Something pretty dramatic happened last Friday in Vienna, Austria. For the past three years, Russia and a few other non-OPEC countries have coordinated and cooperated with Saudi Arabia (which runs OPEC) in order to control the price of oil worldwide. Russia (mainly) plus OPEC has been called OPEC+. Creative, no? Given the COVID-19 coronavirus worldwide scare (much more a scare than an actual pandemic), and given the pullback in many countries, like China, of reducing manufacturing with the consequence of reducing their need for oil, and given there is now a surplus of oil sloshing around the world, the Saudis are spooked and want to cut production, NOW, in order to avoid having the price of oil drop into the sub-basement. Last Friday Russia walked into OPEC HQ in Vienna and said nyet to any production cuts. Translation: OPEC+ is dead.
Something pretty dramatic happened last Friday in Vienna, Austria. For the past three years, Russia and a few other non-OPEC countries have coordinated and cooperated with Saudi Arabia (which runs OPEC) in order to control the price of oil worldwide. Russia (mainly) plus OPEC has been called OPEC+. Creative, no? Given the COVID-19 coronavirus worldwide scare (much more a scare than an actual pandemic), and given the pullback in many countries, like China, of reducing manufacturing with the consequence of reducing their need for oil, and given there is now a surplus of oil sloshing around the world, the Saudis are spooked and want to cut production, NOW, in order to avoid having the price of oil drop into the sub-basement. Last Friday Russia walked into OPEC HQ in Vienna and said nyet to any production cuts. Translation: OPEC+ is dead.