Wednesday 14 August 2019

#SaudiArabia needs more Opec production cuts, and soon | Financial Times

Saudi Arabia needs more Opec production cuts, and soon | Financial Times:

Khalid al-Falih has long vowed to do “whatever it takes” to support the oil price. If Saudi Arabia’s energy minister is good to his word, expect the Opec kingpin to try and corral the wider group and its allies into a deeper production cut when they next meet in December.

The kingdom has already sharply reduced production in the past seven months, dragging along non-member Russia and Opec allies such as the United Arab Emirates in restricting output to prop up prices.

But the strategy has not really worked. Despite US sanctions slashing Iran’s exports and heavily weighing on Venezuela’s output, crude tumbled back below $60 a barrel last week, before nosing above that level on Tuesday.

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