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OPEC has kept up production to pressure high-cost rivals, such as the developing U.S. shale oil producers. The International Energy Agency expects it will take several years before OPEC can effectively price out high-cost producers.

“Oversupply remains an issue, as Iran pumps more oil into the world market and other nations continue to produce at high levels. OPEC has also done nothing to curb its production but at its meeting last week, Saudi Arabia‘s new oil minister said the market appears to be balancing and the trend is higher,” according to CNBC.

Saudi Arabia previously said it would join a production freeze deal if Iran agreed to curb output. However, Iran has maintained that it should be allowed to raise production to previous levels before the introduction of Western sanctions over Iran’s nuclear program, instead arguing for individual-country production quotas.

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United States Oil Fund