Riyadh’s rebalancing act

摘要

The Opec+ decision on 1 April to gradually increase production in May-July comes as a small surprise. Oil prices have fallen by $5/bl since the previous meeting on 4 March, Chinese refiners are buying less and a new wave of Covid-19 in Europe threatens demand growth prospects. But a cautious approach to relaxing quotas earlier this year, championed by Saudi Arabia, has left Opec+ more flexibility to restart output, underlining Riyadh’s skilful market management strategies.