Global Markets

Iran-Saudi tensions may limit OPEC’s options

Geopolitical strife may keep OPEC members from reaching an agreement on the oil production cut at their upcoming meeting Geopolitical strife may keep OPEC members from reaching an agreement on the oil production cut at their upcoming meeting.
By Peter Stewart 20 June 2018 0 31374
OPEC’s ministerial meeting in November 2017 OPEC’s ministerial meeting in November 2017. (OPEC)

OPEC’s ministerial meeting in Vienna on 22 June will be dominated by geopolitics, even if the formal communiqué that results from such gatherings typically makes no mention of them at all. 

It already looks probable that OPEC and its non-OPEC cohorts, who in November 2016 agreed to cut a combined 1.8 million barrels per day (MMb/d) of crude oil supply, will raise oil production after the meeting. Saudi Arabia and Russia talked about a hike of at least 1 MMb/d in bilateral talks held in St...