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Oil: OPEC + gives itself time to negotiate production cuts

by drbyos

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The special OPEC + meeting scheduled for Monday is postponed to Thursday, the time for Saudi Arabia and Russia to negotiate lower production and revise their prices. The United States is lobbying by threatening to tax oil imports.

Donald Trump is getting impatient after announcing Thursday a drop in production of 10 to 15 million barrels a day from OPEC +. He is now threatening to tighten sanctions against Moscow and tax oil imports. The United States continues to import crude oil, even though it has become the world’s largest producer. In particular, they have never bought so much Russian oil

Aramco pricing postponed to Thursday

Russia and Saudi Arabia have yet to confirm a concerted drop in oil supply. Since Friday, the Kremlin and the authorities of Ryad have mainly spent their time transferring responsibility for the plunge.

Renewing the OPEC + alliance is difficult. The challenge lies in the volume reductions that both will have to agree to. This will also determine the pricing of each operator. Notably the Saudi giant Aramco, which was to publish its selling prices this Sunday, has postponed their fixing until next Thursday, the day the OPEC + meeting was rescheduled. Saudi oil wants to remain competitive with competing oils based on the quotas that will be decided.

No quotas in the United States

The United States does not seem ready to impose quotas on its companies. This is not the solution advocated after consultations between the American oil industry and the White House or the Secretary of Energy. The weight of the antitrust law which prohibits cartels is still too strong in the United States.

Canada and Norway gesture

On the other hand, exporting countries which have not been part of the OPEC + alliance until now have indicated that they could participate in a substantial collective effort to reduce production: Canada, Norway. Oslo already made similar cuts in the past in the 1990s and early 2000s. A time when oil was worth little more than $ 30 a barrel, as it is today.

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