Saudi Struggles to Convince Russia Towards Cut's

OPEC+ cuts can “absolutely” go beyond the first quarter of 2024 according to Saudi Energy Minister Prince Abdulaziz bin Salman speaking with Bloomberg.

• “I honestly believe the best decision we made was to delay the meeting, I honestly believe the delivery 2.2 [mn bpd] will happen” he said.
• He said that the cuts will overcome the usual inventory build that happens in the first quarter and that demand is improving.
• The supply reductions will only be withdrawn after consideration of market conditions and using a “phased-in approach,” he said.
• Prince Abdulaziz said he would have preferred to see a reduction in output, but couldn’t convince his Russian counterpart.
• “We also know it’s extremely tough for Russia to cut production in the winter.” he said.
• “I honestly believe they are doing everything by the book.” he said of Russia.
• “This is what we’ve been saying to them: What counts is not us believing you, what counts is the market, the secondary sources, the tanker trackers,” the prince said. “You have to approach them, you have to work with them.”
• Oil is struggling for direction Monday. It took and initial upward bounce on the headlines before selling off again.