Reuters Econ World

OPEC+

May 14, 2025
Join Ron Bousso, an energy columnist at Reuters with extensive experience covering oil and gas giants, as he dives into the complexities of OPEC and its influence on oil prices. He discusses Saudi Arabia's stance on low prices and the risks of a potential price war among OPEC allies. The conversation also unpacks contango, a term that might intimidate some, but is crucial for understanding market dynamics. Bousso provides insights into the financial struggles faced by member nations and the broader oil landscape in an unstable economy.
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INSIGHT

OPEC+ Controls Oil Markets

  • OPEC is a powerful alliance of major oil producers managing the oil market since the 1960s.
  • OPEC+ formed in 2016 with Russia and others to coordinate production and stabilize prices.
INSIGHT

OPEC+ Discipline Breaking Down

  • Some OPEC+ members are producing above quotas, breaking discipline within the alliance.
  • This undermines the coordinated management of oil supply and affects market stability.
INSIGHT

Saudi's Price War Strategy

  • Saudi Arabia reacts to quota non-compliance by increasing production, risking lower prices.
  • It aims to teach producers a lesson and gain market share due to its low production costs.
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