BancaMarch: Saudi Arabia’s energy minister has emphatically warned that the cuts imposed by OPEC+ on oil production could extend beyond March.
Five days ago, news came out of the agreement reached by member countries on 30 November to reduce supply by 2.2 million barrels per day, with a deadline of March 2024. Saudi Arabia, which is concentrating the greatest efforts to contain supply, has accumulated almost half of the cuts applied by the organisation.
The price of Brent crude was trading at $78/barrel at the time of the minister’s speech, well below the $84/barrel level prior to the OPEC meeting. The Saudi minister focused his speech on giving credibility to the agreed measures, in a context in which the markets are questioning compliance with the supply restrictions.