Russia and Saudi Arabia's oil-market management challenge: Kemp | Reuters

Russia and Saudi Arabia's oil-market management challenge: Kemp | Reuters:

Russia and Saudi Arabia have started to discuss cutting production next year following steep falls in oil prices in the last month, according to a report by Russia’s TASS news agency.

The report has not been confirmed but has arrested the rapid decline in prices, at least temporarily, and should not come as a surprise given the altered dynamics in the oil market.

The oil market is best thought of as a complex adaptive system, characterized by long lags and positive feedback mechanisms, which exaggerate the impact of even small changes in production and consumption.