The Big Picture

The Geopolitics of Vienna

Copyright © 2023 Energy Intelligence Group All rights reserved. Unauthorized access or electronic forwarding, even for internal use, is prohibited.
  • Opec-plus’ decision to cut 2 million barrels per day — around 1 million b/d in real barrels — underscores Saudi-Russian unity in the producer group, even as Russia and the West engage in all-out energy war.
  • The cut further strains US-Saudi ties after a short-lived rapprochement, and signals rising consumer-producer tensions.
  • It also emphasizes Saudi Arabia’s wish to keep a firm hand on the market’s reins, after Brent futures had dipped into the $80s.

The world is being buffeted on a weekly basis by an escalating energy war between Russia and Europe that has sent natural gas prices spiraling, kept oil prices elevated and fueled runaway inflation pressures. After last week’s apparent attacks on the Nord Stream pipelines linking Russia to Europe, this week’s twist involved a sharp Opec-plus cut in open defiance of US pressure — and an equally sharp reaction in Washington that included official accusations that the group was siding with Russia, further sales of strategic oil reserves and some inflammatory rhetoric from Congress.

Opec/Opec-Plus, Macroeconomics , Sanctions, Military Conflict, Security Risk , Ukraine Crisis
Wanda Ad #2 (article footer)
Politics around the Ukraine war have spurred new economic and trading relationships — not least on energy — that are outlining a sharper shift toward a more multipolar world.
Thu, Jan 26, 2023
Buyers and sellers of Russian oil products may get a few more weeks to wrap up deliveries under a proposed G7 price cap system.
Fri, Jan 27, 2023
The Opec-plus alliance's first meeting of the new year next week is expected to be a low-key and routine affair.
Thu, Jan 26, 2023