• 4 minutes Trump has changed into a World Leader
  • 7 minutes China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 8 minutes Indonesia Stands Up to China. Will Japan Help?
  • 10 minutes US Shale: Technology
  • 13 minutes Which emissions are worse?: Cows vs. Keystone Pipeline
  • 17 minutes Shale Oil Fiasco
  • 51 mins Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 16 mins Phase One trade deal, for China it is all about technology war
  • 2 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 6 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 9 hours Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 4 hours Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 8 hours Wind Turbine Blades Not Recyclable
  • 8 hours Might be Time for NG Producers to Find New Career
  • 8 hours Denmark gets 47% of its electricity from wind in 2019
  • 1 day Beijing Must Face Reality That Taiwan is Independent
Alt Text

Why BlackRock Is ‘Going Green’

Investor pressure on fossil fuel…

Alt Text

This Emerging Oil Hotspot Threatens The OPEC Deal

Guyana has exported its first…

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