• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 56 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 mins NordStream2
  • 6 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 15 hours US intel warns China could dominate advanced technologies By NOMAAN MERCHANT October 22, 2021
  • 4 days The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 23 hours Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 2 days Biden Sets Target Of 50% EV Share In U.S. Car Sales In 2030
  • 4 days Storage of gas cylinders
  • 4 days "The Hidden Story About California's Container Ship Backlog" via Corbett Report
Why Tesla’s Latest Battery Decision Is A Gamechanger

Why Tesla’s Latest Battery Decision Is A Gamechanger

Tesla delivered yet another incredible…

Mexico’s Government Is Suffocating Its Energy Sector

Mexico’s Government Is Suffocating Its Energy Sector

Mexico’s destructive energy policy changes…

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




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News