Saudi and Russia energy chiefs downplay U.S. shale threat

Line of flags for countries attending the 2018 World Economic Forum in Davos, Switzerland
National flags at the World Economic Forum meeting in Davos, Switzerland. Photo: Dursun Aydemir / Anadolu Agency / Getty Images

Energy ministers from Saudi Arabia and Russia, seated next to U.S. Energy Secretary Rick Perry on a panel at the World Economic Forum, on Wednesday downplayed the impact of surging U.S. oil production on the global crude market.

Why it matters: The U.S. boom has forced petro-states including Saudi Arabia and Russia to recalibrate their strategies and restrict output to try and tame the global glut that caused prices to collapse in 2014. OPEC and Russia are part of a production-limiting deal that's slated to run through 2018.