Saudi Arabia has made several phone calls with oil producers. The topic was the possible opposition to the sharp declines in oil prices, bringing the WTI to a seven-month low.
The kingdom does not intend to tolerate a prolonged fall in prices and the Saudis are discussing all options without naming those involved in the conversation. It is not clear and exactly what potential measures were discussed during the talks.
Saudi Arabia’s largest producer has slashed production well below the quota agreed by OPEC in 2018. The next scheduled OPEC + meeting is September 9 in Abu Dhabi. It will be critical, especially for Russia and Saudi Arabia. The two countries are expected to shed more light on their intentions to produce amid falling oil prices.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
Trader Martin Nikolov