In this interview given to Ian Simm from Petroleum Economist, Dr Carole Nakhle, CEO of Crystol Energy, comments on Saudi Arabia’s strategy following the country’s unilateral decision to cut output, a move that told both the market and the cartel that Saudi Arabia is still in charge. According to Dr Nakhle, Saudi Arabia’s importance to the market comes from its swing capacity.
She also notes that Saudi messages on demand outlook are more likely to be more cautious than they actually think, especially following the new Covid-19 variants and governments imposing new restrictions and advising against all but essential travel. However, if this bullishness is correct, Saudi Arabia will be well-positioned to take advantage of any impending demand upside.
“Saudi Arabia’s surprise unilateral production cut“, Christof Rühl, Jan 2021
“Oil Market Outlook and OPEC+ Dynamics amid COVID-19“, Dr Carole Nakhle, Dec 2020