iPolitics By Quinn Barrie-Watts. Published on Jan 6, 2021 11:59am (Gina Dittmer via Public Domain Pictures)
The Lead
At the end of yesterday’s meeting of the Organization of Petroleum Exporting Countries, Saudi Arabia announced a large cut in crude-oil production.
“We are the guardian of this industry,” Saudi Energy Minister Prince Abdulaziz bin Salman said Tuesday, stressing that the decision was made unilaterally by Crown Prince Mohammad bin Salman himself.
While Russia had been pushing for an increase of 500,000 barrels a day for February, Saudi Arabia announced an additional cut of one million barrels a day in February and March, while the remaining majority of the group’s output would remain unchanged. However, Russia and Kazakhstan will be allowed to produce a combined 75,000 barrels a day in those months.
The alliance of producers led by Saudi Arabia and Russia must decide whether it can continue to restore crude supplies without capsizing the price recovery they spent most of 2020 working to achieve.
The alliance of producers led by Saudi Arabia and Russia must decide whether it can continue to restore crude supplies without capsizing the price recovery they spent most of 2020 working to achieve.
Moscow believes that the group which slashed output during the pandemic can revive another 500,000 barrels a day of idle capacity in February, on top of an increase scheduled for this month. Riyadh, which has favored greater caution, is keeping its own views under wraps.
“The outlook for the first half of 2021 is very mixed,” OPEC Secretary-General Mohammad Barkindo said at a preparatory meeting on Sunday. “There are still many downside risks to juggle.”
Jan 05 2021, 1:42 AM
January 04 2021, 1:17 AM
January 05 2021, 1:42 AM
(Bloomberg) OPEC warned of risks to the oil market from the resurgent pandemic, a day before the group and its allies meet to consider whether to increase production.
(Bloomberg) OPEC warned of risks to the oil market from the resurgent pandemic, a day before the group and its allies meet to consider whether to increase production.
âThe outlook for the first half of 2021 is very mixed,â OPEC Secretary-General Mohammad Barkindo said at a preparatory meeting on Sunday. âThere are still many downside risks to juggle.â
The alliance of producers led by Saudi Arabia and Russia will decide on Monday whether it can continue to restore crude supplies without capsizing the price recovery they spent most of 2020 working to achieve.