Related Articles
Leaders
Forward article link
Share PDF with colleagues

Opec: The rollover

The cuts were extended—but with a built-in escape hatch and implicit threat to other producers

Khalid al-Falih, Saudi Arabia's oil minister, appeared relaxed. A long day of meetings was over and, taking the microphone at the press conference in Vienna on 30 November, he seemed keen to reassert the kingdom's command of the oil market. Saudi Arabia got what it came for in the Austrian capital at the end of November. But Russia's influence was plain. Opec agreed a nine-month extension to the cuts that would otherwise have expired in Q2 2018. It forced Libya and Nigeria to accept a cap on output. The revised deal starts from 1 January 2018 but keeps the cuts, spread across the group and its non-Opec partners, at 1.8m barrels a day. It secures Moscow's cooperation again, dispelling for an

Also in this section
Opec and IEA diverge on world’s capacity cushion
13 July 2018
As trade tensions and disruptions ripple through the market, Opec and the IEA disagree on the risks to supply
Oil markets on the rise
10 July 2018
The oil-price recovery has helped to improve the outlook for oil and gas capital markets
Strategy v market dynamics
6 July 2018
Members must consider a host of complex issues as they wrestle with the problem of managing oil supply