Saudi Arabia’s Delicate Balancing Act in the Oil Market

OPEC’s voluntary output cuts and its decision to hold monthly meetings triggered a clash with speculators, the media, and central banks. As a result, volatility has increased

EOA’s Main Takeaways (7)

• OPEC’s voluntary output cuts and its decision to hold monthly meetings triggered a clash with speculators, the media, and central banks. As a result, volatility has increased.

• Oil market management requires LARGE production voluntary cuts that are announced monthly to keep the market in backwardation.