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.

ForexLive
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose