Saudi Arabia and Russia are in talks about different oil strategies before crucial OPEC+ meeting about the market, according to Bloomberg.
Saudi Arabia indicated that it would prefer to keep production steady, while Moscow suggested that it still wants to continue with production increase. Saudi Arabia has one million barrels per day (mmbbl/d) of voluntary cuts in addition, it pledged to make extra restraints only in February and March.
Additionally, OPEC+ meeting will hold on March 4 to discuss whether to provide more crude to the market in April or not. As Russia wants to restore 500,000 bbl/d, Saudi Arabia offers to maintain some part of voluntary cut in April and limit the overall of production increase.
Saudi Energy Minister, Prince Abdulaziz bin Salman, stated that “the football match is still being played, and it’s too early to declare any victory against the virus,” He also added that “the referee is yet to blow the final whistle.”
In the other context, OPEC outlook to US shale production to decline by 140,000 bb/d to 7.16 mmbb/d. The US government expects shale production in March to drop about 78,000 bbl/d to 7.5 mmbb/d. It should be mentioned that Texas paused any production operations last week due to the severe cold.