Freezing output does nothing for the oil market
If the best Opec can muster is a weak deal not to lift already high production this will add little strength to prices. But the Doha deal may be just the first step
After weeks of shuttle diplomacy, Eulogio Del Pino, Venezuela’s oil minister and the agitator-in-chief leading calls for big producers to cut crude output, has his answer. Saudi Arabia, Russia, Qatar and Venezuela agreed in Doha on 16 February to freeze production at January’s levels – provided, in the words of Russian energy minister Alexander Novak, “other producers agree to this initiative”.If that’s the sum of it, the oil market is going nowhere fast. Russian production reached a record high of 10.88m barrels a day in January. Opec production, at 32.63m b/d in January, is almost 0.6m above its 2015 level. Keeping output where it is will do nothing to stop global stocks building. The Inte
Also in this section
10 December 2024
Sector at economic and strategic crossroads, but clear path ahead for midstream additions
30 November 2024
Decades of turmoil have left Iraq’s vast energy potential underutilised, but renewed investment and strategic reforms are transforming it into a key player in the region
29 November 2024
The country's fifth and sixth oil and gas bid rounds have attracted a range of new players with gas as well as oil ambitions—and there’s a seismic shift in the contracting process
28 November 2024
Iraq is charting a new path for its indigenous resources and its youth, hoping to electrify the future with a mix of reforms and modernisation to fuel growth
