Inside OPEC+, Saudi ‘lollipop’ oil cut was a surprise too – Reuters

Inside OPEC+, Saudi ‘lollipop’ oil cut was a surprise too – Reuters

LONDON, June 9 (Reuters) - Saudi Arabia kept under wraps its plan to make a deep cut to its own oil output during a weekend of OPEC+ talks in Vienna, several OPEC+ sources told Reuters, with some member states only learning about the reduction from the final news conference.

Saudi Arabia is the top OPEC producer and the member with the most flexibility to raise or cut output, giving the kingdom unrivalled influence over the oil market - although the impact on oil prices since announcing its plans has been modest so far.

The Saudi Energy Minister Prince Abdulaziz bin Salman has previously used the power of surprise in managing oil markets, where prices have come under pressure due to concerns about the weakness of the global economy and its impact on demand.