OPEC - Trouble in paradise as oil drops over 4.5%
|OPEC Output Quota Issues
Spot WTI and Brent have taken a dive this afternoon in the US session as it emerged that Prince Abdulaziz bin Salman who recently took over from Khalid Al-Falih may voice concerns over the current OPEC supply cut deal.
It is said that Saudi Arabia will no longer compensate for other members non-compliance.
OPEC are due to meet on December 5th in Vienna and it looks like there could be some fireworks.
This seems like a very risky tactic considering the Saudi Aramco IPO is on its way but the nation may feel like enough is enough as they have overcompensated for other sluggish members for a while now.
The price of WTI has fallen around 4.84% on the session today, hitting a low of USD 54.97 per barrel. Interestingly all of this has come after lots of rumours that the OPEC+ group may extend the current output cuts to the end of 2020.
This still may be the case but it seems that Saudi Arabia will not pick up the slack left by other countries in the cartel.
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