Oil Markets, Western Firms Anxiously Await Saudi Decisions
The Saudi Supreme Petroleum Council (SPC) took the rare step on August 30th of commenting on OPEC production, saying that while Riyadh would work with others in OPEC to ensure a “suitable” increase in output from the group, the kingdom wanted a revision of the controversial OPEC price band mechanism.
The Saudis believe that OPEC price hawks will use the mechanism as an excuse not to increase supplies over 500,000 b/d should the mechanism be triggered just before the September 10th ministerial conference. While oil markets analyzed the SPC statement, Western oil firms were rushing to hand in project proposals for natural gas development in the kingdom that were due on August 26th. The ministerial negotiating committee informed some firms that what they delivered wasn’t up to snuff