• 5 minutes Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 8 minutes China Faces Economic Collapse
  • 12 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 14 minutes Iran in the world market
  • 17 minutes Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 4 mins Experts review drone damage . Say Saudis need to do a lot of explaining.
  • 7 hours USA Wants Iran War -- Shooty Shooty More
  • 12 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 12 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 33 mins Saudis Confirm a Cruise Missile from Iranian Origin
  • 8 hours The Spy Money: U.S. Wants To Seize All Money Edward Snowden Makes From New Book
  • 54 mins Aramco Production
  • 14 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 5 hours Trump Will Win In 2020 And Beyond..?
  • 1 day USA : Attack came from 'Iranian soil'. Pompeo to release 'evidence'.
  • 6 hours The Belt & Road Initiative: A Wolf in Sheep's Clothing?
Alt Text

The Biggest Winner In The Saudi Oil Supply Crisis

The weekend attacks on vital…

Alt Text

Oil Demand Growth Weakest In Nearly A Decade

Global oil demand continues to…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Here’s How Close Of A Call the OPEC Deal Really Was

The day before OPEC reached a deal on reducing oil output, Saudi Arabia had tried to gauge the market reaction to a possible no-deal with some of the biggest global oil traders, in a sign that they were not confident a deal would be had.

On Tuesday last week, Saudi Arabia held private talks with Mark Couling, head of crude oil at the world’s largest independent oil trader Vitol, Pierre Andurand at Andurand Capital, and a trader from Lukoil’s trading company Litasco, the Financial Times reported on Sunday, quoting people familiar with the talks.

The talks were held in Vienna before Saudi Arabia’s oil minister Khalid al-Falih arrived in the Austrian capital for the OPEC ministerial meeting scheduled for the next day.

The Saudis warned oil traders in that meeting that it was not certain that the cartel would reach an agreement to cut supply in its attempt to boost oil prices, the FT quoted sources familiar with the talks as saying. Previous indications from other Gulf nations’ representatives had also pointed to uncertainties over a deal due to the continuing disagreements between Saudi Arabia, Iraq and Iran.

But on Wednesday last week, OPEC, against most odds, reached a deal to cut oil supply by 1.2 million bpd to 32.5 million bpd, effective in January. Prices soared by 8 percent on November 30 alone, and jumped a total 14 percent between Wednesday and Friday. Related: Canada Fires Up Drilling Rigs On News Of OPEC Deal

Saudi Arabia speaks regularly with energy analysts, although it is rarer to see the Saudis discuss oil matters with trading companies.

The fact that they held talks with major oil traders prior to the OPEC meeting may signal that Saudi Arabia wanted to know just how far they had to bend over backwards to get last week’s OPEC meeting done. They likely wanted to know how much ground they would need to give up to Iran and Iraq—the holdouts—if they continued to hold out.

One Saudi delegate told the FT:

“These discussions are a part of ongoing consultations we have with analysts, producer companies and traders particularly around OPEC meetings and throughout the year.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play