Friday, December 06, 2019

Late one to early crude commotion at OPEC

So after having kept analysts and media in the OPEC Secretariat almost till midnight, and then not issuing a final brief, the producers' group has started day two with its planned OPEC and Non-OPEC meeting of ministers. 

The figure of a 500,000 barrels per day (bpd) deepening of the cuts remains on the cards, but whether it is a paper adjustment or a real-term cut remains to be seen. 

Even before proceedings began, Iranian Oil Minister Bijan Zanganeh left the meeting, with there being little sense in his sticking around given Tehran is exempt from the cuts. 

However, he did quip to journalists on his way out that the deal being brokered is indeed a "fresh cut". Inside the meeting hall, Russian Oil Minister Alexander Novak said the OPEC and non-OPEC agreement was working despite doubts expressed by sceptics, and his Saudi counterpart Abdulaziz Bin Salman asked for the "faith and mercy" of analysts and market commentators so that they don't "twist" numbers put out by OPEC+. (Yup, he really did!)

The oil market will have to believe OPEC+, and objective as well as cynical analysts will have to trust them, he added. Felt more like a sermon, and less like a statement, but hey - whatever works. More drama from here later in the day. But that's all for the moment folks! Keep reading, keep it 'crude'! 

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© Gaurav Sharma 2019. Photo: OPEC and Non-OPEC Meeting Room, Vienna, Austria © Gaurav Sharma, December 2019. 

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