OPEC reportedly seeking formal pact with Russia

• Most recently, OPEC, Russia and allied producers agreed in December to jointly curb output by a combined 1.2 million barrels per day for the first 6 months of 2019.

The details: The WSJ, citing an unnamed OPEC official, reports that "under the current draft document, the alliance could last up to three years and wouldn’t be legally binding."

The intrigue: Proposals to turn the loose partnership often called OPEC+ into a more institutional arrangement have been a moving target for a while. In December, Russian energy chief Alexander Novak said it’s unlikely Russia and OPEC will create a formal, institutional structure.

The big picture: The U.S.' return to the ranks of global oil behemoths in recent years has prompted OPEC and Russia to cooperate in an effort to bolster prices.

• As the WSJ notes, the Saudis in particular need prices above $80-per-barrel to balance their budget (right now Brent crude is trading around $62).
• The U.S. is now the world's largest producer, with output closing in on 12 million barrels per day.

What's next: Per the WSJ, OPEC members and will meet with Russia and other non-OPEC producers to debate the idea in Vienna in 2 weeks, and hope to agree to a final deal in April.