Earlier this month (2/4/2023), OPEC+ surprisingly decided to increase production cuts starting May by 1.6 million barrels per day (bpd), with OPEC+ leaders citing an uncertain demand outlook.
Nevertheless, this decision from the cartel's de facto leader, Saudi Arabia, is unlikely to be fully related to concerns over market stability. It goes without saying that the announcement has deeper, confidential motives.
The recently announced oil cuts will deteriorate even further Saudi-U.S. relations, but the most important question remains: Does Saudi Arabia still care about U.S. concerns? Are they not afraid of a harsh U.S. response?
Tactical Report has prepared a 1017-word (3 pages) in-depth report to answer these questions and to shed light on the real motives and reasons behind the recent Saudi OPEC+ behavior.
