the cartel has cut production by about 700,000 barrels a day from a year ago.<br />Production has fallen by 500,000 barrels a day, equivalent to around 20 percent of its output, over the last year.<br />A return to low prices might put that public offering, which is being spearheaded by the crown<br />prince, at risk, giving Riyadh a major stake in ensuring that production cuts hold.
