OPEC+ decided to keep a tight limit on oil production next month, sending prices soaring in a market that had been expecting additional supply. The agreement is a victory for Saudi Arabia, which has consistently pushed to tighten the market. The cartel had been debating whether to restore as much as 1.5 million barrels a day of output. But after being urged to “keep our powder dry” by Saudi Energy Minister Prince Abdulaziz bin Salman, members agreed to hold steady at current levels -- with the exception of modest increases granted to Russia and Kazakhstan. In a briefing after Thursday’s meeting, the prince went one step further by making the kingdom’s additional 1 million barrel-a-day production cut open-ended. He gave no date for phasing out the voluntary reduction and told reporters he is in no hurry to do so.
As they hold out, others will buy their oil at 60 bucks and the ten year will rise to keep the dollar strong. If oil continues to rise close to 70 then American pil exports become profitable.
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