• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Why hydrogen economics is does not work
  • 2 hours Starvation, horror in Venezuela
  • 1 hour The EU Loses The Principles On Which It Was Built
  • 22 mins Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 hour Crude Price going to $62.50
  • 17 hours Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 1 hour WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 11 hours Chinese EV Startup Nio Files for $1.8 billion IPO
  • 22 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 22 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 22 hours Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 1 day California Solar Mandate Based on False Facts
  • 1 day WTI @ 69.33 headed for $70s - $80s end of August
  • 24 hours Monsanto hit by $289 Million for cancerous weedkiller
Alt Text

Southern Company Just Raised Cost Estimates For This Megaproject Again

Southern Company's subsidiary announced yet…

Alt Text

China’s Oil Futures Jump To Record High

China’s Yuan denominated crude futures…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

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

Khalid Al-Falih

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:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News