How an Opec deal could work
Iran’s demands can be accommodated with some adjustments of the numbers
Getting Opec’s fractious members to agree on cuts has always been difficult: herding cats is easier. But the geopolitical rivalry between Saudi Arabia and Iran, enemies in proxy conflicts from Yemen to Syria, makes the negotiations underway now even harder. Iran is under less pressure than Saudi Arabia. The kingdom’s economy is suffering, while its rival enjoys a post-sanctions recovery. One equation sums up their different stances in negotiations about whether to cut output to support prices. Say Saudi Arabia slashes 0.5m barrels a day from its output – the idea it has floated – to 10.1m b/d, and gains a $5-a-barrel lift in the oil price, from $46 to $51/b. Its daily income rises by about $
Also in this section
16 December 2025
The December 2025/January 2026 issue of Petroleum Economist is out now!
16 December 2025
Abdullah Aljarboua serves as a senior fellow in the energy macro & microeconomics programme at KAPSARC. His work spans macroeconomics, energy-economic modelling, large-scale optimisation and advanced computational techniques for modelling complex energy policy dynamics. Here he speaks with Petroleum Economist about the Gulf region’s role in shaping the energy landscape over the coming decades
16 December 2025
The 25th WPC Energy Congress, taking place in Riyadh in April 2026 brings together global leaders, scientists, policymakers and innovators at a pivotal moment in the world’s energy evolution.
15 December 2025
As contradictory as it might seem, US oil output has continued to grow over the last several years, even as drilling in the shale plays has maintained a slow decline. This improbable dichotomy is a testimony to the industry’s technological prowess
