Quoted by the FT, when asked if a pact might not be reached, he said all options were on the table, but added that Russia, the largest oil producer in OPEC+ but slightly behind the US, and seen as crucial to reaching a deal, had "Made a promise" to cut.
The planned output cuts come despite pressure from US president Donald Trump, who has advocated for high levels of production, describing lower oil prices as a "Tax cut" for consumers.
So what would be needed to stop the latest oil rout? According to energy analysts on Wall Street, any cut less than 1mmb/d will likely not help oil much, to wit: OPEC+ would need to cut by 1.5m b/d for crude to rise to $70 a barrel, according to Rystad. Saudi Arabia needs to pledge a reduction in supply of more than 500k b/d, Petromatrix says, while Saxo Bank says prices could fall if curbs don't exceed the 1m b/d level.
Saudi Arabia needs to agree to a cut in supply of more than 500k b/d to be meaningful.
Decision could be seen mostly as a "Packaging effort" if Saudis don't cut by more than 500k b/d.
"A total cut of about 1 million b/d, with a cut of 0.5 million b/d for Saudi Arabia would not be much different than what is already priced in the physical market".
Cut of 1m b/d would fall short of balancing global oil markets.
https://www.zerohedge.com/news/2018-12-06/oil-crashes-after-saudis-propose-smaller-expected-production-cut
The planned output cuts come despite pressure from US president Donald Trump, who has advocated for high levels of production, describing lower oil prices as a "Tax cut" for consumers.
So what would be needed to stop the latest oil rout? According to energy analysts on Wall Street, any cut less than 1mmb/d will likely not help oil much, to wit: OPEC+ would need to cut by 1.5m b/d for crude to rise to $70 a barrel, according to Rystad. Saudi Arabia needs to pledge a reduction in supply of more than 500k b/d, Petromatrix says, while Saxo Bank says prices could fall if curbs don't exceed the 1m b/d level.
Saudi Arabia needs to agree to a cut in supply of more than 500k b/d to be meaningful.
Decision could be seen mostly as a "Packaging effort" if Saudis don't cut by more than 500k b/d.
"A total cut of about 1 million b/d, with a cut of 0.5 million b/d for Saudi Arabia would not be much different than what is already priced in the physical market".
Cut of 1m b/d would fall short of balancing global oil markets.
https://www.zerohedge.com/news/2018-12-06/oil-crashes-after-saudis-propose-smaller-expected-production-cut
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