Opec+ meeting 4-5 January 2021- conclusions

[Tomasz + 1,608]

Talk of Russia and Kazakhstan increasing production in Feb and March with a total of 0.075 million bpd (Russia 0,065 Kazakhstan 0,010)

Saudi Arabia is offsetting this increase in production by cutting itself

All in all, a good exit for both parties.

In the event of an increase in production by 0.5 million barrels, Russia would get 0.125 million barrels, and so they get a safe deposit to increase production by  0.065 and the overall production does not increase, which is what Saudi Arabia and the rest of OPEC + are satisfied with.

The reason Russia an Kazakhstan gave is that its the winter season there and they need more for their domestic consumption.

So technically there is NO added exports/ supply to the market and Opec Plus can call it a rollover

Edited January 5, 2021 by Tomasz

[Tomasz + 1,608]

Well my information is updated thanks to Anas Alhajji

Big surprise: a million barrel voluntary cut from Saudi Arabia for February and March

Is it mid 80s again? KSA later laterly emphysis that it will never repeat the swing producer role

After that, Donald Trump, who has been very active in the oil market for the last 4 years, is leaving. The new US president will probably not be so careful about oil prices to take care of American consumers on the one hand and shale oil production on the other.

Please update article on oilprice.com

Edited January 5, 2021 by Tomasz

[Roch + 537]

Saudi Arabia "voluntarily" cut 1 mm bbl. 

Please.

Do a check.  Saudi Storage Tank farms in Rotterdam , South Africa, China and Motiva are full.  

Countries like Brazil , Iran, U.S. Iraq and Guyana are eating away at Saudi  oil exports.

The Production Cuts have always been a fraud.  There is no way to monitor production within a country. 

What's important is how much you export , how much you sell to consumer countries.  

Production is just a cover.  

Saudi Aramco is the only OPEC member that has extensive Storage Tank farms around the world.  Their advantage. 

I believe Saudi agreeing to one million bbl cut is an effort to give the impression of OPEC unity, whereas it may be an affirmation of the declining organization itself. 

Saudi domestic storage is likely full also .  

Too much oil.  Even post pandemic. 

 

 

Edited January 6, 2021 by Roch