Falih and Novak guided their allies to an agreement for a sizable production increase.
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The most powerful partnership in the global oil market, which rescued the industry from a deep slump, faces its toughest test yet. Crude has collapsed by more than 30 percent and Saudi Arabia is urging Russia to collaborate in cutting production again. Their alliance successfully revived markets two years ago, but it's unclear if Moscow is on board this time. Successful PartnershipIt's two years since Saudi Arabia and Russia first set aside decades of commercial rivalry and ideological differences to forge a 25-nation alliance of oil producers, now commonly called OPEC+. Through 18 months of joint production cuts starting in January 2017, the group cleared an oil glut and boosted prices, ending the industry's worst downturn in a generation.More Cuts?For now at least, the Saudis do seem to favor higher prices. OPEC+ needs to cut supplies by at least 1 million barrels a day, Falih said in Abu Dhabi on Nov. 12 . Prices have since fallen below the comfortable range of $65 to $75 advocated by Putin in early October.Putin said last month that, given the positive results of Russian co-operation with OPEC, the alliance should continue.
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