OPEC+ meetings in focus after Saudi's Energy leadership change

Author: Giles Coghlan | Category: News

OPEC+ meeting later this week

OPEC+ meeting later this week

Khalid Al-Falih is no longer energy minister and the question is, 'what, if anything, does this mean for the Saudi Kingdom's policy?'. 

Al-Falih created the diplomatic foundation for OPEC and non-OPEC products to co-operate in order to reduce supply. This was in an effort to support oil prices in order to try to get them to reach a level that support Saudi Government spending. 

The problem

In short OPEC+ cuts are probably not enough. Not withstanding the fact that there is not much of an incentive to stick to production cuts the global growth outlook is keeping Oil in a bear market. 

The solution 

Will the change of guard produce a change in tactics? The replacement is a man called Prince Abdulaziz al-Saud and the OPEC+ committee meeting later this week will be a focus to look for any shift in approach. So far, crude prices have been supported on the change.

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