OPEC+ Readies for Output Talks With Cautious Approach Vindicated - Bloomberg
As OPEC and its allies prepare for another decision on oil output, the producers believe their defiantly cautious approach is paying off.
The coalition led by Saudi Arabia was widely criticized three weeks ago when it rebuffed calls to revive some of the crude production halted during the pandemic. Energy Minister Prince Abdulaziz bin Salman made clear that he wasn’t going to put his faith in predictions of a post-Covid rebound, saying he would only believe in the demand recovery “when I see it.”
Since then, fuel demand in the U.S. has shown strong signs of recovery. But a resurgence of the virus elsewhere has convinced the cartel it made the right call, according to several OPEC+ delegates who asked to speak anonymously. They predict the group will again refrain from significantly opening the taps when it meets on April 1.
“Prince Abdulaziz remains ever-concerned -- he’s unwilling to say that Covid is in the rear-view mirror,” said Helima Croft, chief commodities strategist at RBC Capital Markets. “More likely than not, we’re looking at a Saudi rollover of their production cut.”
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