Listen: OPEC, Russia And Saudi Arabia discussed on Biz 1190 Overnight featuring Bloomberg Radio
"Huge savings on the things you needed. What? It's. A little bit higher a little bit closer to to to WTI. Cats are then sent shockwaves through the oil market by announcing it will quit OPEC at the start of twenty nineteen. The nation's energy minister said the decision was due to technical reasons. But a later tweet from the former prime minister hinted at a deeper political motive as he blasted the cartel and Saudi Arabia. Manage got more with Bloomberg's Anthony Paulo and Riyadh Hamadi, plus teric, blah, blah from NoMura asset management Middle East. The future of the group is a big question and a big discussion these days because it's working together with other producers now it's not OPEC on its own as it had been in the past dominating the market OPEC is producing somewhere around the third of global oil. So they don't have a monopoly. They don't have full control over the market. And and what we're saying is the really rising importance of Russia and the US as the US brings evermore production online, that's decrease in the influence of of OPEC. And means that OPEC has got to work with Russia. So really that that leads us to the question of, you know, whereas OPEC going it's becoming evermore reliant on Saudi Arabia's as the the big producer the main influence policy and the smaller countries like Qatar are really just going along and having to accept the cuts that that the Saudis and the Russians are agreeing to. Right. And Anthony, it's good to see you this. It does feel though like this move by Qatar is a little bit different to what we've seen in the past. I'm aware that we've had lapsed members. And I think Ecuador left at one point because it was upset about membership fees, but this feels different. So how is this going to play out at the OPEC meeting in Vienna? And what is it going to mean for that all important decision to cut or not cut oil production? Yeah. You're right, Tracy. I mean, I think this is really the interference of politics in into OPEC and OPEC had largely been independent of the political issues even on Iraq. Iran war, fighting against each other in the nineteen as they were still sitting at the same table. Iraq had always been at the table of OPEC even during the war to out Saddam Hussein even during sanctions before then now we've seen this this spat between the Gulf countries, namely Saudi Arabia, the U E aligning up against guitar. We we've seen that really come through. Just hold onto that thought. Because this is where I want to bring Riyadh in into the conversation read, this is about politics, if you look at not tweet from the former prime minister, I mean, it was it was fairly Da-ming wasn't it. In terms of the viewpoint. Also, pretty clear that politics is what this is about. I mean, I mean, look like Anthony pointed out the key relationship nowadays and the oil market. Is the Saudi Russia access, right? So and also it's worth pointing out cutters. Small producer in OPEC. So not necessarily a deciding factor in whatever is decided in this OPEC plus relationships. So this seems very much a signal that the tension between Qatar and its neighbors isn't over yet that this is going to continue. There was some."