Oil stability has become the codeword for an implied price floor
Opec+ mastering art of targeting prices without targeting prices
Two-speed producer group is now nimble enough to make price floor work
Opec messaging could not be any clearer: oil stability has become the codeword for an implied price floor, with Saudi Arabia’s ire constantly aimed at speculators. While some commentators were caught up in the complexities of geopolitical doublespeak to explain Opec+’s surprise voluntary production cut in early April, the reasoning for the 1.66mn bl/d reduction from May through December—which includes a 500,000bl/d cut from Russia—is much simpler: uncertainty over the demand outlook. What is more nuanced is Opec+’s newfound approach. Unshackled by those cartel producers themselves shackled by production constraints, Saudi Arabia and its predominantly Middle Eastern cohorts were able to move
Also in this section
21 April 2026
After overcoming a COVID-induced demand collapse with several years of successful market management, geopolitical events have conspired to provide the pact’s biggest test to date
21 April 2026
The regime’s policy of using nuclear ambiguity as a deterrent may have failed but it has realised it has other cards to play, while its neighbours are reappraising their approach to security
21 April 2026
As the global energy system undergoes a fundamental realignment, Algihaz Holdings has established itself as a critical player bridging conventional energy markets and the next generation of renewable infrastructure.
21 April 2026
The 25th WPC Energy Congress is taking place from 11-15 October 2026 at the Riyadh Front Exhibition & Conference Center.
