OPEC is Resolute – Policy is Working, No Change


In the run up to this meeting, we had the usual conjecture as to what would happen. Beforehand at registration, I met some of the Nigerian delegation and asked them what they though and they were very enthusiastic that a new Secretary General was going to be appointed.
Elsewhere, rumours were again leaked out that an output deal would be reached but the true reality had already been accepted by most of us, that OPEC would not deviate from the policy that it had set in 2014 by which it would maintain output levels irrespective of price. So, why did over three hundred journalists and analysists and film crews book themselves in to attend, but many did not turn up. We all have views and think we know, but, we can never be sure. We follow and hang on to “fundamentals” and “technicals” and then we have OPEC which can often be depended on to do something different and that is why there is always so much interest.

One key factor beforehand was the unexpected replacing of Ali al-Naimi the veteran Saudi Oil Minister by Khalid al-Falih. The policy from Saudi Arabia is changing as the country streamlines its financial management and prepares to digress its sole dependency away from oil revenues. Al-Naimi has been the vociferous leader of OPEC for many years and now OPEC ministers will have to learn and understand the new agenda from Saudi. Will Saudi continue to support OPEC interests or its own and that is what they want to know.

John Hall

John joined Alfa Energy in 2013 as Chairman, where his specific interest is the development of the company’s profile in the areas in which it primarily operates - across the EU and the US. He is Fellow of the Energy Institute, a Member of the Parliamentary Group for Energy Studies, an Associate Member of the Chartered Institute of Purchasing and Supply, and a Member of the Market Research Society. He began his long career in the industry when he set up John Hall Associates in 1973, a company which merged with Energy Quote in 2009 and currently trades as Energy Quote JHA.