Saudi Arabia could cut oil production further thanks to the first stage of the OPEC+ group’s meeting this morning, supported by the UAE.
The nation has won provisional backing for the move has made it contingent on other nations contributing to the cuts, measures that if not could jeopardise the agreement.
The UAE, hosts of COP28 and the spotlight of the world for the next two weeks, are reportedly backing the cuts in support of Saudi Arabia, its close ally.
The announcement comes as Brent crude reached $84.69 a barrel, the highest since early November, taking gains since the end of last week to about 6 per cent.
On top of the 1m b/d of cuts already promised for next year, the kingdom would also extend its existing temporary voluntary curbs, which also account for around 1mn b/d.
Today’s full slate of meetings, being held fully online, follows the cancellation of the planned initial meeting last Sunday.
The wider context of global oil remains in flux thanks to ongoing geopolitical turmoil.
Prices have slid as a result of both the Russo-Ukraine and Israeli-Gaza conflicts causing supply fears, though real-world impact is yet to materialise.