That’s an innovation. Yesterday evening we waited until late in the evening for the OPEC press conference, which always takes place directly after the meeting in Vienna. But this time it was cancelled. A novum! Today they will probably organize an official PK. But there is a decision. The waiting journalists on site were informed that it had been agreed to reduce the oil production by 500,000 barrels per day. In the first three months of the coming year. This means an additional reduction to the previous 1.2 million barrels per day – now -1.7 million per day.
The following question should also be interesting: countries such as Saudi Arabia in particular have already cut their subsidies much more than necessary. Should the Saudis (once again) have to do most of this additional reduction on their own, would these -500,000 barrels per day be added to the already reduced amount, or to the officially reduced amount of Saudis? This question then decides whether this extended cut has any effect at all for the real oil market in the form of less supply to push the oil price upwards. And will the Saudis even address this question in detail?
Today the meeting takes place between the oil cartel and the external partners (Russia in focus). This time OPEC probably wanted to wait for an agreement with Russia before organising the PC. It will probably be interesting to see how an agreement with Russia will be structured. Because the birds are already whistling it off the roofs. Russia wants to produce more oil. Will they come up with some optical trick in Vienna today so that Russia can produce more oil in real terms? Will Russia still stay on board purely optically with the large reduction in production? Since yesterday afternoon, the WTI oil price has remained almost dead at around 58.40 Dollars. The markets want clarity at last, but OPEC is keeping the market waiting.