Understanding Saudi Arabia’s tough talk at OPEC

Understanding Saudi Arabia’s tough talk at OPEC

Last week's virtual meeting of oil ministers from the OPEC+ alliance was a fascinating insight into the role Saudi Arabia, and in particular its oil minister Prince Abdulaziz Bin Salman, plays in the organisation.

It opened with Prince Abdulaziz reminding his counterparts about the importance of honouring any oil output cuts they agree to – not as an act of charity but as a vital commitment to maximising each member country's profits. It can't have been a particularly comfortable lecture for some of the member states to listen to.

It turns out that the new OPEC - where members are meant to be in it all together, sticking to output targets and making up for any shortfalls with deeper compensatory reductions - might be starting to show similarities to the old OPEC,