U.S.-Saudi Diplomacy Paved Way for OPEC+’s Surprise Output Hike
- U.S. welcomes agreement to boost crude supply in January
- Group says it could revisit the decision if the market changes
Photographer: Simon Dawson/Bloomberg
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The U.S. and Saudi Arabia have reached a detente after weeks of hostility about high oil prices, with the OPEC+ cartel announcing a production hike even as the new Covid variant threatens demand.
The group led by Saudi Arabia and Russia surprised markets by agreeing to add 400,000 barrels a day of oil from January, even as the virus undermines prices for oil-producing nations. It left the door open to changing its mind, however, saying ministers could gather again at any moment to review the decision if conditions change.