Saudi Arabia to US oil firms: Don’t assume OPEC will extend cuts

Senior Saudi officials told US firms in a closed-door meeting this week they shouldn’t assume Saudi cut to offset US shale growth, according to the report.

Saudi oil minister al-Falih reportedly said there would be no “free rides” The Saudis reportedly called the meeting to exchange views on the market and to gauge the outlook for shale.

If OPEC want to really stabilize the market, one way might be to issue floating quotas based on US or worldwide production.

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They could say something like “if the US produces 9m bpd, we will produce 32m bpd; for every barrel the US increases production, we will increase production by 1 barrel.”