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OPEC+ Oil Strategy Success Buys Time Before Tough Choices


OPEC+ Oil Strategy Success Buys Time Before Tough Choices
Bloomberg
2/2/2021
Grant Smith
(Bloomberg) OPEC and its allies can celebrate their success in buoying world oil markets when they gather this week. But the coalition will soon be faced with some tough choices.
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Last month’s pledge by Saudi Arabian Energy Minister Prince Abdulaziz bin Salman to slash production by a further 1 million barrels a day has buttressed global markets against the latest onslaught from the pandemic. A price rebound to $57 a barrel in London is shoring up the producers’ revenues.
While that relieves OPEC+ of any need to adjust policy on Wednesday, it’ll need to start considering how long to restrain output a calculation clouded by the potential return of supply from fellow member Iran. ....

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