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Saudi supports cooperation to stabilise oil market, blames Russia for current turmoil – Gulf source

  
Analysis, Crude
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Actions speak louder than words

Oil

According to Reuters – citing a senior Gulf source familiar with Saudi Arabia – the kingdom “has always welcomed cooperation among oil producers to stabilise the market, based on the principles of fairness and equity”.

Adding that producers were forced to end all voluntary supply restraint because of Russia’s rejection to deeper oil output cuts in the OPEC+ meeting last month.

“It was Russia’s position that triggered the collapse of the OPEC+ agreement.. this caused massive instability in oil markets”, said the source.

Well, actions speak louder than words. The fact that both sides continue to put on this show for the world, where they are still not talking, just means that no real cooperation is imminent and that continues to bode ill for oil prices so long as this continues.

Novak reappointed as Russia’s energy minister but all eyes on US production

  
  Analysis
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Kremlin statement

Actions speak louder than words so this is the best possible endorsement of Russia’s cooperation with OPEC.
Earlier today, OPEC’s secretary general confirmed there will be a meeting in March and said that Russia was expected to continue with OPEC.
In other oil news, Halliburton reported earnings today and along with Schumberger yesterday, they signaled that shale activity has already peaked. The oilfield services giants have keen insight into the industry and today Halilburton CEO Jeff Millers said that spending would keep falling in North America
“2019 solidified the pivot from growth to capital discipline in North America,” Miller said.
The outlook for US production depends on DUCs or drilled but uncompleted wells. In theory, these could allow companies to tap into oil without spending money but some market watchers are skeptical that the wells have any real value.
More on the outlook from Halliburton here via Bloomberg.
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