Opec+ oil strategy success buys time ahead of tough decisions

Opec+ oil strategy success buys time ahead of tough decisions

Opec and its allies can celebrate their success in buoying world oil markets when they gather this week. But the coalition will soon be faced with some tough choices. Last month's pledge by Saudi Arabian Energy Minister Prince Abdulaziz bin Salman to slash production by a further 1 million barrels a day has buttressed global markets against the latest onslaught from the pandemic. A price rebound to $57 a barrel in London is shoring up the producers' revenues. While that relieves Opec+ of any need to adjust policy on Wednesday, it'll need to start considering how long to restrain output. "Prince Abdulaziz bin Salman's doctrine that you err on the side of caution has been vindicated," said Helima Croft, chief commodities strategist at RBC Capital Markets LLC. On Wednesday, "we might get the contours of the arguments that will be made next month." The Organization of Petroleum Exporting Countries and its partners have resolved this year to restore some of the 7. 2 million barrels of daily output “” roughly 7% of global supplies “” they continue to idle after making vast production cuts when the pandemic erupted last spring. The restrictions have proved effective, turning around an oil market