The stakes are suddenly high at this weekend’s OPEC meeting
Sudden 22% drop in crude prices
A month ago OPEC was on defense against rising oil prices ahead of the midterms and a squeeze due to Iran.
Saudi Arabia and its allies opened up the pumps to help balance the market. Since then, the US relented on Iran sanctions with a host of waivers and the bottom has fallen out from crude, including 10 straight days of declines to end the week.
That sets up a surprisingly important OPEC fathering this weekend in Abu Dhabi. It’s a lower-level meeting ahead of December’s ministerial meeting.
The WSJ cites a Saudi source who says that Russia could oppose curbs.
“‘Saudi Arabia realizes that there might
be a need to reverse course next year and wants to look at the options,’
said a senior Saudi official.”
The gathering will study various proposals and one would show that under current production levels (actual, not targeted) there would be a surplus of 1 million barrels per day in the first half of 2019.