for Saudi Arabia
The turmoil at the OPEC+ meeting injects uncertainty into the market—and may presage the challenges ahead.
As Brent crosses $70, oil market narratives have flipped to questions over supply rather than demand.
Oil-producing countries face severe financial and political risk as the world transitions away from oil.
As oil prices jump to 13-month highs, OPEC+ has opportunity to unwind its deep production cuts.
New COVID-19 restrictions in major economies and a new coronavirus variant raises serious oil market concerns about the next few months.
Amid internal discord and budget pressures, OPEC+ has reportedly agreed to incremental production increases and monthly monitoring.
Even after historic cuts, lower demand means the oil market is still under pressure.
Cautious optimism is returning to the oil industry, but prices are nowhere near profitable for the domestic industry.
Oil prices have risen ahead of the next OPEC+ meeting, but OPEC-Russian coordination is far from assured.
Oil's collapse must force a reckoning for Saudi Arabia, which has long relied on oil revenue to hold its economy together.