The Guradian 02/12/19 - Vox Markets | Vox Markets

The Guradian 02/12/19

Saudi Arabia is planning to use its position at the head of the Opec oil cartel to buoy global oil prices before the $25bn stock market debut of its state-owned oil giant. The Organization of the Petroleum Exporting Countries is due to meet its oil market allies this week to agree the cartel’s oil production policy for 2020. The world’s largest oil-producing countries are expected to maintain a tight rein on their oil output in an effort to keep global prices from tumbling below $65 a barrel. As Opec’s de facto leader, Saudi Arabia is expected to use its position to push other members to tighten their compliance with the group’s agreed oil production limits, while cutting its own output even further than it needs to. The oil-rich kingdom hopes that if it keeps a lid on oil production next year the long-awaited initial public offering (IPO) of Saudi Aramco may fetch a good price on its market debut in the next two weeks. On Sunday, Iraq’s oil minister, Thamer Ghadhban, told reporters in Baghdad that Opec and allies outside the cartel, known as Opec+, would consider cutting supply further by about 400,000 barrels a day to 1.6m.