Opec+ efforts to support oil prices ran out of steam in November, with the summer rally definitively coming to an end. Opec kingpin Saudi Arabia has been cutting production by an extra 1mn b/d since July in a bid to bolster prices, but the recent rout has seen oil prices tumble by more than $10/B since late September, leaving November prices just $7/B above their June average.
The summer price rally had lifted Saudi Arabia’s oil export revenues to a five-month high $22.2bn in September (see chart 1). The kingdom’s flagship Arab Light crude oil grade hit its highest price level in a year that month, averaging $96.51/B, but subsequent declines mean that monthly revenues will have likely fallen since. (CONTINUED - 705 WORDS)