for Saudi Arabia
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Nothing will change materially in the oil market until there’s a significant stock draw, a development that appears doubtful, which could ultimately force OPEC to change strategy once again.
Despite baggage old and new, the Saudis and the greater GCC are ready and willing to do business with Russia even if their visions for the Middle East don’t align.
The group has been adamant about putting together a united front to show that it will follow through with production cuts and counter critics who doubt its willingness or capability to do so.
The OPEC commission would examine whether the cartel’s behavior is designed to disadvantage U.S. oil producers and secure market power through anti-competitive behavior.
There are already signs that OPEC is committed to following through with pledges, even if indicators are contradictory and vague at the moment. The oil market has stabilized in the low-to-mid $50s, indicating the group has indeed put a floor under prices for the time being.
In just the past two weeks since OPEC announced it plans to cut output, the cartel has significantly altered market sentiment and shifted the oil market outlook for next year.
Video: Saudi Arabian Energy Minister Khalid al-Falih’s Full Comments Before OPEC Ministerial Meeting
Saudi Arabian Energy Minister Khalid al-Falih comments on his expectations for an OPEC deal, cooperation from non-OPEC members, and timelines for market rebalancing.
OPEC agrees to its first production cut in eight years, reminding the market of its enormous power, but the ultimate impact of the cartel's action is far from certain.
Oil markets and analysts have been skeptical that a deal would emerge from this week’s OPEC meeting, following stonewalling from ministers and signals of willingness to walk away without a deal from Saudi Arabia. But cartel members struck an optimistic tone that a deal will be achieved today in Vienna, sending oil prices up by 6 percent.