Oil stability has become the codeword for an implied price floor
Opec+ mastering art of targeting prices without targeting prices
Two-speed producer group is now nimble enough to make price floor work
Opec messaging could not be any clearer: oil stability has become the codeword for an implied price floor, with Saudi Arabia’s ire constantly aimed at speculators. While some commentators were caught up in the complexities of geopolitical doublespeak to explain Opec+’s surprise voluntary production cut in early April, the reasoning for the 1.66mn bl/d reduction from May through December—which includes a 500,000bl/d cut from Russia—is much simpler: uncertainty over the demand outlook. What is more nuanced is Opec+’s newfound approach. Unshackled by those cartel producers themselves shackled by production constraints, Saudi Arabia and its predominantly Middle Eastern cohorts were able to move
Also in this section
13 March 2026
Brussels is again weighing a cap on gas prices amid the Hormuz crisis, but the measure could backfire by deterring the LNG cargoes Europe urgently needs
12 March 2026
Emergency oil stocks provide a last line of defence to oil market shocks, so the IEA’s unprecedented 400m bl release represents something of a double-edged sword
12 March 2026
LPG could rapidly expand access to clean cooking across Africa and prevent hundreds of thousands of deaths from indoor air pollution each year, but infrastructure shortages and regulatory barriers are slowing investment and market growth
11 March 2026
Missiles over Dubai and disruption in Hormuz are testing the emirate’s reputation—and shaking the energy hub at the centre of the Gulf economy
