OPEC’s New Saudi Kingpin Faces Demand Woes That Beat Predecessor - Bloomberg:
The OPEC+ alliance has a new helmsman, but he’s about to confront the same challenges that thwarted his predecessor.
Saudi Energy Minister Prince Abdulaziz bin Salman, appointed at the weekend by OPEC’s biggest member, said he plans no “radical” changes to the kingdom’s oil policy. But the cartel’s attempt to revive the market by cutting production is struggling against economic headwinds, which have so far held prices below the level most members need.
The 24-nation coalition of the Organization of Petroleum Exporting Countries and non-members such as Russia remains solid. The group has gone well beyond its targeted cut of 1.2 million barrels a day, helping to offset surging U.S. shale-oil output. Yet key members who meet in Abu Dhabi’s opulent Emirates Palace hotel on Thursday to discuss their pact, also have to grapple with fears of a recession amid an escalating U.S.-China trade war.
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