The Saudis and Russia have excess capacity to make up for limits on supply from Iran, Venezuela

Bloomberg/Fuel Fix:

OPEC needs to keep working with other oil producers to manage global supplies as demand for crude faces “headwinds,” the head of the organization said.

The historic supply deal between Saudi Arabia, Russia and other producers reached in late 2016 needs to become permanent, Mohammad Barkindo, secretary-general of the Organization of Petroleum Exporting Countries, said Sunday in an interview in Dubai. Oil demand is “robust,” though crude use “is beginning to face some headwinds,” he said, without elaborating.

“There is no viable alternative on the table other than to institutionalize and make this cooperation between ourselves and our good partners from non-OPEC in a permanent fashion,” Barkindo said. Low crude prices hit the oil industry and starved it of investment, leaving continued cooperation among producers as they only way to maintain stability in markets, he said.
...
Saudi Arabia and Russia led OPEC and allied producers in agreeing to cap output starting in January 2017 to curb a glut. They changed course in June and have since pledged to ensure that supplies are adequate to meet demand. A committee of OPEC members and allied producers is set to meet next week in Algeria to review compliance with their production targets, though it’s unclear whether the committee will try to enforce output quotas for individual countries.

Khalid Al-Falih, the Saudi energy minister, and his Russian counterpart Alexander Novak met Saturday and “re-emphasized their joint commitment to ensuring the adequacy of oil supplies, especially considering market uncertainties on the horizon,” the Saudi energy ministry said Sunday in a statement. The ministers reviewed “the state of the global economy, oil demand and potential risks to supply,” according to the statement.
...

Not mentioned is the fact that US production has dramatically increased to the point that it is a significant exporter.  It will become an even bigger one as infrastructure is completed to move oil and gas from West Texas to ports along the coast.  It could also significantly reduce it importing of heavy crude if refineries were restructured to deal with the light crude from the shale wells.

Even before that happens, the world just does not need Iranian and Venezuelan production and the pressure on these two rogue states to change their ways would benefit the people who subsist in those poorly run countries.

Bloomberg reports: North Dakota Is Now Pumping as Much Crude as Venezuela