Hints and tips:
Related Special Reports
Related Topics
...This has grown out of the 1970s call by third world countries for a new international economic order, specifically to direct more resource rents to them — as had already been achieved by Opec....
...Riyadh has used its political and economic muscle to force some Opec+ members to share the burden of the cuts....
...Saudi Arabia has posted a budget deficit for last year, as its income from oil sales was hit by Opec member production cuts and lower prices....
...The measures add to a series of output cuts by Opec+ members since 2022 designed to support prices amid rising US production and tepid global demand....
...“It is almost like a chess game that markets are playing with Opec,” she said....
...In one scenario, Opec+ could decide not to do anything and tighten the market further, leading to even higher prices....
...Opec+ now controls barely half of global oil production as demand growth slows “drastically” and US output reaches new highs, the west’s energy watchdog said on Thursday....
...Last week, members of Opec+ agreed to make voluntary cuts to oil production to prop up prices. Brent crude prices have fallen about 7 per cent since just before the announcement....
...The Opec+ meeting had first been delayed from Sunday as members wrangled over production targets and was moved online rather than have ministers meet face to face in Vienna at Opec’s headquarters....
...“When Opec cuts production in this way, they risk losing market share,” said Rats at Morgan Stanley. “A lot of Opec countries are keen to maximise their resources.”...
...The postponed Opec+ meeting will now be held online rather than at the group’s headquarters in Vienna, a spokesman for the cartel said on Thursday, in a potential sign of a deepening rift between members...
...Read more on Opec+ here...
...Prices were already slipping ahead of the announcement but the sell-off accelerated following Opec’s statement....
...Saudi Arabia is preparing to prolong oil production cuts into next year as Opec+ weighs further reductions in response to falling prices and rising anger over the Israel-Hamas war....
...Opec+, which includes Opec members plus countries including Russia and Kazakhstan, has announced several rounds of reductions since October 2022....
...Oil prices slumped more than 4 per cent on Wednesday after the Opec+ oil cartel announced it would reschedule its meeting this week....
...And there are fears among some in the sector, that Opec could lose its patience and try to flood the space with oil and kill US production once and for all....
...On Wednesday, the Opec+ oil cartel announced it would postpone its planned meeting to next week, sending oil prices lower....
...But you can be a pro-west, global south player and still stay in Opec,” Oliveira said....
...“There may be some testing ahead of the Opec+ meeting....
...Peak oil is within sight and there is not much Opec+ can do about it. chris.giles@ft.com...
...The politics, as ever with Opec+, are complicated....
...He said prices could fall $30 if Opec “misjudged both the timing and the magnitude of those releases of supply”....
International Edition