Saudi steps back to move forward
Unilateral production cuts and reconciliation with Qatar may look like a full retreat from longstanding policy positions. But they may yet prove smart tactical moves
It is perhaps an understatement to describe Saudi Arabian energy minister Prince Abdulaziz Bin Salman’s early January announcement that his country had chosen to unilaterally cut 1mn bl/d of crude production during February and March as a shock. Following on the heels of a sudden move to reconcile with Qatar, many analysts were applying terms such as funk and disarray to the kingdom’s strategy. The prince framed the reduction as a “pre-emptive measure” against a possible new wave of the Covid-19 pandemic that has wreaked havoc on global energy demand over the past year. But, speaking after an Opec+ conference where he had failed to stem Russian demands for a 65,000bl/d increase in Moscow’s F
![](/images/white-fade.png)
Also in this section
26 July 2024
Oil majors play it safe amid unfavourable terms in latest oil and gas licensing bid rounds allowing Chinese low-ball moves
25 July 2024
Despite huge efforts by India’s government to accelerate crude production, India’s dependency shows no sign of easing
24 July 2024
Diesel and jet fuel supplies face a timebomb in just four years, and even gasoline may not be immune
23 July 2024
Rosneft’s Arctic megaproject is happening despite sanctions, a lack of foreign investment and OPEC+ restrictions. But it will take a long time for its colossal potential to be realised